How to Start Up a Nanny Referral Agency

Parents and caregivers hire nannies to provide childcare for their children. Hiring the best person for this position is important to the parent and the child. Finding that person is possible with the assistance of a nanny referral agency. If you start a nanny referral agency your services would include screening nannies, speaking with the families to discuss their needs, and connecting the two. Enjoy a flexible schedule and comfortable working conditions; start your business from home full-time or part-time.

Things You'll Need

• Computer
• Internet
• Printer
• Paper
• Telephone

Instructions

Preparation

1. Obtain business licenses. Contact your local city hall's business division for instructions on obtaining a business license if you are operating within your city limits. When doing business within your county limits, contact your local county's business registration department. When operating under any name, with the exception of a sole proprietorship using your own true name, you need to register your business with your state's office. Contact the corporations division of your secretary of state's office.

2. Create a simple client application. Potential clients need to complete an application in order for you to match them to a nanny. The application should request the following information:
   Parent(s) or caregivers full contact information; names and ages of the children to be cared for; any special requirements the child may have; what type of nanny they are seeking; preference among permanent nanny (hired to work over 90 days), temporary nanny (hired to work between 1 to 90 days), full-time nanny (works over 24 hours weekly), part-time nanny (works less than 24 hours weekly); description of the duties and responsibilities expected of the nanny; and live-in nanny living conditions to be provided, if applicable.

3. Create a simple client contract. Include a nanny placement fee that is charged to your client, the parent(s) or caregiver. Consider using the following types of fee structures:
   Permanent full-time nanny -- $2,000 to $2,500
   Permanent part-time nanny -- $1,000 to $1,500
   Temporary full or part-time nanny -- $25 per day

4. Start advertising. Design a simple flier offering your services. Hang fliers on free bulletin boards located in places such as libraries, grocery stores, and laundromats. Also, place an ad in the childcare section of your local paper offering your nanny referral service. Consider placing free ads online at places such as craigslist.com.

Begin Business

1. Place small classified ads. Find potential nannies by placing a help wanted ad in your local paper or online. Consider posting ads on high-traffic sites such as craigslist.com. Request a resume with references.

2. Interview the candidates. Conducting interviews properly is an important factor in finding suitable nannies for your clients. Consider using the following guidelines when interviewing potential candidates:

   Must be a U.S. citizen;
   Have two or more years in the child care industry;
   Possess a valid driver's license with no offenses;
   Possess a First Aid certificate including CPR;
   Willing to complete a background check and fingerprinting;
   Possess a minimum of three references;
   Must be in good health, both physically and mentally;
   Ability to work well with children and provide a caring environment;
   If the applicant is seeking full-time or part-time work;
   Whether or not the applicant is seeking temporary or permanent work.

3. Conduct client interviews. Upon receiving initial contact with a potential client set up an interview, proceed with the application and contract, determine their needs, and discuss any other relevant issues. Also, discuss typical compensation for nannies. Nannies who do not live in the home are usually paid per hour. The hourly rate is determined by how many children the nanny is watching. Nannies caring for one child may receive $15 to $20 per hour; each additional child is $5 more. Live-in nannies generally have a monthly salary of $1,800 to $2,800 depending on the extent of work and number of children.

Tips & Warnings

• Be sure to check with local, state, and county agencies for any business licenses that may need to be obtained.

References

• Nanny.org