Common Mistakes New Nanny Agencies Make And How To Avoid Them
Starting a nanny agency can be a fulfilling and profitable endeavor, but like any industry, it comes with its own set of challenges. Many new nanny agencies make preventable mistakes that slow their growth, create inefficiencies, and reduce profitability. The good news? With the right guidance, you can avoid these pitfalls and build a nanny agency that thrives from the start.
Let’s dive into the biggest mistakes new nanny agencies make—and how you can avoid them.
Mistake #1: Lacking a Clear Plan
Many new nanny agency owners jump right into the business without a solid plan. Without clear goals, pricing strategies, and operational processes, it’s easy to become overwhelmed and struggle with consistency. Furthermore, the pressure caused by overwhelm can also lead new agency owners to feel discouraged, doubtful, and stressed, which can result in other problems.
How to Avoid It:
Outline a detailed plan that includes understanding your target market in depth, pricing structure, revenue goals, and your marketing strategy.
Set profit margins for each service line to ensure sustainable growth.
Create an operating manual that documents key processes–this will make it easier to delegate as you grow. The main three processes for nanny agencies are the client registration process, candidate screening process, and the placement process.
📌 MMC Tip: Anytime you introduce a new service or change a workflow, document it so you can train your team efficiently in the future.
Mistake #2: Underpricing Services
New agency owners often price their services too low. Although low pricing can attract business initially, it often leads to thin profit margins and financial struggles down the line.
How to Avoid It:
Research industry standards and price your services based on the value you provide, not just what competitors charge.
Factor in hidden costs like recruitment expenses, liability insurance, background checks, and your time.
Regularly assess your profit margins to ensure your business remains financially healthy. We like for temporary agencies to operate with at least a 35% gross margin and permanent agencies to operate with a 70% gross margin.
📌 MMC Tip: Pricing your services too low attracts bargain hunters, not clients who value quality. Instead, focus on delivering premium services that justify your rates.
Mistake #3: Ignoring the Importance of Contracts
Without properly drafted contracts, agencies can face client disputes, legal issues, and unpaid invoices. Some new agencies rely on verbal agreements, which leaves them vulnerable.
How to Avoid It:
Use legal contracts specific to your service area for families and nannies, outlining clear expectations, payment terms, and policies.
Invest in professional templates to ensure your contracts protect both parties.
Clearly communicate policies around cancellations, refunds, and replacements.
📌 MMC Tip: If you’re unsure how to draft a solid contract, invest in a legally vetted contract template or consult a professional lawyer licensed in the area you serve.
Mistake #4: Not Investing in Training and Onboarding
Many agencies focus on placement but neglect the training and onboarding process for both nannies and agency staff. A lack of proper onboarding can lead to high turnover and dissatisfied clients.
How to Avoid It:
For agencies that employ their nannies, develop a structured onboarding program to train nannies on professionalism, safety, and communication.
Educate staff members on talking to clients, client management, and compliance.
Offer continuing education opportunities to improve the quality of your placements.
📌 MMC Tip: Well-trained nannies provide better service, leading to higher client retention and more referrals. Offer guides, blogs, and resources to help them excel.
Mistake #5: Overlooking the Power of Marketing
Many new agencies rely on word-of-mouth alone and don’t invest in digital marketing. Without consistent marketing efforts, it's difficult to attract new clients and nannies.
How to Avoid It:
Build a professional website showcasing your services, testimonials, and application process.
Use SEO strategies to rank for key terms like "Nanny Agency in YOUR AREA" and "Professional Full-Time Nanny."
Create a lead magnet that potential clients can download from your website. It will help you become the expert in your area and keep you top of mind through follow-up emails.
Get out into the community and build connections with local business owners who serve your target audience. The more your ideal clients hear about you, the more likely they are to sign up and engage with your services."
📌 MMC Tip: Marketing isn't an expense—it’s an investment. Create a content strategy that positions you as an industry authority and builds trust with potential clients.
Mistake #6: Failing to Screen Nannies Thoroughly
A bad hire can damage your agency’s reputation. Some new agencies rush placements without conducting thorough background checks or face to face interviews.
How to Avoid It:
Implement a rigorous screening process that includes reference checks, background checks, and in-depth interviews.
Use behavioral interview techniques to assess candidates’ reliability and problem-solving skills.
Set high standards for the nannies you represent to maintain client trust.
📌 MMC Tip: Your agency's reputation is built on the quality of your placements—invest the time to screen candidates properly.
Mistake #7: Not Offering Additional Services
Many agencies focus only on standard placements and miss out on opportunities to increase revenue through additional services.
How to Avoid It:
Offer backup care services, babysitting memberships, or consulting for families that need long-term childcare planning.
Introduce training programs for nannies to enhance their skills and provide extra value to families.
Create premium packages for clients who need extra support, such as VIP nanny placement or ongoing childcare coaching.
📌 MMC Tip: It’s cheaper to sell additional services to existing clients than to constantly market to new ones.
Mistake #8: Trying to Do Everything Alone
New agency owners often wear too many hats and struggle to delegate. This leads to burnout and limits business growth.
How to Avoid It:
Hire support staff or outsource tasks like administrative work, marketing, or bookkeeping.
Join a community group like MMC’s "Arise Community" to connect with other agency owners and learn from shared experiences.
Use automation tools for scheduling, invoicing, and communication to save time.
📌 MMC Tip: A successful business isn't about doing everything yourself—it’s about building a strong team and smart systems.
Set Your Nanny Agency Up for Success
Starting a successful nanny agency requires planning, strategy, and having a community to support you during the journey. Although starting a successful agency can be daunting and comes with its fair share of challenges, you can learn from other agencies and their mistakes to create a successful agency from the start. By avoiding the common pitfalls we mentioned, you’ll set yourself apart from competitors and build a thriving, profitable agency.
Want to hear about the five surprising things I wish I knew?
At Megan Metzger Consulting (MMC), we’re here to support you every step of the way! Whether you need one-on-one coaching, a community of like-minded business owners, or training programs to help streamline your agency, we’ve got the resources you need.
👉 Access nanny agency templates, resources, and FREE bonuses HERE
Let’s build a business that supports you, your team, and your clients!
