Over the past few decades, the use of functional magnetic resonance imaging (fMRI) on neonates and very young children has increased dramatically in research and clinical settings. However, the specific characteristics of this population and the MRI standards largely derived from adult studies, pose serious practical challenges. The current study aims to provide general methodological guidelines for customized neonatal fMRI by assessing the performance of various fMRI hardware and software applications. Specifically, this article focuses on MR equipment (head coils) and MR sequences (singleband vs. multiband). We computed and compared the signal-to-noise ratio (SNR) and the temporal SNR (tSNR) in different fMRI protocols using a small-size spherical phantom in three different commercial receiver-only head-neck coils. Our findings highlight the importance of coil selection and fMRI sequence planning in optimizing neonatal fMRI. For SNR, the prescan normalize filter resulted in significantly higher values overall, while in general there was no difference between the different sequences. In terms of head coil performance, the 20-channel head coil showed slightly but significantly higher values compared to the others. For tSNR, there was no difference in the usage of the prescan normalize filter, but the values were significantly higher in the singleband EPI sequences compared to the multiband. In contrast to the SNR, the pediatric head coil seems to have an advantage for tSNR. We provide five practical guidelines to assist researchers and clinicians in developing fMRI studies in neonates and young infants. These recommendations are especially relevant considering ethical constraints and exogenous challenges of neonatal fMRI.