Are you about starting a babysitting business? If YES, here is a complete sample babysitting business plan template and feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a babysitting business. We also took it further by analyzing and drafting a sample babysitting business marketing plan template backed up by actionable guerrilla marketing ideas for babysitting businesses. So let’s proceed to the business planning section.
Why Start a Babysitting Business?
The babysitting business is one that has started gaining prominence as more mothers have decided not be stay-at-home moms but to pursue their careers and businesses due to circumstances best known to them.
If you are an entrepreneur looking to start a relatively inexpensive business that might also tend towards flexibility depending on the scale of the business you intend to run, then the babysitting business might just be the one.
It should however be noted that in starting this kind of business, you would need to have relevant experience and also obtain certain certifications in basic child care and child safety. Another relevant certification that you would need to obtain is child and infant CPR.
While a business plan might be difficult to write, there are many free babysitting business plan templates online. Below is a sample babysitting business plan template you can make use of.
A Sample Babysitting Business Plan Template
1. Industry Overview
The babysitting industry in the united states of America is merged with the child care services industry and as such has about 54,000 facilities that are commercial in nature and bring in a revenue of approximately billion.
Asides the commercial child care facilities, 21,000 additional facilities are run by non-profit organizations which brings forth a combined revenue of $12 billion.
Globally, the demand for child care services has increased due to the high number of women in workplaces and in businesses.
There is also a marked increase in the number of women who are single parents. According to the Organization for Economic Co-operation and Development (OECD), nearly 90% of 4 year-olds are enrolled in preschools in countries that belong to the organization.
According to IBISWorld, there are no companies with a dominant market share in this industry even though the industry is one that has revenue of $48 billion with an annual growth of 1.5% between the period of 2011 and 2015. The industry has employed over 1.5 million people in the United States.
This industry grew rapidly in the 1990s but experienced a decline when there was an economic downturn which meant fewer families could afford to spare income to pay for services. However, the improving economy has seen the industry not only recover but grow rapidly especially with increased government spending.
According to the U.S Bureau of Labor Statistics, babysitting services have the fastest employment growth rate when compared to other industries. Also, according to Sageworks, this industry has experienced consistent growth in recent years especially as other industries struggled in the recent economic recession.
Asides from the increasing demand of having to balance ongoing expenses with the ability of parents to pay, owners running this kind of business also have to contend with industry regulations and scrutiny from parents as well as the government.
These regulations can add to the cost of running the business. According to another analysis however, babysitting businesses tend to have high margins, grossing around 96%, which means that it is very easy for entrepreneurs who are focused to not only scale but to grow their operations as well.
9 out of 10 babysitting businesses are however operated from home and have no or very few employees leading to less financial investments and also allows these set of entrepreneurs to enter and exit the market as they please.
2. Executive Summary
Gooey Babysitters Inc is a standard babysitting businesses that will be based in Tampa Bay – Florida here in the United States of America and will offer core and additional but related services to our various clients. We will not only be based in Tampa Bay but hope to have places all over the United States of America by selling our franchise and also offering consultancy and advisory services.
Our vision is to ensure that we create a babysitting operation that not only meets but also exceed the expectations of our various customers. We also intend to become known nationally for our services and become amongst the top three babysitting choices for parents and all others who would require our services by the year 2022.
We know how sensitive running this kind of business is and we intend to ensure that we have a standard facility that we will use to offer our babysitting services. We will maintain a high standard regarding hygiene. We have secured permits and licenses from the relevant ministries and departments here in Tampa Bay – Florida.
We are constantly exploring the market so as to determine which opportunities are available to us so that we will always have a strong bottom line that will allow us sustain and grow our business to the standard we require. We intend to hire professional and competent hands to help us run the various services that we intend to offer at Gooey Babysitters Inc.
These hands are experienced and understand how we can best achieve all our goals and objectives. We intend to ensure that not only will our staff be well paid, they will also be allowed to undergo training on a continuous basis in order to enhance their skills and productivity on behalf of our company.
We intend to cultivate a working environment that is not only conducive for the children we intend to babysit but also for our employees as well, whilst holding ourselves accountable to the highest standards.
Finally, our Chief Executive Officer and her daughter, the Children Director, Mrs. Kim and Dr. Jenner Karadashian have the required experience necessary to ensure that we are able to attain all our goals and objectives.
3. Our Products and Services
At Gooey Babysitters Inc, we intend to offer various services to all our various customers here in our permanent location in Tampa Bay – Florida and hopefully all around the United States of America as we expand our business.
We however do not intend to rely solely in offering one service thereby having just a single source of income. We know that to fully get a solid standing in the industry, we would need to have multiple sources of income, which will give us a strong bottom line and sustain our business for a long time to come.
All the services we intend to offer in addition are those that are under the permissible laws of the United States of America. Some of the services we therefore intend to offer are;
- Basic babysitting services
- Additional but related babysitting services such as engaging the children educationally, playing games with the children and going on vacation
- Consultancy and advisory services
4. Our Mission and Vision Statement
- Our vision is to ensure that we create a babysitting operation that exceeds the expectations of our customers. We also intend to become known nationally for our services and become amongst the top three choices for parents by the year 2022.
- In order to fully achieve our vision, we intend to provide top babysitting services by ensuring that all our staff have specialized training whilst also providing the right facility that will be conducive for the infants/toddlers.
Our Business Structure
Our intention is to build a standard babysitting service here in Tampa bay – Florida and in order to achieve this we are looking to ensure that we get it right from the beginning, which is why we intend to go the extra mile to ensure that there are processes and structures in place that will allow us get professional, competent and dedicated employees to occupy all the available positions that will be available in our company.
Due to the business goals we intend to achieve, we are therefore very cautious about the kind of people we recruit to work with us, which is why we are going all out to ensure that we get the best and are able to pay them rates that are better than what their counterparts are getting in similar businesses throughout the industry.
We will ensure that our management team thoroughly understands the philosophies and vision of the company and are also able to communicate this to the staff and ensure that everyone is all on the same page.
Due to the fact that we would be offering more services than conventional babysitting business, we would be hiring more employees and having them handle all the various services that we would be offering here at Gooey Babysitters Inc. Below therefore, is the business structure that we intend to build at Gooey Babysitters Inc;
- Chief Executive Director
- Children Director
- Human Resources and Admin Manager
- Marketing Team
- Accountant and Cashier
- Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Director
- In charge of drafting the overall strategic vision of the company
- Ensures that the intended vision and goals of the company are implemented by all staff
- Drafts the budget that will be used to run the business
- Appoints key management staff to handle sensitive position in the company
- In charge of the running the daily affairs of the company
- Takes decisions on behalf of the chief executive officer
- Ensures that all management staff give reports as at when due
- In charge of creating activities for the children
- Is certified to handle emergency cases that would require CPR
- Liaises with the parents of the children to know of any ailments that the child might have and also report to the manager and Chief Executive Officer
Human Resources and Admin Manager
- Carries out recruitment and orientation of new employees on behalf of the company
- In charge of staff welfare and promotion
- Ensures that the administrative aspect of the company runs smoothly
- Conducts one-on-one marketing in order to get clients for the company
- Conducts market research in order to identify new target markets for the company
- Drafts effective marketing strategies on behalf of the company
Accountant and Cashier
- Prepares all financial statements and information on behalf of the company
- Carries out internal audit
- Ensures that the company’s books and that of the banks are effectively reconciled as at when due
- In charge of ensuring that the loan taken by the company gets repaid according to plan
Front Desk Officer
- Answers inquiries and complaints on behalf of the company
- Is updated about industry trends as well as company information so as to offer clients accurate information
- Maintains an accurate customer database on behalf of the company
- Helps bring in supplies needed by Gooey Babysitters Inc
- Runs emergency errands as well
- Maintains the vehicle and ensures that major faults are reported to the right department
- Ensures that the facility is clean at all times
- Ensures that cleaning supplies are in stock
- Carries out any other duty as might be determined by the Manager
6. SWOT Analysis
Due to our intention of running a standard babysitting business here in Tampa Bay – Florida, we have sourced for the best business consultants that understand the location where we would be operating from and the business itself to help us examine our business concept and determine how likely we are to succeed in this business and also be able to compete favorably against our competitors. We know that conducting a SWOT analysis is very vital especially for a new business such as ours.
In view of this, we were able to take stock of our strengths, weaknesses, opportunities and the likely threats we are going to be exposed to here in Tampa Bay – Florida, as well as throughout the United States of America as a whole. Below, is a of the SWOT analysis that was conducted on behalf of Gooey Babysitters Inc;
Our strength lies in the fact that we are offering our clients various services that are aimed at meeting the various needs that our clients might have. Even though we are relatively new, we have a strong brand name that is instantly recognizable and it is allowing us to stand out from others in the same industry.
Our facility is of a high standard and we have well qualified staff that are not only competent but also understand our vision and objectives as a company and are willing to ensure that they are achieved. Our Chief Executive Officer has the required experience necessary to run a business, while our Children Director is experienced with handling children within the ages that we intend to babysit at our facility.
Our facility is not that huge compared to that of our competitors. Also, because we are relatively new in the industry, we do not have the necessary finance, experience or even staff that will allow us to effectively compete as we should against our competitors here in Tampa Bay – Florida and all around the United States of America as well.
There are several opportunities available to us in this market such as a potential customer base that is expanding due to more babies being born in the Tampa Bay location where our business is situated.
Also, the strong economy means more parents will have more disposable funds to pay for babysitting services such as ours. Also, we are located in a strategic place that is convenient for commuting workers to drop off their kids on the way to work or pick them up on the way home from work.
There are several threats that we are likely to face in the course of running the business and they are lack of strong financial backing that will allow us effectively compete against our competitors.
Also, threats such as the arrival of competitors in same location and a weak economy that will see to more parents not having jobs and the disposable income to spare for our services exist for us. Finally, we also face legal threat as this is a business that is sensitive and where anything could go wrong resulting in threats.
We know that all businesses face threats and we are ready to combat any threats that we might face during the course of starting our babysitting business.
7. MARKET ANALYSIS
- Market Trends
There will always be a growth and demand for babysitting services and this is due to the fact that more women are now pursuing their careers and dreams and also that there is an increasing number of single parent families. Demand for the services of babysitters is therefore primarily driven first by the growth in population as well as employment and income.
Asides from the above fact, there is also the fact that parents and guardians now recognize the importance of early education in whatever form and so this has driven the demand for babysitting services that come with additional services such as educating the child.
Finally, the profitability of babysitting businesses depend highly on how well businesses market their services, how efficient their operations are, how standard their facilities are and also what their reputation is. While large companies can compete via advertisement and administration, smaller companies can compete by offering specialized services.
8. Our Target Market
There will always be those looking for where to drop off their children either to have time for themselves, to pursue their careers, education, dream or business goals. However, even though our target market might likely be said to be a particular group of people, but we cannot restrict our target market to just a single group.
This is why we have conducted a thorough market research that will help us understand what our target market expects from us and what we should expect from them as well as their characteristics. From our result, it seems that we would be offering our babysitting services to the following groups of people;
- Career oriented couples
- Single parents
- Business executives
- And others falling into same group
Our competitive advantage
Our intention of starting Gooey Babysitters Inc is to build a business that is of a very high standard that will set the pace for other similar businesses not only here in Tampa bay – Florida but also all over the United States of America as well.
This has led us to come up with competitive strategies that will allow us to compete favorably in the industry. First, we intend to ensure that our facility is up to standard, this will assure our clients of how serious we are taking the business.
Secondly, we intend to hire very competent and well qualified staff because we take our business structure very seriously. Those we intend hiring are those that have a deep understanding of the industry and also have what it takes to ensure that Gooey Babysitters Inc achieve all that it intends to at the end of a defined period.
We also intend to take very good care of our employees by ensuring that the welfare we provide them beats that which is being offered in similar startups such as ours here in Tampa Bay – Florida. We also intend to motivate our employees in several other ways and will make sure that those who work hard receive their due promotion as at when due.
We will also ensure that our employees undergo trainings every once in awhile to enhance their skills and increase their productivity.
Finally, our customers are very important to us and as such we will go all out to offer incentives to our customers and also ensure that those loyal to us derive a great benefit from patronizing our services. Our mission is to ensure that we not only meet our customers expectations but exceed them as well.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Gooey Babysitters Inc is established with the sole intention of making profit as any other business in the United States of America and we will do all it takes to ensure that we achieve our profit-making aim by delivering varied services to all our customers here in Tampa Bay – Florida as well as all around the United States of America.
Gooey Babysitters Inc therefore intends to generate income by selling the following products;
- Basic babysitting services
- Additional but related babysitting services such as engaging the children educationally, playing games with the children and going on vacation
- Consultancy and advisory services
10. Sales Forecast
The demand for babysitting services is due to the fact that women and single parents need to pursue educational, career or business oriented goals and therefore would always seek out such services. Our strategic location in Tampa Bay – Florida has us very optimistic in ensuring that we would meet our target of generating enough income within the first three months of our business and thereby grow our business from there.
Our evaluation was taken from a critical look at the child care service industry,where we analyzed our chances of how well we would fare in the industry and were able to come up with the following positive forecast. The sales forecast we have done is based on the information and assumption garnered from similar startups such as ours here in Tampa Bay – Florida.
Below therefore, are the sales projections that was conducted after a critical analysis for Gooey Babysitters Inc based on our location as well as the scale of our business here in Tampa Bay – Florida in the United states of America.
- First Fiscal Year-: $150,000
- Second Fiscal Year-: $300,000
- Third Fiscal Year-: $600,000
N.B: It should be noted that the above sales projection was done based on what is obtainable in the industry and several other factors as well, such as that there won’t be an economic meltdown that will see more parents losing their jobs and staying at home to take care of their kids.
Also, another assumption is that there would not be the arrival of any major competitor during the above stated period. Should there be any change in the above assumptions, it could lead to an increase or decrease of projected earnings for Gooey Babysitters Inc
- Marketing Strategy and Sales Strategy
Marketing is one of the most important aspects of any business as this is the means by which money is generated for the business. Marketing is also powerful because it reaches all the segments of the intended target audience and has the capability to generate more capital for a business.
This is why serious minded entrepreneurs and business owners usually allot a certain amount of money to take care of the marketing and sales strategy of the company.
To however have effective marketing strategies that would attract customers and generate more revenue for the company, it is vital that a thorough market survey and feasibility studies be carried out that will allow the business understand the market it intends to cater to and then draft the best strategies that would allow for this business to succeed and position it to effectively compete against other brands here in Tampa Bay – Florida as well as all over the United States of America as a whole.
It is to this effect that we sourced for and hired a reputable marketing consultant that thoroughly understands the Tampa Bay area and knows what it will take to draft and develop effective marketing strategies that will win over customers to our business, here in Florida as well as all over the United States of America.
We will also ensure that our marketing executives are well empowered to help deliver our corporate sales goals. Our marketing executives also have the power to modify and change ineffective marketing strategies, whilst making sure that all marketing strategies being used are in line with the corporate goals and objectives of the business.
In summary, we at Gooey Babysitters Inc intend to adopt the following sales and marketing strategies in getting more customers for our business and generating revenue as well;
- Introduce our babysitting business to families, friends, corporate businesses and government agencies.
- Throw a grand opening toddler themed party in order to create awareness about our babysitting business here in Tampa Bay – Florida.
- Buy classified ads in local newspapers and also ensure that we place adverts in motherhood, lifestyle magazines as well as on radio and television stations.
- Use social media platforms such as facebook, Twitter, Instagram and Linkedin to vigorously market our babysitting business.
- Attend events that are centered towards children and toddlers in order to network and gain customers.
- Distribute fliers and handbills in target areas.
- Engage in direct marketing.
- Encourage referrals from loyal customers, family members and friends.
11. Publicity and Advertising Strategy
Having the right publicity especially in our kind of business which is regarded as a sensitive one is very important. Creating publicity ensures that the business gets awareness that will allow it compete effectively with other brands in the industry.
To achieve the best publicity for our business, we intend to ensure that we hire a publicity consultant who has deep knowledge of the market so that all avenues will be used to effectively promote Gooey Babysitters Inc.
It is very important that before going out to create awareness for the business that strategies are drafted. These strategies will determine the most effective routes that will garner the right publicity and make for the brand to grow and gain acceptance in its intended industry as well as outside of it.
Also, the right publicity helps to effectively communicate the brand to the public. Some of the platforms that we will use to boost our publicity as well as advertise Gooey Babysitters Inc are;
- Ensure that we join associations that are relevant to our business and network
- Distribute our handbills and fliers in targeted areas in order to gain more customers
- Advertise our babysitting business in local newspapers, magazines as well as on radio and television stations
- Install flexi banners in strategic locations so as to gain the attention of potential customers
- Use social media platforms such as Facebook, Instagram, Twitter and Linkedin to promote our babysitting business
- Create a blog and release educational materials that will offer information and tips to our intended audience
12. Our Pricing Strategy
Determining the right price for our babysitting business is important to us because while we intend to make our rates very affordable for our target customer, we intend to ensure that the rates are just right for our business as well.
Our charges will also depend on the duration with which we will babysit for ours client and the level of care that will be administered during the babysitting. We however will not be deploying any detailed strategies when it comes to setting the rates for our babysitting business.
Due to the fact that we are relatively new in the business, we intend to give out discounted prices to all our existing and potential customers in order to help create awareness about the business whilst also allowing us to effectively compete with our competitors.
We would offer discount for a period of three months to all our customers but we have also put in place measures that will ensure that we do not run at a loss during this period.
- Payment Options
Due to the different clients that would be patronizing Gooey babysitters Inc, we intend to come up with varied payment options that will suit not only our customers but our business as well. Therefore, the payment options we intend to make available to all our customers are;
- Payment via cash
- Payment via check
- Payment via Credit Card
- Payment via online payment portal
We wish to assure all our customers that the above payment options were deliberately chosen for ease in business transactions.
13. Startup Expenditure (Budget)
Starting a babysitting business and running it to a standard level means that one expects the bulk of the capital to be used in ensuring that the facility is to standard and that the staff are professionals. The bulk of the capital will also go into procuring a fairly used vehicle, paying employees as well as utility bills.
Therefore the key areas that we intend to spend on in starting our babysitting business are;
- Total registration fee for starting a babysitting business in the United States of America – $750.
- Obtaining licenses and permits as well as accounting and other legal services – $1,250.
- Cost of hiring a business consultant – $500.
- Insurance coverage (liability insurance, health insurance, hazard insurance, abuse and molestation coverage as well as worker’s compensation) – $1,500.
- Marketing promotion expenses for the grand opening of Gooey Babysitters Inc as well as for general promotional activities – $3,000.
- Operational cost for the first three months (salaries of employees and payment of bills) – $70,000.
- Start-up expenses including toys, educational materials – $5,000.
- Administrative expenses including stationery, phones, computers, printers and utility deposits – $2,000.
- Cost of purchasing a fairly used vehicle for pick-ups and emergencies – $5,000.
- Cost of leasing a facility (down payment) – $8,000.
- Cost of launching a website – $200.
- Cost of throwing an opening party – $800.
- Miscellaneous – $2,000.
From the above estimate, we would require the sum of $100,000 to successfully launch and run our babysitting business here in Tampa Bay – Florida. It should be noted that the bulk of the generated capital will be used to pay staff salaries and utility bills for at least three months.
Also, part of the capital will go into leasing a facility and acquiring materials that would make the facility conducive for those we intend to babysit as well as purchasing a fairly used vehicle to run errands.
Generating Funding/Startup Capital for Gooey Babysitters Inc. Business
Gooey Babysitters Inc is a family owned business that is owned and run by Mrs. Kim and her daughter Dr. Jenner Karadashian. Since this is a family business, the owners are not looking to take on any private investor that will become an external partner.
This decision will no doubt affect their sources when attempting to generate capital. The areas where we therefore intend to generate capital for our business are;
- Generate part of the start-up capital from personal savings
- Apply for loan from the bank
N.B: It should be noted that we were able to generate the sum of $30,000 from our personal savings and since we were aiming for a start-up capital of $100,000, we had to loan the reminder from the bank. We are therefore at the final stages of obtaining $70,000 from our bank as all papers and documents have been signed and submitted, with the assurance that the money will be credited into our business account sometime this week.
14. Sustainability and Expansion Strategy
Every business depends on certain factors in order to be able to be around for a long time and effectively compete against its competitors. In order for a business to sustain itself, certain factors must be in place such as the competence of the employees, the loyalty of our customers as well as publicity and marketing strategies.
Because we take business structure very seriously, we intend to ensure that we build a business that will survive the test of time. We will make sure that we build the right foundation, structures and processes that will see that we are able to employ dedicated, qualified and competent staff to help us run our business.
We are taking the recruitment processes very seriously because we understand how delicate the babysitting business is. All our staff undergo thorough background checks; this is so that we would be able to raise the confidence of our clients as regards our professionalism and so that we would be able to not only meet but exceed the expectations of our clients.
We know how important customers are to a business and we will ensure that all our clients not only have their expectations met but exceeded. We will offer clients that are very loyal to us discounts at certain points especially those who refer others to us.
We would also offer incentive programs once in a while to potential customers as a way to attract them to patronize our services.
Finally, in order to ensure that we create the right awareness for our babysitting business, we intend to deploy a publicity consultant to help us in drafting the right publicity strategies that would give us the right sort of reputation in the eyes of all our clients (potential and existing) as well as in the industry we intend to be operating from.
We believe that these three factors are highly necessary to help us achieve our intended goal of sustaining and expanding our business.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging/Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress
- Establishing business relationship with vendors – wholesale suppliers/merchants: In Progress
- Purchase of trucks: Completed