Are you about starting a nanny agency? If YES, here is a complete sample nanny agency business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a nanny agency. We also took it further by analyzing and drafting a sample nanny agency marketing plan template backed up by actionable guerrilla marketing ideas for nanny agencies. So let’s proceed to the business planning section.
In our modern world, Nannies are explicitly hired by parents because of the attention and care they provide to the house. When you decide to start a nanny agency, you’re expected to be in charge of finding out an applicants’ background, their work experience and references
You should also understand that the way of making money in the nanny agency business is by collecting a fee each time a nanny is placed with a family using your service. The success of your agency will depend solely on the quality of nannies you organise and their job performance.
Starting a nanny agency business is not a job you do in a day. You should be able to love and enjoy taking care of kids if you really plan to venture into this business, because if you do not have the patience and love for kids, you would soon get fed up. You also need to research the industry thoroughly before you venture into it, and also create a resounding business plan.
On the flipside, creating a business plan may not come too easy because of the deep and technical areas that you have to be knowledgeable about. This is why you can use a business plan template to write yours. Below is a suitable business plan for your Nanny Agency business.
A Sample Nanny Agency Business Plan Template
Table of Content
- 1. Industry Overview
- 2. Executive Summary
- 3. Our Products and Services
- 4. Our Mission and Vision Statement
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 8. Our Target Market
- 9. SALES AND MARKETING STRATEGY
- 10. Sales Forecast
- 11. Publicity and Advertising Strategy
- 12. Our Pricing Strategy
- 13. Startup Expenditure (Budget)
- 14. Sustainability and Expansion Strategy
1. Industry Overview
A nanny is simply described as an individual whose main job is limited to caring for the children. Depending on the ages of the kids and the job description the client wants, which might involve infant and toddler care, mind blowing activities, organising and encouraging play dates, attending story hours, reading books (with or to the children), aiding with homework, going to and from after school activities, watching over and supporting the kids in those activities etc. A nanny has no pronounced description, but is required to look after the kids.
The nanny agency industry has performed well over the past five years, even with a few challenges during the beginning of the said period. But the recent poor economic conditions of some countries of the world force households to reduce demand for professional nannies.
In the coming years, with unemployment rates expected to continue falling while disposable income levels continue to rise, the industry will expect conditions to improve over the coming five years. This is because people are expected to increase their zeal and work time to be able to make more money, leaving their kids in the care of a nanny.
A nanny agency is an easy business anyone can start, as long as you have the relevant passion, training and funding. As the quest to make more money increases with parents, then the need for nanny agencies to help with placing nannies also heightens. That is why investors are starting to invest on the high demand for nannies, to establish even better ones. There are a lot of nanny agencies in America, showing that the industry in this country is still open and booming.
The business is indeed a lucrative one and those who are into the business of establishing them are smiling to the banks every day. Whether small or big one, the truth is that there would always be need for nannies. Starting a nanny agency business may seem hectic but be it a baby or toddler, the nanny business is one business that will continue to soar to a great height.
2. Executive Summary
The Next Door Nanny Inc. is an inspiring nanny agency that provides or places reputable and hardworking nannies to its clients. The Next door nanny Inc. will be concentrating on the upper end of the market: double-income professional parents.
These hardworking parents are clearly eager of their child’s wellbeing and will be willing to pay to have a reputable nanny take care of their kids. With focused training of the staff and innovative learning systems, The Next Door Nanny Inc. is cutting edge in terms of proper childcare. Our distinctive curriculum, coupled with the proper training of our nannies and an outstanding nanny: kid ratio ensures a top shelf service for the children and the parents.
Next Door Nanny Inc. is a client-focused and safety oriented nanny agency that provides broad-based experienced nannies at a reasonable price that won’t in this economic recession dig a hole in the pocket of our clients. We will be offering nanny and maid services to our local, state, national, and multi-national clients and will ensure that we provide nannies and maids who are experienced, hardworking and have a reputable past.
At Next Door Nanny Inc., our client’s best interest is paramount, and everything we do is moved by our zeal and professional ethics. We will be sure that we hire good nannies who are well experienced in the field of childcare and home maintenance.
We will hold ourselves responsible to the utmost standards by ensuring we meet our client’s needs precisely and completely. We will strive to build a near perfect working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients. We will also at all times demonstrate our commitment to sustainability, both individually and as a firm, by totally participating in our communities and encouraging sustainable healthy practices wherever possible.
Next Door Nanny Inc. is founded by Mrs Patricia Njoku and her son Anthony Njoku. The agency will be managed by Mrs Patricia Njoku; she graduated from Abia State University (First Degree in Human Resource management) and has a renowned 30 years experience in the Staffing, Nanny, maids and Gardeners industry.
Mrs Patricia is a Certified Human Resource Analyst (CHRA), a member Chartered Institute of Personnel Management of America and many more. Apart from these educational and work experiences, she’s a core African mother, who gave birth to four children and all are well to do in their area of specialization.
3. Our Products and Services
Next Door Nanny Inc. is going to offer other Nanny related services within the scope of the human resource industry. Our aim of starting our Nanny agency is to earn profits from the industry and we hope to do so within the proximity of the law. Our business offering are listed below;
- Recruitment and training of Nannies
- Offering Nanny services
- Offering Maid services
- Offering Gardener services
- Temporary/Contract Staffing
- Human Resource consulting
4. Our Mission and Vision Statement
- Our mission is to provide professional and trusted Nannies, maids, and Gardeners to Americans, and also create an agency that will provide Nigerians with services like no other.
- Our vision is to provide New Yorkers with astonishing nannies, maids, and Gardeners in a quick and efficient manner. We promise to provide each client with responsiveness and accountability, as if we were providing nannies, maids and Gardeners for our own homes.
Our Business Structure
Successful brands understood that one of the foremost ways of selling a business is by hiring the best hands. We at Next Door Nanny Inc. are striving to be the best, so we also plan to hire the most competent and seasoned employees. It is very important that we do this since we plan to run our agency as the present and future of the Nanny agency. This means that we are looking to have every New Yorkers and Americans asking for our services.
We chose to buy our own business building, instead of having to make do with a leased one. Which is why we have decided to acquire quite a number of employees to be on our pay roll because of our goals and business ideas? Therefore, below is the type of structure we look to build our business on;
- Chief Executive Officer
- A Director
- Recruitment Specialist
- Resource Development and training Manager
- Company Secretary
- Marketing and Sales Manager
- Accounting officer
- Security guard
5. Job Roles and Responsibilities
Chief Executive Officer
- He/she is in charge for providing work direction for the agency
- Charged with building, communicating, and implementing the Agency’s vision, mission, and direction – which also includes leading the achievement and implementation of the all the Agency’s strategy.
- Charged with fixing prices and signing business deals for the agency.
- Responsible for recruitment
- Paying of workers salary
- Signing checks and documents for and on behalf of the agency
- Evaluates the success of the organization
- The Director is charged with managing the daily activities in the Agency
- To make sure that all instructions and guidelines given by the CEO are properly implemented
- Connects with other employees
- Reports back to the Chief Executive Officer
- Sorts out clients complaints and enquiries
- Creates budget and reports for the agency
- It’s in charge of Training and Development in the agency
- Establishes recruiting requirements by understanding the Agency’s plans and objectives
- Build applicant sources by researching and contacting community services, colleges, employment agencies, recruiters, media, and internet sites.
- Determines applicant requirements by studying job description and job qualifications.
- Attracts applicants by placing job advertisements; contacting recruiters, using newsgroups and job sites.
- Determines applicant qualifications by interviewing applicants
- Evaluates applicants by discussing job requirements and applicant qualifications with managers
- Interviews applicants on consistent set of qualifications.
- Manages new employee relocation by determining new employee requirements; negotiating with movers; arranging temporary housing; providing community introductions.
- Improves Agency’s attractiveness by recommending new policies and practices.
- Manages intern program by conducting orientations; scheduling rotations and assignments.
- Avoids legal challenges by understanding current legislation
- Updates job knowledge by participating in educational opportunities
- Accomplishes human resources and Agency’s mission by completing related results as needed.
Resource Development and training Manager
- Understands and assess future and current training needs through job analysis, career paths, annual performance appraisals and consultation with line managers
- Creates an overall or individualized training and development plan that addresses needs and expectations
- Creates a wide variety of training methods
- Conducts effective induction and orientation sessions
- Examines and evaluates training program’s effectiveness, success and ROI periodically and report back
- Manage training budget
- Creates opportunities for ongoing development
- Settles any specific problems and tailor programs as necessary
- Creates a keen understanding of training trends, developments and best practices
- Ensures compliance of the provisions of Companies Law and rules made there-under and other statutes and bye-laws of the company.
- Ensures that business of the company is conducted in accordance with its objects as contained in its memorandum of association.
- Ensures that affairs of the company are managed in accordance with its objects contained in the articles of association and the provisions of the Companies Law.
- Fills of various documents/returns as required under the provisions of the Companies Law.
- Proper maintenance of books and registers of the company as required under the provisions of the Companies Law.
- Produces information by transcribing, formatting, inputting, editing, retrieving, copying, and transmitting text, data, and graphics; coordinating case preparation.
Marketing and Sales Manager
- Achieves marketing and sales human resource objectives by recruiting, selecting, orienting, training, assigning, scheduling, coaching, counselling, and disciplining employees.
- Accomplishes marketing and sales operational objectives by contributing marketing and sales information and recommendations to strategic plans and reviews.
- Meets marketing and sales financial objectives by forecasting requirements.
- Achieves marketing and sales objectives by planning, developing, implementing, and evaluating advertising, merchandising, and trade promotion programs.
- Define marketing opportunities by identifying consumer requirements.
- Build product marketability and profitability by researching, identifying, and capitalizing on market opportunities.
- Give information by collecting, analysing, and summarizing data and trends.
- Protects the Agency’s value by keeping information confidential.
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks.
- Achieve marketing and Agency’s mission by completing related results as needed.
- Charged with preparing financial reports, budgets, and financial statements for the agency
- Gives the management financial analyses, development budgets, and accounting reports.
- Creates financial forecasting and risks analysis for the agency
- Builds cash management, general ledger accounting, and financial reporting for one or more properties.
- Charged with developing and managing financial systems and policies
- Charged with administering payrolls
- Ensures the agency compliance with taxation legislation
- Takes care of all financial transactions for the agency
- Serves as internal auditor for the company
- Welcomes clients on behalf of the agency
- Receives parcels / documents for the agency
- Takes care of enquiries via e-mail and phone calls for the agency
- Charged with distributing mails in the agency
- Charged with protecting the agency and its environs
- Controls traffic and organize parking
- Provide security tips when necessary
- Patrols around the building on a 24 hours basis
- Presents security reports weekly
- Charged with cleaning the agency at all times
- Makes sure that toiletries and supplies don’t run out of stock
- Cleans both the interior and exterior of the agency
- Other duties as assigned by the day care director.
6. SWOT Analysis
Next Door Nanny Inc. was started to compete favourably with other staffing agencies, and to be the leading agency in the nanny agency. We decided to have a test run on the agency for a period of 5 years. In order to ascertain how we are able to cope during this time, and also to decide if we are to put in more resources, additional money, for the development and improvement of the agency.
We plan to start with one agency for now and then understand how we are able to succeed with the current economic climate and competition. We also decided to employ the services of an expert who has helped us by conducting a SWOT analysis.
Conducting a SWOT Analysis was necessary, so as to make sure that we have what it takes to run a nanny agency and even expand. Here is a summary of the result from the SWOT Analysis that was conducted on behalf of Next Door Nanny Inc.;
The strength of Next Door Nanny Inc. rests on the fact that the owner of our agency is well versed in the field of human resources and management, and also the extensive training we give to our nannies. It is really a great advantage for us, because we believe that the nannies we provide we be able to really take care of the kids that are put in our care, unlike some of our competitors who have no relevant knowledge about the industry.
Our major weakness in the industry will be that we are new entrants. It might take time to convince clients to let you provide nannies for them. We plan to make this a minor setback by creating an industry takeover marketing strategies.
To increase our opportunities in the industry, we plan to reduce the fees being paid for the services we provide. With this method, we plan to attract customers under the watchful eyes of our competitors. We also believe that with the quality of our employees and services, we will be attracting clients that would be highly satisfied with our services.
The threats to the agency will include the unfavourable government policies affecting staffing agencies in Nigeria. Another threat may include the arrival of a competitor within our location of operations and the present global economic downturn which is likely to affect spending/purchasing power.
We plan to perform thorough research on our nannies to prevent issues and also inculcate necessary insurances to help the agency. We also plan to review our marketing strategies and create new ones at the beginning of every business year.
7. MARKET ANALYSIS
- Market Trend
In the world today, a lot of parents and guardians need to work almost round the clock in order to earn a living for them and their families. Therefore, there will always be a need for someone to care for the kids while they are at work. That is why there will always be the need to have nannies. Also, the nanny agency industry is not expected to decline any time soon.
The Nanny Agency business is always booming, and has no season or economic constraints. That is why the services we provide to our clients have to be top notch at all times. We do not want to be found wanting in any aspect, which is why we strive to invest a lot in training nannies diligently before placing them to our clients.
Our positioning, as is always the case of determining the amount of customers that patronize a business is of importance to us, which is why we have decided to start our business in Aba.
It cannot be denied that a lot of nanny Agency’s have done well in the past and have also created a brand affinity on the society, but we plan not leave any stone unturned as we strive to work tirelessly on renowned ways to make our services attractive to people. Part of the marketing and sales strategies to be adopted includes;
- Starting our agency with a grand opening. We plan to have a big party where we can invite all and sundry, which includes people in the neighbourhood, individuals, businesses and many more.
- We also plan to make sure all our professional employees are present at the party and if possible show them off.
- We also plan to create awareness and also to give direction to potential clients by sharing leaflets
- We also plan to position our signage and flex banners at strategic places around the neighbourhood.
- We will also our agency on business directories, magazines and yellow pages.
8. Our Target Market
Next Door Nanny Inc. plans to focus on the double income working professional families because they are the part of the population that can actually afford a nanny. They are also the ones who need nannies because of their work obligations, appreciate the advanced services we at Next Door Nanny Inc. has to offer, and lastly are a growing segment of our society.
With both parents working, this particular part of the population needs some sort of provisions for the care of their child. It is believed that over 50% of children are cared by relatives compared to 29% for a Nannies and day cares; our targeted population prefers to have a well trained nanny look after their kids.
Relatives are great for nights out or weekends, but they cannot be compared to a well trained and experienced nanny we at Next Door Nanny Inc. will be providing. Just Nigeria continues to be a country of people working long hours, there will always be the need for a nanny in our society. The routine of longer work weeks is steadily turning into something normal and this will drive us higher.
First and foremost, the area where we have decided to start our agency, have no nanny agency, which is why believe with diligence, and go marketing plans, that we will be able to achieve a favourable success with a few years. Next Door Nanny Inc. competitive edge is envisage in two-fold:
- Result oriented training
Next Door Nanny Inc. has a specialized training program that our nannies, maids and Gardeners are put through so they are proficient at handling any task being put to them. Our employees will also be put through an intensive week long course and only after they scale through the intensive training will they be allowed to work.
- No nanny agency around our vicinity
With our thorough research of our location and the industry, we found out that there are no nanny agencies in Aba, which literally makes us the first nanny agency to take over the market quickly.
9. SALES AND MARKETING STRATEGY
- Sources of Income
The role that money plays in every business cannot be neglected, which is why we are doing all we can to make sure that we source for income in the right places and using the right strategies. Next Door Nanny Inc. is founded with the objective of maximizing profits in the nanny agency industry and we are going to achieve that aim within the proximity of the law in Nigeria.
Next Door Nanny Inc. will generate income by offering the following services for individuals and for organizations:
- Nannies for homes and interested individuals
- Maids for homes and interested individuals
- Gardeners for houses and interested individuals
- Gardeners for organizations
- Offer trainings for maids, Nannies and Gardeners
10. Sales Forecast
We believe that the first two months will be used to renovate the house and bringing it up to specifications, both for the state health and license codes, and also Mrs Patricia’s specifications. During the same period, Mrs Patricia is expected to be finishing up the training program and manuals.
We also believe that the first week of the third month will be used for training of the staff. By the middle of the third month Next Door Nanny will be open for business. It is expected that the agency will be slowly progressing until the eighth month. When we expect that word will have spread and the agency will fully kick off. Below is the sales projection for Next Door Nanny Inc.
- First Year-: $100,000
- Second Year-: $500,000
- Third Year-: $1,000,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
We at Next Door Nanny in., after a number of meetings with our in house advertising experts and other publicity experts, we’ve mapped out publicity and advertising strategies that will aid us get to our targeted audience. Next Door Nanny Inc. is now set to technically take over the nanny agency industry which is why we have made explicit provisions for effective publicity and advertisement of our agency.
- Creating an Agency Website
We all know that technology has changed the way businesses market their products and services. The on-ramp for using technology to boost our Nanny Agency business is also the anchor point for our technological strategy: most businesses have a website, a poorly managed and unnavigable website is worse than creating no web presence at all.
Our website will be designed to serve as a representation of our agency; it will be designed to carry the exact professional appearance and functionality we at Next Door Nanny Inc. are trying to show. We have also decided how to attract visitors to our website we will do that by placing strategic billboards and well designed leaflets.
- Creating a Good Business Sign
Despite the fact that Nanny Agencies are very different from other businesses, signage can be used to communicate the Agency’s value to their customers. Visibility, attractive branding elements and simple direct messages are all factors that we plan to inculcate in our signage. Other strategies may include:
- We will be placing adverts on both print (community based newspapers and magazines) and electronic media platforms
- We will sponsor relevant community programs
- We also plan to make use of the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
- We will be mounting our Bill Boards on strategic locations all around New York and major cities in the Nigeria
- We will also engage in road show from time to time in targeted communities
- We also plan to distribute our fliers and handbills in target areas
- Position our Flex Banners at strategic positions in the location where we plan getting clients to start patronizing our agency.
- Ensure that our nannies are well dressed, even our employees
11. Publicity and Advertising Strategy
Next Door Nanny Inc. has a low budget for publicity and advertising simply because our agency is situated in a place that will be attracting a good number of customers we would need with little or no stress on our own part.
But since we plan to have branches in the near future, we have decided to make budget for publicity and advertisement with the aim of introducing our brand in the market place. Our every strategy will be geared towards communicating our brand. Here are the decided strategies we plan to use in promoting and advertising our agency:
- We plan to place adverts on both print (travel magazines) and electronic media platforms
- We plan to sponsor educational community programs
- We also plan to keeping making use of the internet
- We plan to mount our Bill Boards at strategic locations
- We will be distributing our fliers and handbills in target areas where guardians can be found.
- We will mount our flex Banners at strategic positions around the Ariaria market, shopping centre and all other business units.
12. Our Pricing Strategy
When fixing the prices for our services, we will make sure that we set pricing in line with what is obtainable in the industry. We at Next Door Nanny Inc. understand that we will have to go lower our price so that we will be able to attract customers like never before as we strive to gain recognition as new entrants in the nanny business. When we achieve this primary aim, then we can increase our price knowing that our customers are enjoying our services.
- Payment options
Next Door Nanny Inc. payment policy will be all inclusive because we understand that different people will prefer different payment options as it suits them. Here are the payment options that we plan to make available to our clients;
- Payment by via bank transfer
- Payment via online bank transfer
- Payment to our nannies who are expected to remit the agency
- Payment via check
- Payment via bank draft
- Payment with cash
In view of the above, we’ve decided to open a corporate current account in two Nigerian banks (First Bank and diamond bank) and all our account numbers will be made available to our clients on request.
13. Startup Expenditure (Budget)
Starting a nanny agency business is cost effective; this is so because, we need to make plans and also make sure everything necessary for the success of the agency is put in place. The cost of the necessary things we need to start up is almost the same in any part of the country, and any change in these prices can be overlooked.
But the cost of these tools might differ greatly in other countries due to currency values. Basically, these are the area we are looking towards spending our start – up capital on;
- Incorporating the Business in Nigeria – N75, 000
- Our budget for agency insurance, permits and license – N250, 000
- Purchasing our business building in the business layout of Aba (Re – Construction of the facility inclusive) – N2.5 million
- Cost for equipping the office (computers and printers, furniture, telephones, filing cabins, safety gadgets and electronics et al) – N300, 000
- Website budget– N10, 000
- Budget for paying the salaries of at least two employees for 3 months and utility bills – N1 million
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – N100, 000
- Miscellaneous – N100, 000
With this research and feasibility studies, we will need about N4,335,000 to set up a large scale nanny agency in Aba, Abia State Nigeria.
Generating Funding/Start up Capital for Next Door Nanny
Next Door Nanny Inc. is going to begin as a private business that will be solely entirely owned by Mrs Patricia and family. The Njoku family will be the sole financial of the agency, but may consider allowing partners later which is the reason why we have decided to conserve the sourcing of his start – up capital to 3 major sources. These sources may include;
- Raising part of the start – up capital from personal savings
- Acquire soft loans from family members and friends
- Sourcing for loan from my Bank
N.B: The Njoku family have been able to generate N3 million (Personal savings N2.5 million and soft loan from family members N500, 000) and now we are almost done with obtaining a loan facility of N1.5 million from First Bank Nigeria. The loan is expected to be given any time from now because all required documents have been duly signed and submitted.
14. Sustainability and Expansion Strategy
The success of any business relies on consistent customers, thei management’s investment strategy and the business structure. If a business (company) lacks all these things, then it will shut down in a matter of time. Next Door Nanny Inc. was established with the goal of building a business that will survive with the cash flow it generates, avoiding the need to add finance from external sources. We hope to implement customer loyalty programs in the nearest future and offer our customers excellent services and good nurtured nannies.
Next Door Nanny Inc. will strive to lay the right foundation, business structure and processes that will ensure that our staff welfare is well considered and taken of. As a matter of fact, profit-sharing arrangement will be made available to all our staff and only their performance within a period of 10years will determine what they get.
We have decided to start our first agency in a less competitive location like Aba, to give us the platform to create domineering brand awareness. We have plans to extend our agency to other locations in years to come. It is very important that we do not allow our standard operating process to drop so that we do not pursue our loyal customers.
- 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
- Leasing of a facility and renovating the facility as well: In Progress
- 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 Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: 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 of cooking gas: In Progress
- Purchase of delivery truck: Completed