A Complete Guide on How to Start a Nanny Agency in 9 Steps

How to Start a Nanny Agency?

There is hardly a venture as rewarding as starting a nanny agency—helping families connect with perfectly matched childcare providers while assisting high-quality caregivers in finding great positions.

If you’re wondering how to start a nanny agency, it’s important to remember that starting any business comes with challenges. Do your research, plan carefully, and take the right steps to set yourself up for success. With proper preparation, how to start a nanny agency can turn into a fulfilling and profitable journey.

Steps for How to Start a Nanny Agency

Step 1: Plan Your Nanny Agency Startup.

A whole lot goes into starting a nanny placement service. Before starting any business you’ll want to understand why you want to start it, who you will be helping, and how you are going to solve their biggest problem. This will be the start of your childcare agency business plan. Start with… What services will you offer? Who is your target market? What makes you stand out from your competition?

Step 2: Legal Requirements of Your Nanny Agency

Becoming a legal entity isn’t as hard as it sounds and doing so will protect your personal assets in case of a lawsuit. There are a few different types of business entities to choose from, you may wish to consult with an attorney or your local Small Business Administration to determine which one is right for you, but you’ll most likely want to become an LLC or a Solo LLC. There are services that can help you achieve this or you can look it up and do it yourself. In the end you’ll need to have an EIN, become registered with the state and city, following any requirements they have, and obtaining any licenses you need to legally operate. (Ex: You may need both a city business license and a private domestic employment license.)

Step 3: Open A Business Bank Account and Credit Card

In most cases your business will file taxes separate from your personal taxes and so it is crucial you keep your business assets different from your personal. This is also a benefit because banks love working with small businesses. Your business will be able to build credit differently than you.

Step 4: Set Up Accounting for Your Nanny Agency

Tracking your income and expenses is a crucial part of building a reputable nanny agency. To best keep track of your accounting it is standard practice to utilize accounting software. There are many on the market so research which will be best for you and your business. This will help you track your income and expenses to ensure that you are paying all of your taxes correctly.

Step 5: Get Nanny Placement Agency Insurance

Get deep into learning about the community and families you intend to serve. Oftentimes you are not your target market and you’ll need to authentically learn how to speak their language. Discovering what they like to do, where they like to go, how much they earn, what type of job they have will all help you sort out who and how to target them to let them know you exist and you can solve their problems.

Joining us as a guest expert is Adam Griggs, a Producer at the JA KNAPP Agency and Co-Founder of CLARAfi.coach, a communication platform designed to help small business owners build and leverage trust proactively with their advisors. We’ll discuss how to start from a place of deep understanding and strategic alignment, ensuring that you apply for insurance with the confidence that your business is safeguarded against potential risks.

Step 6: Define Your Nanny Agency Target Market

Our nanny agency targets busy, professional families seeking trusted, high-quality childcare. We also serve new parents in urban areas who value personalized, flexible care solutions.

Join industry expert and owner of The Nanny Agency School, Stephanie Bauchum, for an insightful webinar designed to help staffing agencies like yours refine their marketing strategies and build stronger connections with their target audience.

Step 7: Create Your Nanny Agency Resource and Marketing Materials.

A website, most forms of social media are important to have. Having and using them will help you rank higher in search engines such as google. Before you decide on a name check and see if it is taken or similar to another business. Your website is your online storefront, so it’s important to make a good impression. Be sure to include information about your services, nannies, and pricing.

A well-crafted email marketing strategy can make all the difference. Beyond simply promoting your services, it builds trust, nurtures relationships, and demonstrates your commitment to delivering value. In “Instant Email Marketing: Activating Your Users,” Danny Rosenthal, Director of Community at Enginehire, will guide you through his step-by-step email marketing introduction sequence.

Step 8: Market Your Nanny Agency

There are a number of ways to market your nanny agency, such as online advertising, social media, and networking. One of the best things you can do is ask your previous clients if they know anyone who can benefit from your service.

Check Out

How to Build A Nanny Agency Podcast

From Limo Driver to CEO: How Ranjith Ravula Built Raks Group Into a 7-Figure Staffing Business

Behind the Awesome Scenes of Naptown Nannies: How Christine Lasser Built Her Nanny Agency

Managing Risk & Insurance Insights Featuring Taylor George, Founder of CareGuard Risk Partners

Step 9: Start Working with Families and Nanny Candidates

Once you have completed these steps, you’re ready to start working with families and nannies. Decide on what your offer is to families and what requirements you have of potential candidates. Understand what the family needs to match them with the right child caregiver. Understand the needs of the child caregivers to place them with the right family. Stay in contact with and track of your leads as they reach out and apply with your childcare placement agency.

Here are some additional tips for How to Start a Nanny Agency successfully

- Create a database of qualified nannies. Your nannies are the face of your business, so it’s important to hire qualified and experienced professionals. Decide what you require of a candidate before they apply.

- Excellent customer service in a must. Go the extra mile for your clients and they’ll be more likely to refer you to their friends and family. Over 80% of businesses get their customers from a referral.

- Research the nanny agencies in your area. Try to use your competitors as a gauge of where their target market is at. You may choose to be competitive with your pricing or your services or do something completely different.

- Marketing 101 for your nanny agency effectively. Learn what marketing will most likely attract your customers before spending any time or money doing it.

- Have a system. Use a CRM (Customer Relationship Manager) system to track your leads, clients, and nannies and where they are in your system every step of the way, from them filling out your application, meeting with you, interviewing, and completing a match. This step will keep you from making mistakes and save you time with possible automation.

- Network. Become strategic partners with similar but different businesses and those with an overlapping target market. A great nanny agency will be able to refer a family to a wonderful parent coach, lactation consultant, payroll company.

- Support the community. Join associations and put events on. A webinar can be an extremely cheap and effective way for sharing resources with your target market while proving you are an authority.

Are you wondering how to start a nanny agency? Starting a successful nanny agency requires careful planning, from setting up legal requirements to recruiting qualified caregivers and building trust with families. In this blog, we have covered all the essential steps to help you navigate the process smoothly.

By following the right strategies, maintaining strong client relationships, and offering high-quality services, you can establish a reputable business in this growing industry. If you’re serious about learning how to start a nanny agency, focusing on excellent communication, proper marketing, and reliable placements will set you apart. With dedication and the right approach, your journey in how to start a nanny agency can turn into a thriving and rewarding business.

One tool that can significantly streamline your nanny agency setup is Enginehire. It offers an all-in-one staffing platform specifically designed for agencies like yours. You can easily manage caregiver profiles, match families with suitable nannies, schedule placements, handle client communication, and automate invoicing and contracts.

With customizable workflows, mobile app access, and client-facing dashboards, Enginehire supports you at every step. From onboarding new families to managing ongoing placements, it helps you stay organized and efficient. If you’re focused on building a professional nanny agency, Enginehire provides the tools and support you need to grow confidently.