In the past, babysitting has been associated with hiring a local teenager to help watch the children while mom and dad spend the night out. However, as more and more women join the workforce, babysitting services are now designed to provide full-time care for children during the day while parents pursue their careers. They have also evolved from small operations to more comprehensive, professional childcare services. These babysitting agencies adhere to regulations set forth by government, and are bonded and insured to protect against liability claims. Due to the growing number of households where both parents maintain jobs, starting a babysitting service can be a profitable venture. Here are some tips on how to start a babysitting service:
Start with a Business Plan
Like any successful corporation, a strong babysitting service begins with a detailed business plan. Unlike a traditional business, however, the initial overhead expenditures are very low. You will simply need to set aside money for sitters, insurance, and marketing. On the other hand, even the cost of advertising is diminished due to modern technology and social media. Write up a draft of your various objectives and start-up costs and determine how many clients you will need to make the business profitable.
You will also need to fill out the appropriate paperwork with your state’s Department of Business and Regulation. You must decide on whether you with to be a full or Limited Liability Corporation (LLC). In all likelihood, you would begin as an LLC until you can fully establish yourself as a business. Once you have jumped through the necessary legal hoops, you must find an insurance company to cover your business. The fact that your sitters will be caring for children means that insurance is not only necessary, but mandatory in most states.
Babysitters
You likely already have a few sitters in mind. Nevertheless, in order to meet the needs of your clients, you will likely need to contract at a minimum five reliable babysitters. This will allow you to be flexible and promote growth. Once your client base increases, you can then look to hire more caregivers. Remember to vet each candidate thoroughly during the interview process. Look for signs that their desire to work with children is real and not purely financially motivated. An educational background in child care is preferred, but not necessary. Sometimes childcare providers have family experience growing up in large households, and can provide detailed examples of how they handled difficult situations. Avoid anyone with a cynical temperament. Caring for children requires constant energy and positivity.
Setting Rates
Most babysitting services set a rate for their clients and give a percentage of that rate to the babysitter. As each sitter will have a unique set of qualifications, you may choose to have varying rates or simply increase the babysitter’s percentage. The standard wage is 60 percent of the rate you charge clients. If you have a good sitter, remember to be fair, as they are the ones doing all the work.
Contracts
Having a written contract shows professionalism and legally ensures that you will provide the service that your clients are looking for. Contracts also protect your business by outlining the responsibilities, boundaries, and limits of the care, which prevents confusion for both parties.
Marketing
Promotion is the most vital component of any new business. As your clients will be primarily young parents, it is important to take advantage of social media outlets and promote via Facebook and Twitter in addition to online listings such as craigslist. List your business with Google and Yahoo to show up on local search queries. However, don’t forget to take advantage of traditional marketing techniques, such as door to door flyers and church bulletin boards.
Author: Joan Stevens writes on behalf of PublicLiabilityInsurance.org an online resource for business owners providing public liability insurance for nannies.
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