The business in one offer
Who it serves
Dual-income families with an infant or toddler who need a full-time nanny within four to eight weeks, often after parental leave ends. They want someone vetted and reliable, have little time to sort through online profiles, and will pay a fee to get a short list of qualified people.
What to sell first
A full-time nanny search for one family: intake call and written job profile, recruiting and phone screening, structured in-person interviews, two reference checks per candidate, a background check with the candidate's written consent, a short list of up to three nannies, and help drafting a family-nanny work agreement. A 60-day replacement promise applies if the nanny leaves. Excluded: payroll, babysitting, temporary care and emergency placements.
A single full-time search with set steps lets you estimate hours and quote one fee. Families get a clear process with milestones, and a limited replacement window makes the promise affordable to keep.
What could it cost to start?
This is an original example budget for the limited pilot described above. It is not a researched market average or a complete quote for every location.
| Item to price | Example allowance |
|---|---|
| Background screening credits for first searches | $600.00 |
| Professional liability and general liability insurance allowance | $900.00 |
| Applicant tracking and e-signature tools, three months | $240.00 |
| Legal review of agency agreements | $800.00 |
| Job posts and website with clear fee page | $300.00 |
| Business registration and agency license allowance | $300.00 |
| Example total | $3,140.00 |
What this assumes—and excludes
Assumes you work from home and have childcare, HR or recruiting experience. Excludes office rent, owner pay, payroll services and any employment agency license fees, which vary by state. Talk to a lawyer about your state's rules before charging your first family.
Collect actual supplier, insurance and local-authority information. Add a reserve for delays and unexpected costs; the example total is not a funding recommendation.
How the unit economics work
At an assumed $3,500.00 per placement and $220.00 in direct costs, contribution is $3,280.00 before monthly fixed costs, owner pay and taxes. With 25 all-in working hours per unit, that is $131.20 per delivery hour before those deductions. These inputs illustrate the arithmetic; they do not establish a market price or expected earnings.
The example also allows $250.00 in monthly fixed costs. Include unpaid acquisition and administrative time when deciding whether the offer is worthwhile.
Try your own numbers
These are editable planning assumptions, not prices we have verified. Calculations stay in your browser.
Operating result = (price − direct cost) × units − monthly fixed costs. Before owner pay, taxes, financing and startup recovery. At these inputs, delivery requires 250 hours per month, plus any work not included in your per-unit estimate. Sales volume is a scenario, not a forecast.
How to find the first customers
Test a small offer before scaling traffic. Record the source of each enquiry, whether it fits the offer, and whether the buyer pays.
- Meet with pediatric practices, parenting groups or birth centers and ask whether they keep a list of trusted childcare resources. Leave a sheet describing your screening steps and fees.
- Recruit nannies through childcare training programs and experienced caregivers in your network. Explain what you check and how you present candidates, and ask for their consent in writing.
- Offer a free 20-minute call to new parents in local groups where promotion is allowed. Talk through timelines and costs and track how many calls turn into paid searches.
- Ask each placed family whether they would refer a friend. Thank them without offering cash that could look like a paid review, and record which placements lead to referrals.
What to validate before spending more
- Check with your state labor or licensing agency whether nanny placement agencies need a license, bond or specific contract terms. Record the answer and requirements before taking fees.
- Have a lawyer review your agreement with families, including fee timing, the replacement promise and the statement that the family is the employer.
- Run one pilot search for a family at a reduced fee and log every hour from intake to placement. If the search runs well over 25 hours, adjust the fee or narrow the job profile.
- Use a background screening provider that follows consumer reporting rules, and confirm how you must get consent and notify candidates if a report affects your decision.
The operational catch
Families often forget they become employers. A nanny paid off the books can lead to tax problems for the family and disputes that land back on you. Tell every family in writing that they may owe payroll taxes and should talk to a household payroll service, and do not act as the employer unless you mean to.
A practical way to fund the first step
Ask for a nonrefundable retainer at the start of the search and the balance on placement. Keep costs low by using pay-per-check background screening, and add paid job boards only for searches where your network does not supply enough candidates.
Separate cash already available from money still to earn. Count only proceeds after direct expenses, and do not spend customer funds needed to fulfill their existing orders.
Questions before you start
Is the nanny my employee?
In most placement models the family hires the nanny directly, and the agency does not employ them. That makes the family responsible for wages, taxes and work rules. Make this clear in your contracts and suggest families talk to a payroll provider.
What background checks should I use?
Many agencies check identity, criminal records, driving records and references. Requirements and limits vary by state, and consumer reporting laws set rules on consent and notices. Work with a reputable screening provider and follow their compliance steps.
How long do searches usually take?
It depends on pay, hours and location. Allow several weeks for recruiting, interviews and a trial day. Families with flexible schedules and fair pay usually find good candidates faster.
Source-backed checks
These references support the specific checks below. They do not endorse this business idea or substantiate the example prices, costs or demand.
The IRS says workers are generally employees if the business controls what work is done and how it is done. Internal Revenue Service: Independent contractor (self-employed) or employee?.
SBA's hiring guide outlines employer steps such as obtaining an EIN, verifying eligibility and reporting new hires to the state. U.S. Small Business Administration: Hire and manage employees.
The FTC's advertising FAQ says businesses must not make misleading claims and should have evidence for objective statements in ads. Federal Trade Commission: Advertising FAQ's: A Guide for Small Business.
- Independent contractor (self-employed) or employee?Internal Revenue Service · Reference checked September 8, 2026
- Hire and manage employeesU.S. Small Business Administration · Reference checked September 8, 2026
- Advertising FAQ's: A Guide for Small BusinessFederal Trade Commission · Reference checked September 8, 2026
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