Between date nights and drop-offs, special events and school pick-ups, babysitters are the glue that helps parents and caregivers find balance and reprieve. More than half of US households with children have two working parents, which means babysitters have become a lifeline for families, driving steady, growing demand for this essential support.
Maybe you already have a small Rolodex of families who rely on you for childcare and you’re wondering if it’s time to expand. The work is rewarding, the hours are flexible, and the pay is good. Considering turning your occasional babysitting services into a full-fledged babysitting business? Here’s what you’ll need to know.
What is a babysitting business?
A babysitting business is a type of child care business that operates on an hourly basis, unlike day care centers, group child care, camps, or nannies, who typically charge by the week, month, or year, and spend the majority of the day with the child being cared for. Babysitters offer child care on an as-needed hourly basis. Their services can be called upon at any time of day, any day of the week, sometimes on an on-call basis.
A babysitting business can be a solo venture or run like an agency, with multiple team members or contractors available for bookings. Babysitters can host children in their own home, provide care in the client’s home, or provide transportation between after-school activities and extracurriculars for busy parents and their kids.
3 reasons to start a babysitting business
Babysitting can be an enjoyable and reliable source of income, especially if you have a regular roster of loyal clients. Some of the major benefits of making it your full-time focus include:
Flexibility
Babysitters set their own schedule, which can be a major plus if you’re seeking more autonomy in your professional life, or if you’re balancing babysitting jobs with school, other passions, or part-time work. Babysitters can set their own hours, their rate, and choose the families they work with.
Growing demand
Much like the day care business, the babysitting market has grown steadily in recent years and is expected to reach $37.5 billion in the US by 2030. This increase in demand is due to a growing number of families with two working parents, as well as a rise in single-parent families in need of child care.
Fulfilling work
Caring for children can be incredibly rewarding work, especially if you have a passion for early childhood development. Babysitters are often integral members of a family’s community, and play a large part in instilling values, enrichment, and company in a child’s life. If you’re planning on specializing in education later, babysitting can be an excellent way to gain experience and exposure to different perspectives, behaviors, and caregiving styles.
How to start a babysitting business
- Establish your target market
- Decide on a business structure
- Open a business bank account
- Write a business plan
- Obtain licenses and certifications
- Create a website
- Market your services
Once you’ve got a few babysitting gigs under your belt and see a path toward regular business and a steady income, it’s time to start making things official. Read on to learn how to start your own babysitting business.
1. Establish your target market
You can break down the target market for your babysitting business into a few key categories:
Location(s)
Decide whether you’ll plan to target your immediate neighborhood, town, or county. Where you choose to base your business will have transportation implications, so make sure you’re able to get to the areas you serve. You’ll also want to factor in the cost of gas or public transit when determining the radius of your work.
Age range
Will you look after kids of any age, or will you specialize? Babysitters who are comfortable with and capable of caring for infants or younger children are especially valuable for newer parents looking for help. Alternatively, you might have the ideal energy and creativity to entertain older kids or act as a reliable and cheery chauffeur for pre-teens.
Time of day
Will you provide daytime services for families? Or primarily offer nighttime and weekend care for date nights or special events?
2. Decide on a business structure
Maybe you take babysitting jobs as a way to make a little extra money, or maybe you want to create a babysitting agency or network that helps place other babysitters with families. The type of business you want to set up will determine your costs, operations, whether or not you’ll need to hire employees, and how you’ll need to register your business for tax purposes.
Sole proprietorships and general partnerships are unincorporated entities, meaning that there’s no legal distinction between the owner(s) and the business. Without this distinction, the business owner is responsible for the business’s losses, debts, and liabilities. By contrast, limited liability companies (LLCs) are incorporated business entities and enjoy pass-through taxation.
It’s also important to note that if you provide care in a family’s home, and you earn more than $2,700 from that single family, they’ll need to pay you as a household employee (W2); if you provide care outside the home, you’re considered an independent contractor (1099). If you’re under 18 or work for a child care services agency, there are different guidelines, so make sure both you and your babysitting clients are clear on tax withholding and declaration best practices.
3. Open a business bank account
No matter what type of business structure you choose and even if you don’t plan to hire employees, it’s a good idea to get an employer identification number (EIN). Among other benefits, it’s also required to open a business bank account. A business-specific bank account helps you delineate professional expenses from personal ones, allowing you to accurately write off business expenses such as gas, groceries, and activity costs come tax time.
4. Write a business plan
A babysitting business plan allows you to identify what makes you unique as a caregiver. It also helps you create a clear pricing structure and outline the specific services you offer (like infant care or chauffeuring). Additionally, your business plan captures all the essential details in one place—such as licensing and safety certifications, how you’ll operate, your pricing model, and your earning goals. Writing out your plan can be especially useful if you want to scale your babysitting business, bring on partners, or seek investment.
5. Obtain licenses and certifications
Next, make sure your safety certifications (like CPR, infant rescue, and first aid) and first aid kit are up to date. Online or in-person training and courses can be found through the American Red Cross, which also offers babysitting courses that include child behavior management and infant basics, like feeding and diapering.
If you plan on providing meals in client homes, you may also find it helpful to take food safety and handling classes, though it’s not typically required by families.
6. Create a website
A babysitting website can be a great way to showcase your expertise, availability, offerings, and certifications—and helps potential clients find you through online search. Building a portfolio or digital calling card for your services has never been easier; there are many simple drag-and-drop website builders available online. You can use Shopify to create a secure, professional website with your contact information, an FAQ section, cancellation policy, a page for booking appointments, and a way to accept payments for your services.
7. Market your services
Finally, it’s time to spread the word about your babysitting services. You can post flyers at local parks, coffee shops, markets, or shopping areas. After asking permission, leave takeaway cards at preschools or day care centers. Consider advertising in local publications, or engage with parent groups or day care associations who can refer you to other families.
Business cards can be an especially useful marketing tool, especially for a business that relies on word-of-mouth referrals and chance encounters. Shopify’s free business card maker is an easy-to-use option for designing a card with your logo and details.
How to start a babysitting business FAQ
Do I need an LLC to babysit?
No, babysitting does not require starting a limited liability corporation (LLC), though you may choose to register as one if, for example, you run a babysitting agency with individual contractors, or want to separate your personal assets from your professional ones.
Is babysitting a profitable business?
Babysitting can be a profitable business. You can keep costs low by babysitting at families’ homes and keeping your radius of operations small so you don’t have to spend time and money traveling to your clients.
Do you need qualifications to babysit?
There are no unique qualifications you must have to become a babysitter, but many families prefer or require certifications like CPR, first aid, or infant care, and in some circumstances, a driver’s license, before hiring. Often, the most sought-after qualifications are experience and positive references.