Wondering how to start a nanny referral service? We take you step-by-step from start to success.
Determining the Scope of Your Nanny Referral Service
Nanny referral services play the role of an intermediary, connecting qualified nannies with clients in need of quality long- and short-term childcare services. The first step in launching a successful nanny referral service is to determine where your business will operate and the services you will offer your clients.
Geographic reach is a primary consideration for any new nanny referral company. Many nanny referral startups limit their reach to a specific region or geographic territory; others take a broader approach to the marketplace, using web-based resources to reach clients across the nation.
Additionally, some nanny referral services focus exclusively on long-term nanny scenarios while other also offer referrals for one-time or recurring babysitting. As you plan your startup, keep in mind that the more focused your nanny referral is, the deeper you will be able to go in your target market.
The Difference Between Nanny Agencies & Nanny Referral Services
From the outset of the planning process, it's important to maintain a clear distinction between your nanny referral service and nanny agencies. While nanny agencies often employ nannies to be contracted out to clients, nanny referral services are essentially brokers who receive a finders' fee – your clients will hire your nannies directly, assuming primary responsibility for tax reporting and other HR requirements.
Although the distinction creates a buffer between your business and employee liabilities, your startup will still be responsible for creating a safe work environment by performing background checks and verifications on both your nannies and your clients. As an added protection, it's critical to have a business liability insurance policy that shields you and your business from litigation.
Customer Service Advice for New Nanny Referral Businesses
It's not uncommon for nanny referral service providers to be de facto mediators between nannies and their employers, especially if they have facilitated the relationship. But even if employment problems don't arise, it's mission critical for startups to have good customer service skills since current clients are a marketing asset for future referrals and satisfied customers will likely return to your company for future placements.
Participation in organizations like the International Nanny Association can provide access to customer service strategies and serve as a gathering place to swap tips with your peers. Just as importantly, it communicates that you take your job seriously, going the extra mile to serve your clients and prospective nannies in a highly professional manner.
Successful Business Plans for Nanny Referral Services
How good is your nanny referral service's business plan? If you aren't completely confident in the quality of your business plan, it could be because you haven't invested enough time and effort in its creation.
At the end of the day, your nanny referral service can't afford to skate by with an inferior business plan. Why? Because there are a multitude of reasons why your company can't succeed without a sound business plan.
From a business ownership perspective, that makes business planning your first priority - and not a task that can be assigned to the back burner.
Well in advance of opening a nanny referral service in your area, it's worthwhile to find out how you will fit in the competitive landscape. We've provided the link below to help you generate a list of competitors in your area. Just enter your city, state and zip code to get a list of nanny referral services in your community.
If there's too much competition, it may be wise to consider starting the business in a less competitive marketplace.
Finding a Non-Competitive Business Mentor
After you've evaluated your local competitors, the next step is to learn as much as you can from somebody who is already in the business. If you think owners of nearby nanny referral services will give you advice, think again. Why would they want to educate a future competitor?
On the other hand, an individual who has a nanny referral service in a different city will be much more likely to talk with you, provided that you won't be directly competing with them. In that case, the business owner may be more than happy to discuss the industry with you. Our estimate is that you may have to contact many business owners to find one who is willing to share his wisdom with you.
How does one quickly and easily locate a nanny referral service manager in another community?
Here's one way to do it. Just use our link below, find somebody and call them.
Business Brokerage for Nanny Referral Service Entrepreneurs
Sooner or later, every entrepreneur confronts the choice to start a business or buy an established company. For nanny referral service entrepreneurs, there are many reasons why a purchase is more logical than a startup.
A qualified business brokers can provide a range of services designed to ease your transition into business ownership.
The best business brokers will ensure that you get the right business for the right price, and will help you avoid common nanny referral service acquisition mistakes.
Consider Buying a Franchise
As an entrepreneur, your chances being a successful business owner are much greater if you buy a franchise and leverage their successful brand and track record.
As part of your process in starting a nanny referral service, it's worthwhile to check out whether buying a franchise could make sense for you.
The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.
These additional resources regarding starting a business may be of interest to you.
If you already are in business and came here to learn about growing an existing nanny referral service, try these useful resources:
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