How to Run a Nanny Agency

Nanny agencies are often necessities for working parents and for nannies in search of employment. Running such a business can be profitable and satisfying. There is much to consider as an agency manager aside from the primary task of matching families with caregivers. You must run the business from top to bottom. Learn what it takes before starting or taking over a nanny agency.

Things You'll Need

• Fax machine and copier
• File cabinet

Instructions

1. Maintain set office hours and provide an emergency relay to reach you during off hours in the event of a crisis. One of the responsibilities of running an agency is being "on call" to your families and nannies. Screen the calls with voicemail, but make sure it alerts you immediately in case your response in required right away.

2. Keep an organized office. You'll need a filing system with family and nanny information kept both electronically as well as in hard copies. Display your operating license prominently. Keep a working computer, fax machine, copier and phone system as you'll need them.

3. Screen prospective nannies thoroughly. When taking on a nanny, you'll need to perform an interview, check references, run a background check and set up a drug test through a security company. It's your job to make sure the nannies you send to clients are trustworthy and capable. Obtain information regarding availability and whether they'll consider a live-in situation.

4. Interview prospective families in search of nannies. Run background checks on families as well as nannies to help ensure a nanny's well-being in a home. Have parents detail their expectations, including whether they're looking for a full- or part-time nanny, a live-in situation, work hours, salary offered and whether light housekeeping and/or cooking will be required.

5. Keep a file on each nanny with a copy of picture identification, contact information, resume with references, background check document and negative drug screen information. Keep a file on each family as well, with contact information, the date you took them on, and the number and ages of their children.

6. Conduct a compatibility pairing of families with nannies. Do your best to generate successful match-ups, but beware it may not always work out. Once a match is made, meet with parents to answer questions. Be prepared to explain the tax implications of taking on an employee, health care for the nanny and how salary will be paid. Although your job is only to make the matches, you'll be expected to help with guiding families and nannies through the hiring process.

7. Decide if you'll offer any type of backup service for emergencies. Nannies call in sick like everyone else, and parents may look to you for a temporary replacement. It's generally best to network with a babysitting agency in this case so you can refer harried parents and not have to provide a sitter yourself.

8. Collect fees from parents (and nannies too if you're charging them for your services). Keep accurate records of your income as well as your outgoing expenses. Hire an accountant to prepare your taxes if you're not comfortable doing this yourself.

Tips & Warnings

• Invest in creative marketing to keep your agency growing.

• When your agency reaches a certain size, consider hiring an office employee to help manage the business.