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Although babysitting is not a new business venture, the earning potential, as well as the technical aspects of the business have increased exponentially in recent years. Demand for qualified and reliable individuals to monitor and interact with children is growing daily. This service is generally provided either at the client’s residence, but can be offered in hotels, event venues, or in the babysitter’s home.

Plan your Business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What are the startup and ongoing costs?
Who is your target market?
How long it will take you to break even?
What will you name your business?
Luckily we have done a lot of this research for you.

What are the costs involved in opening a babysitting business?

Regardless of how you structure your new business, start-up costs are extremely low. Reliable transportation is paramount to the success of your company. This cost will most likely fluctuate, so keep some revenue in savings, whenever possible. A website will be your largest initial investment. It does not have to be fancy, but a website will help with your marketing campaign. Consider the online services you would like to offer your clients before discussing a site build with a developer.

The two main expenses a babysitter will have are transportation and marketing. Gas may cost an average of $15 per week, or perhaps you’ll use public transportation, which may cost $20 per week. Marketing, on the other hand, can be as simple as a website and social media promotion. A website will likely cost $500 or so for design, development, hosting, domain registration, etc.

What are the ongoing expenses for a babysitting business?

Like the startup costs, there is very little overhead involved in running a childcare business. Your website should be properly maintained and updated as a standard regimen. Since you are commuting regularly, fuel costs and vehicle maintenance should be budgeted on a monthly basis. If you employ other babysitters, consider paying them as a freelancer to cut down on your ongoing expenses. Aside from the costs associated with commuting, your largest business costs will be business insurance and a marketing strategy.

Who is the target market?

Families and working parents, ranging from affluent to middle class, will be your primary target audience. In general, your clients are looking to build a long-term relationship with a trusted and reliable caregiver.

How does a babysitting business make money?

This business draws in revenue from each babysitting job completed.

How much can you charge customers?

The national average hourly wage for babysitting is $13.97. Your fees should vary, depending upon a number of factors, such as: how many children, the age of the children, special needs or instructions, and the length of time your services are needed. Fees are typically determined by hourly rate, flat fee, or on a per child basis.

How much profit can a babysitting business make?

While you are the only babysitter on staff, your profits will be limited. If you charge $15 per hour and are able to babysit forty-five hours per week, your profit will be $2,700, minus expenses, per month. For each sitter you hire, your profits rise exponentially.

How can you make your business more profitable?

Focus on your online services. Many consumers turn to the internet for virtually everything, including researching their childcare options. This will also extend your reach, allowing you to service customers wherever you have a babysitter available.
Consider opening a babysitting facility. While the overhead will be higher, this will afford you the opportunity to take on several clients at a time.
Offer online and in-person courses. This could include standard safety, CPR, and first aid.
Research indicates that parents are willing to pay more before and after school and for last-minute sitters. Make yourself available during those times.
Early education degrees and sitters with pre-school education knowledge are often paid a higher wage. If you do not possess this knowledge, try to hire others who do.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.


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