How to Start a Babysitting Business: 10 Easy Steps to Cash in on Childcare

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Last updated: February 28, 2024

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Do you have a love for children and want to cash in on your passion to help busy parents manage their little ones? A childcare business might be the best way for you to earn a little income, especially if you happen to be a high school or college student. You need to know how to start a babysitting business the right way, so that it grows along with you.

If you're ready to start your own babysitting service, you need these ten easy steps to get it off the ground smoothly.

Let's take a closer look at what you can do to create your own babysitting business.

Contents

How to Start a Babysitting Business in 10 Comprehensive Steps
Final Thoughts: Start a Babysitting Business the Right Way

How to Start a Babysitting Business in 10 Comprehensive Steps

Starting a successful babysitting business doesn't have to be complex, but it does require some much-needed planning. Your business success depends on your ability to get organized from the very start. Here are the ten steps you need to follow before you start offering your babysitting services.

1. Create a Business Plan and Resume

One of the core components of building a profitable business is to have a plan. Many babysitting businesses don't go into the field with the idea of growing or scaling their business -- but they should! You can create a solid business plan that tells you how many children you would like to watch, what your rates are, and even how you will market your new babysitting business.

Of course, this business plan is just for you to start getting some ideas of how your brand will function.

You also need something to share with the parents of the kids you will babysit, like a resume.

A professional resume can make a great first impression and lead to a babysitting job that is long-lasting and satisfying to you and the family you help.

This is the best place to list references, experience, and even certifications that set you apart from someone offering just basic child care.

Not sure how to write a resume? Check out our guide on how to use ChatGPT for resumes!

2. Decide on a Business Structure

Once you have your business plan made, it's time to consider what business structure best suits you. A sole proprietorship is often the easiest way to get your babysitting service off the ground. Some states don't require any kind of paperwork for a sole proprietorship, and your taxes are filed with your personal income taxes at the end of the year.

However, it may be better to file as a limited liability company (LLC) because it provides another level of protection for you as a separate legal entity. An LLC offers personal asset protection in the event that anyone decides to sue your company.

In other words, they can only go after business assets and resources rather than your personal ones.

Filing the paperwork to become an LLC legal entity doesn't have to be complex. You can work with ZenBusiness to get your company off the ground. They make it quick and painless to get your LLC status.

3. Set a Budget for Business Expenses

Whether you are looking at babysitting or a daycare business, you will likely have some expenses that pop up. You might not even think about some of the things that you have to purchase to make all your babysitting jobs a smashing success.

For example, you need to budget for items like:

Arts and crafts supplies
Educational toys for children to play with
Meals and outings with the child
Mileage and gas for your vehicle
Marketing costs
Cost of continuing education and certifications
Cost of maintaining a business location
Business insurance

Brainstorm your business ideas and where you want your babysitting business to take you. Knowing how much you need to have in savings before you open the doors to your new business is essential.

Don't forget that you will also have expenses related to designing a website, which we'll cover next.

4. Design a Professional Website

Most people are going to find your business online in today's digital world. This means that you need to put your best foot forward on the internet. Make sure you have a professional website or even a social media page where you can direct people to learn more about your services and fees.

You don't have to spend a small fortune on having a professional web designer create a robust website for you. Instead, you can use WordPress and hosting plans like WPX Hosting to create a website you're very happy with. Other sites like Squarespace have templates you can use to get started quickly.

Here are some ideas for personal website examples that can get you started.

5. Open a Business Bank Account

Because you will have to claim your babysitting business income on your taxes at the end of the year, it will help tremendously if you maintain a separate bank account. Your business accounts should be clear and well-maintained to make accounting easier (more on this in a moment).

If you purchase something for your business, like a new toy or a meal, it should go on your account (or your business credit card).

Babysitters who are over the age of eighteen may want to consider getting a business credit card to go with their new business. A secured credit card (one with a deposit and a small line of credit) can be a great way to build up your credit slowly over time.

This allows you to put your business name on the account and helps your brand start building up credit in hopes of securing a loan later on down the road. If you have dreams of opening a daycare, this can be a crucial first step (be sure to also check out our guide on how to start a daycare with no money).

6. Set Up Bookkeeping with Online Tools

You will need accounting software to help you manage your personal taxes at the end of the year. Keep up with routine bookkeeping to prevent you from scrambling to tally up receipts and income when the fiscal year ends.

If you already have a separate bank account, it should be easy to identify which expenses were for business and which ones were for personal assets.

Many of the most popular software options, like QuickBooks and Freshbooks, integrate with your bank account, making it easy to categorize income and expenses with just a few clicks.

You don't necessarily need the help of an accountant, but it can certainly be beneficial for filing your taxes at the end of the year. They can help you to claim the maximum deductions, keeping more money in your pocket.

7. Get Necessary Certifications

Local parents are far more likely to hire you if they know their child is in good hands in their absence. This is about more than simply entertaining their child with arts and crafts or educational programming though. It also means that you are well-versed in the necessary certifications that can save a child's life.

For the most part, you will want to be certified in both CPR and first aid. Red Cross offers these classes in person all over the country. You may also be able to obtain your certifications online, though you miss out on valuable hands-on training time that could make a huge difference in your understanding.

Make sure to include the cost of these certifications in your startup costs.

8. Set Your Rates

Beyond selecting a business name, the most important thing you need to do is set your rates. This might sound simple and straightforward, but rates can vary based on what the parents ask you to do during your time with the child. For example, some parents may want light housekeeping done in addition to watching the children.

You may also want to consider setting rates based on the number of children you watch at any one time. Set up discounts for a second, third, or even fourth child up to the number you can safely and confidently watch at one time.

Location is another thing to keep in mind when setting your rates. You may have one rate for families who live close to you and slightly higher rates for those in surrounding cities. Make sure you offset the cost of your gas, wear and tear on your vehicle, and your time to get to the gig.

9. Keep Organized with Appointments & Child Preferences

Once you start a babysitting business, you may have too many parents and their families to keep track of in your head. Instead, you need to come up with a system that allows you to get organized, such as carrying around a paper planner or using an app like Google Calendar on your phone.

Make sure you never miss an appointment to watch a child or it could ruin your reputation as a reliable sitter.

Another key component to running a successful babysitting business is to make sure you understand the child you will be watching. You can create a new document in Google Docs for each family you work with or carry a binder with forms you can fill out.

This is a good time to list out a child's preferences when it comes to activities or food.

More importantly, this is also the best time to list out things a child is allergic to or is not allowed to do. Keep parents happy by doing your best to abide by their rules, such as no video games after a certain time or only watching certain educational television programs.

10. Marketing

You'll be able to find far more potential clients if you engage in a little marketing.

This is a great time to beef up your social media presence, pay for a few local advertisements that link back to your website, and advertise your positive reputation.

You'll find more prospective clients with well-placed ads than you can through word-of-mouth alone.

Collect testimonials and share them on your website and Google My Business profile, and even include them in the resume you hand out to parents. All of this allows you to start a babysitting business that will thrive.

If you'll be watching children in your own home, provide pictures of the areas where children will spend their time.

Pay careful attention to which age group you market yourself as serving, ensuring that you don't limit yourself too much in case parents have older or younger children.

You can even ask for referrals from clients who are satisfied with your services.

Final Thoughts: Start a Babysitting Business the Right Way

Do you feel prepared for how to start a babysitting business the right way?

Whether you intend to work solo or hire employees, you can have a successful brand that leads to a babysitting job you can be satisfied with for years to come.

These ten steps will start you on the path to growing your company!

Start a Business

By Ashley Simpson

Ashley is an experienced freelance writer with an enthusiasm for finding creative ways to earn money online. She uses her passion for words to share what she has learned with the world.

She spends most of her time blogging for a multitude of websites and consuming everything she can get her hands on in relation to personal finance and side hustles.

Want to learn step-by-step how I built my Niche Site Empire up to a full-time income?

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How to Start a Babysitting Business: 10 Easy Steps to Cash in on Childcare