While babysitting isn’t an innovative business idea it is a lucrative business, but the earnings potential and its technical aspect have grown rapidly during the past few years. The need for reliable and qualified people to supervise and interact with children is increasing each day. This service is typically offered at the home of the client however, it can also be provided at hotels, in event venues, or at the home of the babysitter.
Learn How To Start A Babysitting Business and whether it is the right one for you.
Why Babysitting Is A Business
A business can be defined as “the process of earning money through trade” and “a person’s usual job, trade or occupation.”
The business can include the purchase and sale of physical items. For instance, in cases of child care, they may offer services to their clients.
If you earn money by taking care of babies, then you’re running a business!
There is an exception if you are employed by an employer who is a babysitter. If that’s the situation, you’d be considered an employee. But, the majority of babysitters are self-employed, and they do all the work needed to find their clients and carry out their tasks by themselves.
What Does A Babysitting Business Look Like?
The babysitting service includes chores including watching children play with them, as well as making meals for them.
There are other jobs you’ll need to accomplish as a business well.
It is essential to promote and market your business to gain new customers. In addition, you’ll be responsible for managing administrative tasks like managing your finances as well as responding to phone messages and calls, as well as managing your timetable.
If you have employees working for your babysitting company, you’ll need to schedule reservations, run background checks on the babysitters you hire, and meet with both parents and children to ensure that the babysitter you choose is suitable to their particular needs.
Babysitting Requirements For Starting A Business
If you decide you’d like to establish an enterprise that provides babysitting services what are the skills you’ll require? What rules, regulations, and regulations will be in place?
Know-How And Skills
The most important item to check is that you’ve got the required knowledge and abilities to manage an infant. While there’s not a requirement for a specific qualification in the area of child care, you could benefit from tertiary education, for example, an awarding a Certificate III in Early Childhood education and care through the TAFE.
One aspect of training every babysitter must complete (and renew every 3 years) is first aid.
To be a babysitter in Australia you must pass the Working with Children Check (or equivalent.) The requirements vary from state to state however, generally speaking, the system is designed to verify that you do not have a criminal background or any record of misconduct in the workplace.
Registration For Business
If you are fully committed to working as a babysitter it is necessary to establish an enterprise and file for tax. The procedure of getting An ABN is quite easy. Although most babysitters are ‘ sole traders, however, if you are planning to build an empire of childcare you may decide to establish a company, and in that case, you’ll require the ACN. Additionally, you’ll need to adhere to the additional rules and laws to become a full-time child care provider.
When you are earning more than $75k per year by babysitting, you’ll also have to be registered for GST.
The Insurance For A Business That Provides Babysitting
The care of your children is a huge responsibility that carries significant risk. If you are involved in an accident and you are liable, you can face massive financial and personal consequences and a properly insured policy is essential.
As a babysitter, you should consider investing in the following types of insurance, or a babysitting/childcare package that bundles them together within a single policy:
- Insurance for professional indemnity
- Insurance for public liability
- Insurance for property (if you care for children at your premises or home)
- Insurance to protect your income
The Essential Equipment Required To Begin The Business Of Babysitting
The equipment you will require to be a professional babysitter will be dependent on the way you work. If you care for a child at home, most of the equipment you require is likely to be provided. If you care for children at home or on your premises, you could require some or all of the below:
- Safety and Health First aid kit Emergency contact list, car seats hand sanitizer tissues wipes, nappies.
- Fun and learning Games, toys, and art materials, as well as learning tools.
- Other: Food, phone, cash.
Promote Your Company
If you’ve crossed all of the I’s and crossed the T’s it’s time to get to work. However, you shouldn’t expect your parents to call you from the air You must actively advertise yourself to grow your business.
Marketing is one of those subjects that requires guidance. However, many most efficient methods are:
- Website regardless of the size or the shape of your company you require a website. Why? It can make you Googleable! Do not worry because using Square Online to create your website is easier than ever before.
- Social media: Social media platforms such as Facebook and Instagram can be extremely effective marketing tools, but as a babysitter, you have to be aware of the fact that many parents don’t want you posting images that show their child. Be sure to ask permission before taking part in this, but when parents agree then have fun!
- “Word of Mouth” Word of mouth: The most effective instrument in a babysitter’s advertising weapon is word of mouth. Parents trust the advice of their parents and when they share their experiences you’d like to be the one when it’s spoken of. Start by spreading the good news about your business via friends, family, and former colleagues. Lastly, as you begin to establish you’re established, you should be active in seeking reviews from your clients.
What Is The Cost You Can Be Charging Your Customers?
The typical hourly rate an Australian babysitter is charging in 2022 is $21.74, with minor differences between States and cities. There are some differences in childcare, where taking care of several children can bring the cost per child down however the overall earnings potential increases.
How To Start A Babysitting Business
- Plan your Babysitting Business
- Make Your babysitting Business into a legal entity
- You can register your babysitting business for tax purposes
- Open a Business Bank Account and a Credit Card
- Install Accounting for your Babysitting Business
- Find the necessary permits and Licenses for your babysitting business
- Get Babysitting Business Insurance
- Define your Babysitting Business Brand
- Create your Babysitting Business Website
- Create the Business Phone System
Step 1: Plan Your Business
A well-defined plan is crucial to success as a business owner. It can help you map the particulars of your venture and help you discover certain areas of uncertainty. The most important things to be aware of include:
- How much are a start-up and ongoing costs?
- Who is your ideal customer?
- What price can you cost customers?
- What is the name you will give your company?
Step 2: Create A Legal Entity
The most commonly used structures for business are the sole proprietorship or partnership, as well as the restricted liability corporation (LLC) and the corporate.
The legalization of a business entity like an LLC or corporation will protect you from being personally responsible if your babysitting business gets legally sued.
You can start an LLC by yourself and pay the minimal state LLC cost or contract one of the best LLC services for a modest, extra cost.
Step 3: Register For Taxes
You’ll need to sign up for various federal and state taxes before you can open your business.
To be able to pay taxes, you must submit an EIN. It’s simple and cost-free!
Step 4: Create A Business Bank Account And Credit Card
The use of specific credit and business banking accounts is crucial for protecting personal assets.
If your business and personal accounts conflict the personal assets (your car, home, and other assets) are at risk if your company is being sued. In the field of business law, this is referred to as cutting through the company veil.
Step 5: Create A Business Accounting System
The recording of your different income and expenses is essential to understand the business’s financial performance. Making sure you have accurate and complete financial records will greatly ease the tax filing process for your annual year.
Step 6: Apply For The Required Permits And Licenses
Failure to obtain required permits and licenses could result in substantial fines, or cause your company to shut down.
Step 7: Purchase Business Insurance
As with permits and licenses, Your business requires insurance to run legally and safely. Corporate Insurance ensures your business’s financial security in the case of a covered loss.
There are a variety of insurance policies that are designed to cover different kinds of businesses with various risks. If you’re uncertain about the kinds of risks your company is likely to encounter, begin with General Liability Insurance. This is the most commonly used insurance that small-sized businesses require which is why it’s an excellent starting point for your company.
Step 8: Define Your Brand
Your brand represents what your business represents and how you are perceived by the general public. A well-established brand can make your company stand above the competition.
Step 9: Create Your Own Business’s Website
After you have defined your brand’s image and created your logo, the following step will be to build the website for your company.
Although creating a website is a crucial stage, some might be worried that it’s beyond their reach since there isn’t any previous website-building expertise. Although this might have been an appropriate fear in 2015, the world of web technology has made huge advances in the past couple of years, making the lives of small-scale business owners much easier.
Here are the top reasons to not put off creating your site:
- Every legitimate business has a website’s complete stop. The size, or type of industry, of your company, doesn’t have any bearing on making your business accessible online.
- Social media profiles like Pages on Facebook or LinkedIn professional profiles aren’t substitutes for a business website that you have.
- Website builder tools, such as those from GoDaddy Website Builder have made the process of making a basic site easy. It is not necessary to pay web developers or professional designers to build a website that you will look proud of.
Step 10: Configure The Business Telephone System
Setting up a telephone for your company is among the most effective ways to keep your private and your business life distinct and private. It’s not just about the benefits, however; it will also help automatize your business and also gives your business credibility, and makes it easier for customers who are interested in your services to locate and reach you.