Gone are the days when parents have to sacrifice their work for their babies thanks to babysitting business! Everyone has a job and they do need to focus on their career even after having a baby. At the same time, they want their kids to be in safe hands and somewhere they can trust that the kid will have a good caretaker.
Well the bottom line is, with increasing jobs and busy lifestyles the need for a babysitting business has increased. And if you are thinking about starting a babysitting business then you are on the right track. There are several perks of starting a babysitting business, such as it’s a low investment small business, so even if you don’t have a large capital you can totally go for a babysitting business. Secondly, the business is also flexible which means you can have a life and have fun at the same time you can have a good income source.
Although starting a babysitting business doesn’t require a big capital but it surely requires a good business strategy and some legal work to start a babysitting business. That’s what we are going to discuss in this article. We have written a full guide about how you start a babysitting business so that you will have a broad idea about what you will need to do. So take a look at the following article and start up your own business!
- 1 1. Plan your business
- 2 2. Figure out the startup cost for the business
- 3 3. Figure out the ongoing cost
- 4 4. Decide your targeted customers
- 5 5. Do some research
- 6 6. Get certification and get the permits.
- 7 7. Pick a name for your business.
- 8 8. Register your company and form a legal entity
- 9 9. Open a business bank account and a credit card
- 10 10. Get business insurance
- 11 11. Get the license to do the business
- 12 12. Decide your fees
- 13 13. Promote and market your business
- 14 Conclusion:
Also check – How to start painting business / How to start home staging business
1. Plan your business
No matter what business you are doing you will always have to plan your business and see what steps you will need to take in order to star up the business. Make a rough flowchart and write down the things you will need to do in order to start the business. If you know what you need to do next you will have a clear idea and things will go easy.
You can even write down the things that will be mentioned in the article so you will have an overall idea for what you need to do and don’t. A clear plan will also give you some specifics as well as you will discover the things which are essential but weren’t on your mind! The following steps are essential in planning your business.
2. Figure out the startup cost for the business
Every business needs capital to start up the business. And it’s important that you are aware of that before you step tour foot into the whole business. Just make sure you have enough capital to start the business. To estimate the startup cost you will need to think of everything that will be required to start up the business. This includes the place for the babysitting business, things such as toys or other baby stuff, staff (if you are hiring any), the fees you need to pay to start the business, etc.
Although the startup cost for a babysitter v business is quite low, you still need to have an idea about the expenses of starting a business.
3. Figure out the ongoing cost
Once you have sorted out the startup cost the next thing will be estimating the ongoing cost. The ongoing cost is one that needs to run the business. Such as rent, electricity bills, staff salary, etc. Estimating the ongoing cost will help you understand how much money you will need the first few months before you start making a profit out of the business. Business insurance, as well as the cost that includes your business strategy, will also be covered the ongoing cost. Here your finances are somewhat sorted but you still need to work on the investment as well as thoroughly figure out the finances and assets of your own.
4. Decide your targeted customers
See it’s important to know about the target customers for your business. It’s obvious that parents are your primary customers but what will be the class of those parents. See our society has different parents who come from different backgrounds that are their financial status. So their needs will also depend on their financial status. So you need to figure out to whom you are providing the services. It can be the middle class or the elite rich people. You should understand that the requirements vary for parents depending on their financial background.
Some pare ts are willing to pay more and in return, they want the best service that means your capital investment will be more. While you can choose the middle-class parents as your primary customers with a moderate investment.
5. Do some research
See once you have sorted out the finances and the primary customer you will need to gain some experience as well as some insights for the business. And the best way to do that is to conduct a full-fledged research on the babysitting business. This will help you understand the business requirements as well as how you will handle the kids and the parents.
You can also try to work a freelance babysitter first or you can work at a babysitter company to gain vital knowledge for the business. The more you know about the needs of the babies and the parents, the better it will be for your business.
6. Get certification and get the permits.
So you have planed your business, sort out your finances, and gained the experience now what? You will need some documents because without them no parent will gonna trust you and leave their kid with you. You will have to receive a certification for child care and child safety classes.
If you are running a big baby center then you may need some permits from the state so that it becomes easy to conduct the business and get things down easily.
7. Pick a name for your business.
Now it’s time that you actually start your babysitting business! To do that you will need to pick a name for your business. Keep in mind that it’s definitely not something you can take lightly. See the things is the name is the first thing the parents will notice about your business so it has to be comforting and good.
Also, make sure that the name you have picked up for your business can get a domain because you will have to make a website for your business.
8. Register your company and form a legal entity
Now that you have picked a name, it’s time that you register your business and form a legal entity because only this way your business will become official.
We would suggest you register the company with the LLC entity because it will prevent you from personal liability if your business is being sued. And it has many other benefits as well.
After you have register your company you will have to register for taxes. And for that, you will require an EIN. It seems like a big deal but it’s quite easy and in some states, these steps might be free as well. Keep in mind that the process for these steps varies from state to state so kindly go through your state’s business registration policy.
9. Open a business bank account and a credit card
Next thing you will have to do after you have registered your company and for taxes is to open a separate bank account for business. See you don’t wanna mix up your personal and professional business because it will only add more financial tension. So it’s better that you keep your personal and professional finances separate.
Owning a separate professional bank account will further protect your personal assets as well as it will be easier to do the taxes!
10. Get business insurance
Business insurances are the need of the hour because you don’t wanna end up losing everything over any damage done by you. It will protect you from various things. There are different business insurance present such as worker compensation as well the liability insurance which you can acquire.
11. Get the license to do the business
It’s important that you have the necessary license to conduct the business. Just keep in mind that if you conduct business without a necessary license then you might get hefty gives as well as lose your business.
12. Decide your fees
It’s an important step, after all, you do want to get financial stability as well as earn the profits and in order to do that, you will have to come up with a few structures. See the fee might vary according to your location, the age of the kids you are looking after, and the kind of services you are providing.
The best way to come up with a reasonable fee is to add all the expenses and a profit margin. If it seems complicated you can always take help from experts to come up with reasonable fees.
13. Promote and market your business
Everything is set up and you have done almost everything that needs to be done in order to start a babysitting business. Now it’s time that you let know people about your business and invite customers.
The first thing you will need to do is to establish a website for your business. See we live in a digital age and the first thing that people do is search for the products as well as the services they are looking for. A website also looks like the authenticity of a business. You can put in all the basic details about your business as well as the services you are going to provide.
Apart from this, you will have to market your business. This will require a business marketing strategy. You can promote your business on social media platforms, you can also stick the posters for the business to let know the people that you are available for the service.
The bottom line is, you will have to promote your business and let people know about the presence of your babysitting business. You can also ask your friends and family members to give referrals in the initial days!