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Steps for a Successful Start International Nanny Association a Basic Business Plan for Launching a New Placement Agency

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Steps for a Successful Start International Nanny Association a Basic Business Plan for Launching a New Placement Agency INA Steps for a Successful Start International Nanny Association A Basic Business Plan for Launching a New Placement Agency ABOUT INA Members of the International Nan- ABOUT THIS PUBLICATION ny Association agree to abide by INA is a private, non-profit educa- INA’s Commitment to Professional Steps to a Successful Start was tional organization serving nannies Excellence and Recommended developed to serve as a basic and those who educate, place, Practices. business plan and resource for employ and support professional those contemplating starting their in-home child care providers. INA own nanny placement agency. serves as the umbrella association for the in-home child care industry STARTING A NANNY Utilizing the strategies, tools and by providing information, education PLACEMENT AGENCY tips within this publication can help and guidance to the public and to assure that you’ll be well on your industry professionals. Starting a nanny placement agen- way to starting a successful nanny cy is an exciting and challenging placement agency. Since its inception in 1985, INA endeavor, and the International has been dedicated to improving Nanny Association wishes you the quality of in-home child care great success! Many INA mem- that children receive, by providing bers have been through the ex- nannies with educational resources perience of building a successful to aid in their professional develop- business from the ground up. INA ment. has tapped the resources of some of the most successful placement agencies in the country to help you take the necessary steps for a suc- THE ROLE OF NANNY cessful start. The following publi- PLACEMENT AGENCIES cation stresses the time, research, money and dedication required to Nanny placement agencies play a start a viable, quality and success- valuable role in the in-home child ful agency. The steps provided in care industry. As service compa- this package will assist you in de- nies, placement agencies strive to veloping a sound business plan to match the skills and qualifications decide if and when you are ready of nannies with the needs and to launch a new agency. preferences of families seeking an in-home child care provider. STEP 1: RESEARCH THE MARKETPLACE AND THE INDUSTRY Before making the decision to begin your new business you must research your marketplace. For your busi- ness to be successful, there must be an actual need for the services you will provide. Research will help you determine if there is a need for your business and will help you understand the competition, the details of your competitors’ placement process, the costs of starting your business, and more. Thorough research will allow you to confidently decide if you are ready to go into business and will help you determine your chances for success. The following list of questions and considerations can be used to help guide you through the research process: Assess Demand and Supply • What is the demand for caregivers in your market? Is this demand already being met? • How many nanny agencies are serving your potential market? Is there room for one more? • How much of the market is served by local full-service agencies vs. national online services? • Will you place all levels of domestic employees or only child care providers? • Will you place part-time nannies and newborn care specialists? • Will you want to co-broker (share placements) with agencies located in other areas? • Will you be able to fill your clients’ requests? • Will you be able to find jobs for nannies who apply? Determine Demand in Your Market for Different Services Within the Industry • Amount of demand for full-time nannies. • Amount of demand for part-time nannies. • Amount of demand for after-school care. • Amount of demand for temporary care. • Amount of demand for housekeeping services. • Amount of demand for infant specialist care • Amount of demand for other home care – eldercare, nursing, etc. Assess Competition and Pricing • What are other agencies charging for their services in your market? • Is there room for another placement agency in your market? Will you be meeting a demand that is not met, or will you be simply sharing the market with your competitors? • What services do competitors offer? Will you offer something different and/or something better? Commitment to providing a professional service means charging professional and competitive fees. If you want applicants and clients to give you a try, you will need to demonstrate that you provide more value and quality than the competition. Providing dedication, thoroughness and value to each and every client that you work with will produce results. Determine Family Demographics • What is the average household income in your marketplace? • What is the average age of homeowners in your marketplace? • What is the number of infants and young children in the area where you wish to establish your business? Determine Potential Target Clients According to the 2009 INA Nanny Salary and Benefits Survey, the majority of families that employ a nanny are professional couples including attorneys, stock brokers, doctors, financial consultants, corporate VIPs, etc. That same survey showed that the second largest group of nanny employers were families where one or both parents work from home. At the bottom of the list of nanny employers were celebrities and independently wealthy individuals. Determine Caregiver Demographics • From what area of town to most caregivers come? • What is the average age of the typical caregiver? • What is the average education of the typical caregiver? • Do most of the caregivers work full time or part time (i.e. students, etc.)? • Do caregivers typically have transportation? • Do caregivers in your area speak English fluently? • Are caregivers in your area legally able to work in the United States? • Do most caregivers have some childcare experience? • Do caregivers typically have CPR and First Aid certifications? Determine the Pool of Available Caregivers and Potential Clients in the Area Running trial Internet ads to test their response and visiting local parks and playgrounds during the day to ask nannies and parents for their opinions on starting an agency can help you evaluate the potential pool of clients and caregivers in your area. You just may hear “What this area needs is a good nanny agency!” Determine Sources for Recruiting Caregivers Running ads on Internet job sites or print ads in neighborhood newspapers can be effective in recruiting care- givers. You may also find success in placing flyers on bulletin boards in libraries and coffee shops. When you advertise for nanny candidates it is vital that the format you use be professional and that the language outlines the basic qualifications potential caregivers must have. Doing so will help attract the highest quality candidates to represent your agency. Determine Salary Ranges and Standard Benefits The 2009 INA Nanny Salary and Benefits Survey is a solid resource for evaluating national salaries and ben- efits for nannies. Nanny salaries range from $15,000 per year to in excess of $80,000 per year. Salary ranges vary by geographical areas and are influenced by the nanny’s education, years of experience, number of chil- dren that they are care for, on the job responsibilities, additional benefits that they receive from their employer and if they are living in employer furnished housing or not. The 2009 INA Nanny Salary and Benefits Survey details the number of nannies that are receiving employer paid health insurance, employer furnished vehicles, paid vacation time, etc. • Research the steps that need to be taken and the requirements that need to be met to secure a successful placement. • Research industry standards and best practices that provide a thorough and quality placement. INA pub- lishes industry standards and recommendations, and the most successful agencies in the country adhere to them, as they create success. • Research the process for legal work status verification. • Research the background screening process. • Research reference, employment and education screening processes. • Research effective interviewing techniques. • Research effective matching of responsibilities and skills. • Research how to advise clients and caregivers. • Research effective salary negotiation techniques and strategies. • Research household employee/employer work agreements and contracts. • Research how to set client and candidate expectations • Research efficient data capture and tracking methods. • Research effective documentation storage systems. • Research legal requirements for data retention. • Research the tools and materials needed to carry out placements. • Research Equal Employment Oppportunity Commission (EEOC) requirements. • Research payroll and tax laws for domestic employers and employees. • Research successful follow-up and relationship building techniques and strategies. STEP 2: RESEARCH THE START UP COSTS Before starting any business it is vital to research the costs that are required to start up. This information will allow you to easily determine if you have the financial means to go into business and help you to develop an accurate budget. • Determine if bonding insurance and state or local licensing is required. • Determine other legal requirements in your state or area, such as applicable taxes that create expenses. • Research what type of legal business entity is right for your agency. • Determine where your agency will be located and the cost of renting office space. • Determine hours of operation. • Determine
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