Do you want to start a nanny placement agency from scratch? If YES, here is a complete guide to starting a nanny agency business with NO money and no experience plus a sample nanny agency business plan template.
Starting a nanny agency business is one sure way an aspiring entrepreneur with the required skills and qualifications can earn cool cash in the united states of America and of course in most developed countries of the world. The reality is that the nanny agency services business is one of the businesses that an entrepreneur can start small and perhaps with a functional home office and make a success out it.
At the same time, established entrepreneurs can also leverage on the high demand for nannies by larger households in highbrow areas to set up their own well-organized nanny agency services business in strategic locations within a residential or business district in the United States of America.
It is important to state that no matter the type of business you choose to start, before launching the business you should ensure that you carry out market research, economic and cost analysis and of course feasibility studies. If you get things right before launching your nanny services business, it would not take you long before you secure enough corporate clients and start smiling to the bank.
If indeed you have the desire to start your own nanny agency services business, all you need do is to read this article and you will be well informed and equipped.
Steps to Starting a Nanny Placement Agency Business
1. Understand the Industry
A nanny who is also known as a child-minder, child care provider or mother’s helper, is an individual who provides care for one or more children in a family as a service. Usually nannies are servants in large households and reported directly to the lady of the house.
The Maids, Nannies and Gardeners industry is made up of private households that employ workers for activities primarily related to operating a household. Chefs, maids, nannies, butlers and outside workers such as gardeners, caretakers and other maintenance workers are also part of the industry.
If you are a close observer of the Maids, Nannies and Gardeners industry, you will agree that the industry has performed pretty well in recent time after facing a few challenges during the beginning of the millennium. The first half of the period was especially difficult as poor economic conditions forced households to reduce demand for professional nannies and maids.
Going forward, with unemployment rates forecast to continue falling while disposable income levels continue to rise, conditions of the Maids, Nannies and Gardeners industry are expected to improve.
The Maids, Nannies and Gardeners industry is indeed a large industry and pretty much active in most countries of the world and countries such as United States of America, United Kingdom, Germany, France, Italy, Holland, Switzerland, Australia and Canada et al are highly profitable destinations.
Statistics has it that in the United States of America alone, there are about 652,985 registered and licensed maids, nannies and gardeners agencies scattered all across the United States responsible for employing about 758,944 and the industry rakes in a whooping sum of $18 billion annually.
The industry is projected to grow at 4.1 percent annual growth within 2011 and 2016. It is important to state that there are no establishments in this industry that has a lion market share.
A recent report published by IBISWorld shows that the regions with the greatest concentration of industry participation include the Southeast, West, Mid-Atlantic and Great Lakes. The report further stated that the distribution of industry employees is based on the number of households and median income levels by region.
For that reason, the concentration of establishments varies according to population distribution, with the most heavily populated areas corresponding to the areas with the highest number of industry employees.
Just like any other business, the demand for nanny agency services usually decline during recession period/economic downturn and this is due to the declining household spending on nanny and maid services and reduced demand from business clients.
As the economy grows and income increases, there will be corresponding increase in the demand for nanny and maid related services such as nanny agency services.
The nanny and maid services industry will continue to blossom because households will not relent in ensuring that their toddlers are taken care of and their home is in tip – top shape and errands are effectively carried out. Despite the fact that the industry seems over – saturated, there is still room big enough to accommodate aspiring entrepreneurs who intend opening their own nanny agencies.
Some of the factors that encourage entrepreneurs to start their own nanny agency services company are that the business is a thriving business and it is easy to set up and can be managed with minimal startup capital.
2. Conduct Market Research and Feasibility Studies
- Demographics and Psychographics
The demographic and psychographic composition of those who hire the services of nanny and maid agencies cut across all households and corporate organizations both big and small that have the capacity to pay for their services hence the demographic composition for a nanny and maid agency business is all encompassing.
The truth is that when it comes to nanny agency services, there is indeed a wide range of available customers. In essence, your target market can’t be restricted to just households within your location, but should extend to all the corporate organizations and businesses around the city where you have your business presence and who can afford your services.
So, if you are tinkering with opening your own nanny agency services business, then you should make target demographics all encompassing. It should include households, corporate organizations, medium scale and small scale organizations in the city where your nanny agency services business is located.
3. Decide Which Niche to Concentrate On
There is no niche area in the nanny agency business, every player in the industry simply assist their clients in recruiting and screening nannies, maids, housekeepers, gardeners, chefs and other domestic staff.
So, if you are looking towards starting your own nanny agency business, then you should clearly define your market so that you will be able to know how to supply nannies, maids, housekeepers, gardeners, chefs and other domestic staff to them.
The Level of Competition in the Industry
The competition that exist in the nanny agency line of business goes beyond competition amongst nanny agencies in your location; you are expected to compete with other businesses in the nanny, gardeners and maid services industry who have the capacity to supply domestic staff to clients.
So, it will be right to say the competition in the nanny agency of business is tough. The truth is that no matter the level of competition in an industry, if you brand and promote your services or business properly, you will always make headway in the industry.
Just ensure your workforce can carry out thorough recruitment of maids, nannies, chefs, gardeners and other domestic staff, you can deliver excellent customer care services, you know how to attract reliable and competent domestic staff and also how to reach out to your target market.
There are several nanny agencies and other related maid services businesses scattered all around the United States, so if you choose to start your own nanny agency in the United States of America, you will definitely meet stiff competition amongst them.
Besides, there are larger nanny agencies that determine the trends in the industry and you should be ready to compete with them for customers.
4. Know Your Major Competitors in the Industry
In every industry, there are always brands that perform better or are better regarded by customers and the general public than others. Some of these brands are those that have been in the industry for a long time, while others are best known for how they conduct their business and the results they have achieved over the years.
These are some of the leading nanny agencies and other related maid services companies in the United States of America and in the globe;
- Nanny Poppinz Agency San Antonio TX
- American Nanny Co Inc
- Global Nannies & Caregivers Agency Ltd
- Nannies & Housekeepers USA
- Excellent Nanny Services
- Nanny Authority
- British American Household Staffing
- American Professional Nannies
- All Best Nannies
- Au Pair in America, Amy Hertz
- Absolute Best Care Nanny Agency
- Nanny Poppinz of West Orlando
- MoniCare Nannies and Household Staffing, Inc.
- My Sweet Nanny Agency
- Absolute Best Care Nanny & Baby Nurse Agency
- Notable Nannies agency
- Westside Nannies
- Jack and Jill Nanny Agency
- Global Nannies & Caregivers Agency Ltd.
The nanny agency business is not a Green business; as a matter of fact, you will come across several nanny agencies and other maid related service companies when you drive through town, search through directories and browse through the internet.
So, if you are mapping out your economic and cost analysis, you should carry out thorough market survey and costing of what is required to rent a space where you are expected to open your nanny agency business and the amount required to purchase office gadgets and furniture and also the cost to successfully run the business.
Over and above, if you are considering starting a nanny agency, then your concern should not be limited to the cost of renting an office space and purchasing office gadgets and furniture but also on branding and on how to build a robust clientele base.
5. Decide Whether to Buy a Franchise or Start from Scratch
If you are looking towards starting a nanny agency business, you would have to start from the very scratch because even if you get a franchise of a nanny agency to buy, it might be way off your budget and the brand might not be marketable in your location.
Besides starting a nanny agency from the scratch is less stressful when compared to other small scale businesses which usually require detailed groundwork before launching the business.
With a nanny agency business, you should just try as much as possible to get the right employees, tools and equipment, build business relationship with key stakeholders and then leverage on every marketing tool within your disposal especially the internet to market your services.
Please note that most of the big and successful nanny agencies around started from the scratch and they were able to build a solid business brand.
It takes dedication, hard work and determination to achieve business success and of course you can build your own nanny agency brand to become a successful brand with corporate and individual customers in your city and from all across the length and breadth of the United States of America.
6. Know the Possible Threats and Challenges You Will Face
If you decide to start your own nanny agency services business today, one of the major challenges you are likely going to face is the presence of well – established nanny agencies and other related maid services companies that also supply domestic staff. The only way to avoid this challenge is to create your own market.
Some other challenges and threats that you are likely going to face are economic downturn; if the economy is in bad shape, history has it that businesses such as the nanny agency services business and any other maid related services usually struggle to maintain their old customers or even welcome new customers.
So also, unfavorable government policies can also hamper the growth of your nanny agency services business. There is nothing you can do as regard these threats and challenges other than to stay positive that things will work well for you.
7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)
You have the option of either choosing a general partnership, limited liability company which is commonly called an LLC, or even a sole proprietorship for a nanny agency services business.
Ordinarily, sole proprietorship should have been the ideal business structure for a small – scale nanny agency services business especially if you are just starting out with a moderate startup capital in a small neighborhood and with just one outlet.
But people prefer limited liability Company for some reasons. If your intention is to grow the business and have offices and corporate clients all across key cities in the United States of America and other countries of the world via franchising, then choosing sole proprietorship is not an option for you. Limited Liability Company, LLC or even general partnership will cut it for you.
Setting up an LLC protects you from personal liability. If anything goes wrong in the business, it is only the money that you invested into the limited liability company that will be at risk. It is not so for sole proprietorships and general partnerships.
Limited liability companies are simpler and more flexible to operate and you don’t need a board of directors, shareholders meetings and other managerial formalities.
These are some of the factors you should consider before choosing a legal entity for your nanny agency services business; limitation of personal liability, ease of transferability, admission of new owners, investors’ expectation and of course taxes.
8. Choose a Catchy Business Name
When it comes to choosing a name for your business, you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents. Usually it is the norm for people to follow the trend in the industry they intend operating from when naming their business.
If you are considering starting your own nanny agency services business, here are some catchy names that you can choose from;
- Madam Lucy® Nanny and Maid Agency Services, LLC
- Mo Town® Nanny Agency Services, LLC
- Clara Jackson© Nanny and Maid Services, Inc.
- Kings Court® Nanny and Maid Services Company, Inc.
- Monica Granville™ Nanny and Maid Services, Inc.
- Theresa Brown® Nanny and Maid Services, Inc.
- Clear Whyte© Nanny and Maid Services, Inc.
- Maureen Liverpool® Nanny Agency Services, LLC
- Fidel Dwayne© Nanny Agency Services, Inc.
- Safe Hands© Nanny and Maid Services, Inc.
9. Discuss with an Agent to Know the Best Insurance Policies for You
In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from. So, it is important to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your nanny agency services business.
Here are some of the basic insurance covers that you should consider purchasing if you want to start your own nanny agency services business in the United States of America;
- General insurance
- Health/Medical insurance
- Liability insurance
- Workers Compensation
- Overhead expense disability insurance
- Business owner’s policy group insurance
- Payment protection insurance
10. Protect your Intellectual Property With Trademark, Copyrights, Patents
If you are considering starting your own nanny services business, usually you may not have any need to file for intellectual property protection/trademark. This is so because the nature of the business makes it possible for you to successfully run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
But if you just want to protect your company’s logo and other documents or software that are unique to you or even jingles and media production concepts, then you can go ahead to file for intellectual property protection. If you want to register your trademark, you are expected to begin the process by filing an application with the USPTO.
11. Get the Necessary Professional Certification
Aside from the results you produce as it relates to recruiting/supplying nannies and other domestic staff to your customers, professional certification is one of the main reasons why most nanny and maid services stand out. If you want to make an impact in the nanny and maid services industry, you should work towards acquiring all the needed certifications in your area of specialization.
Certification validates your competency and shows that you are highly skilled, committed to your career, and up-to-date in this competitive market. These are some of the certifications you can work towards achieving if you want to run your own nanny agency;
- Childcare Certifications – The Nanny Academy
- INA Nanny Credential Exam – International Nanny Association
- Certified Nanny (PNCN)
- Connection Centered Discipline Nanny Certification
- Infant and Child Care Specialist
- Certified Professional Governess or Certified Professional Nanny
Please note that you can successfully run a nanny agency in the United States and in most countries of the world without necessarily acquiring professional certifications and business license as long as you have adequate experience cum background in the nanny and maid services industry.
12. Get the Necessary Legal Documents You Need to Operate
These are some of the basic legal documents that you are expected to have in place if you want to legally run your own nanny agency services business in the United States of America;
- Certificate of Incorporation
- Business License
- Tax Payer’s ID/Tax Identification Number
- Health inspection Certificate
- Business Plan
- Contract Document
- Non – disclosure Agreement
- Employee Handbook
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Company Bylaws
- Memorandum of Understanding (MoU)
- Building License
- Franchise or Trademark License (optional)
13. Raise the Needed Startup Capital
Starting a nanny agency services business can be cost effective if you choose to start on a small scale by running the business from your home or sharing office space. Securing a standard office space in a business district and purchasing office gadgets and furniture et al are part of what will consume a large chunk of your startup capital.
If you choose to start the business on a large scale, you would need to go source for fund to finance the business because it is expensive to start a standard large scale nanny agency services business. Here are some of the options you can explore when sourcing for startup capital for your nanny agency services business;
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell of shares to interested investors
- Applying for Loan from your Bank
- Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
- Source for soft loans from your family members and your friends
14. Choose a Suitable Location for your Business
When it comes to choosing a location for your nanny agency services business, you can choose to locate it in any location of your choice especially if you are offering basic home nanny and maid supply services, services that do not require your clients to come to you except for meetings.
But over and above, the location you chose to open your nanny agency is key to the success of the business; hence entrepreneurs are willing to rent or lease a facility in a visible location; a location where the demography consists of household and growing families with the required purchasing power.
If you make the mistake of renting or leasing a facility for your nanny agency services business in a not too visible or hidden location simply because it is cheap, then you must be prepared to spend more in promoting the business and perhaps giving direction to potential customers.
These are some of the key factors that you should consider before choosing a location for your nanny agency services business;
- The demography of the location
- The demand for nanny and maid services in the location
- The purchasing power of households in the location
- Accessibility of the location
- The number of nanny agencies and other maid service companies that also offer the same services in the location
- The local laws and regulations in the community
- Traffic, parking and security
15. Hire Employees for your Technical and Manpower Needs
On the average, there are no special technologies or equipment needed to run an average nanny agency except for computers/laptops, internet facility, telephone, fax machine and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.
As regards leasing or outright purchase of an office facility, the choice is dependent on your financial standing, but the truth is that to be on the safe side, it is advisable to start off with a short – term rent/lease while test running the business in the location.
If things work out as planned, then you go on a long – term lease or outright purchase of the property but if not, then move on and source for other ideal location/facility for such business.
When it comes to hiring employees for a standard nanny agency services business with plans to have corporate clients all across major cities in the United States of America, you should make plans to hire a competent Chief Executive Officer (you can occupy this role), Admin and Human Resources Manager, Recruitment Specialist, Sales and Marketing Officer, Accounting Clerk, and Nannies, Maids and Housekeepers.
These are some of the key employees that you can work with. On the average, you will need a minimum of 5 to 10 key staff members excluding nannies and other domestic staff to run a small – scale but standard nanny and maid agency services.
The Service Delivery Process of the Business
Usually, when a nanny and maid service gets a contract from a corporate organization or household to handle their nanny and maid services (either one – off or long – term contract), they will first conduct cost analysis to know the appropriate manpower and resources needed to carry out the job.
Once they conclude their cost analysis, then they will deploy the required manpower to execute the job and then they will get paid after successfully carrying out their job. Usually their services include general services like nursing babies and toddlers, cleaning, floor polishing, lawn mowing, cooking, home maintenance, shopping, laundry, washing dishes, taking out trash after dinner and bill payment et al.
It is important to state that a nanny agency services may decide to improvise or adopt any business process and structure that will guarantee them efficiency and flexibility, the above stated nanny agency services business process is not cast on stone.
16. Write a Marketing Plan Packed with ideas & Strategies
Generally, running a business requires that you should be proactive when it comes to marketing your goods or services. If you choose to launch a nanny agency services business, then you must go all out to employ strategies that will help you attract customers or else you will likely struggle with the business because there are well – known brands that determine the market direction for the nanny and maid services industry.
People and organizations will hire your services (nannies and housemaids) if they know that they are going to get value for their money.
As a matter of fact, your marketing strategy should center on reliability, swiftness, safety, pricing, thoroughness, and above all excellent customer service. You should ensure that whenever your customers hire your services (nannies and housemaids), they would get excellent service.
The truth is that if you are able to put the above stated in place, you won’t struggle to retain your old customers and at the same time win over new customers.
Businesses these days are aware of the power of the internet and they do all they can to maximize the internet to market their services. In other words, a larger percentage of your marketing effort should be directed to internet users; your website should be your number one marketing tool.
These are some of the marketing ideas and strategies that you can adopt for your nanny agency services business;
- Introduce your nanny agency service by sending introductory letters alongside your brochure to households, estate managers, corporate organizations, small scale businesses, medium scale businesses and other key stakeholders throughout the city where your nanny agency services is located.
- Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across, so that those on social media or those who read blogs will know who to call when they need nanny agency services within your location
- Create a basic website for your business so as to give your business an online presence
- Directly market your services
- Engage in roadshows in targeted business communities from time to time to promote your nanny agency services business
- Join local nanny agency services business associations for industry trends and tips
- Join local chambers of commerce and industry with the aim of marketing your services
- Advertise your business in community based newspapers, local TV and radio stations
- List your business on yellow pages ads (local directories)
- Encourage the use of Word of mouth marketing (referrals)
17. Brainstorm Possible Ways to Retain Clients & Customers
When it comes to business, no matter the industry that you choose to pitch your tent in, one of the easiest ways to increase customer retention and perhaps attract new customers is to satisfy your customers always. If your customers are satisfied with your products and services delivery, they can hardly source for alternative service provider or products.
One of the strategies that you need to employ in order to generate repeated sales from your customers and also to retain them is to ensure that your housekeepers/housemaids are always on time and your customer services does not fluctuate.
The truth is that if your services and customer service fluctuates, you are likely going to struggle to get your customers coming back. You can also make use of promotional ideas such as loyalty schemes, direct marketing, and door drops. Ensure that you offer your customers’ incentives if you want to retain them, continue to generate repeated sales from them and also attract new customers.
Part of what you need to do to achieve this is to track progress, results or outputs with the aim of improving on them quickly as the case demands. When it comes to managing your customers and building loyal clientele base, you should purchase a customized CRM software.
With a customized CRM system, you can easily stay in touch with your clients (you can carry out quick survey, you can introduce new products and prices to them without any hitch, you can felicitate with them on their birthdays and other anniversaries, you can keep track of their progress, you can send bulk sms and customized e – mails and above all, you can easily receive compliant and feedback from them).
18. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
If your intention of starting a nanny agency services business is to grow the business beyond the city where you are going to be operating from to become a national brand by opening offices all across key cities in the United States and franchising, then you must be ready to spend money on promotion and advertisement of your brand.
No matter the industry you belong to, the truth is that the market is dynamic and it requires consistent brand awareness and brand boosting cum promotion to continue to appeal to your target market. Here are the platforms you can leverage on to boost your brand awareness and create corporate identity for your nanny agency services business;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events
- Leverage on the internet and social media platforms like Instagram, Facebook, Twitter, YouTube, Google + et al to promote your nanny services business
- Install your billboards in strategic locations all around your city or state
- Engage in roadshows from time to time in your targeted business district to create awareness for your nanny agency services business
- Distribute your fliers and handbills in target areas
- Contact households, assisted living facilities, corporate organizations, small scale businesses, medium scale businesses and other key stake holders throughout the city where your nanny agency service is located informing them about your nanny agency and the services you offer
- List your nanny agency in local directories/yellow pages
- Advertise your nanny agency in your official website and employ strategies that will help you pull traffic to the site
- Position your Flexi Banners at strategic positions in the location where your nanny agency is located
- Ensure that all your staff members wear your branded shirts and all your carts, vehicles, trucks and vans are branded with your company logo
19. Create a Good Suppliers / Distribution Network
In order to successfully run a nanny agency services business, you must establish a good business relationship with estate managers and landlord associations within the city where your nanny agency is located. You would need steady request for nannies and maids from household in order to remain in business.
So also, you are expected to create business networks with managers of residential estates. They are in a better position to give you corporate nanny agency services contracts. Depending on your agreement with them, you might be compelled to pay certain fee or commission.