business plan for dog daycare

Dog Daycare Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their doggie daycares. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a dog daycare business plan template step-by-step so you can create your plan today.

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What is a Dog Daycare Business Plan?

A business plan provides a snapshot of your dog daycare business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Dog Daycare

If you’re looking to start a doggie daycare or grow your existing doggie daycare you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your dog daycare in order to improve your chances of success. Your dog daycare business plan is a living document that should be updated annually as your company grows and changes.

Source of Funding for Dog Daycare Centers

With regards to funding, the main sources of funding for a dog daycare are bank loans, personal savings, credit cards and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

Another common form of funding for a dog daycare is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a doggie daycare. They might consider funding a chain, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an initial investment, and an individual location could never achieve such results.

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Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of dog daycare business you are operating and the status; for example, are you a startup, do you have a dog daycare that you would like to grow, or are you operating a chain of doggie daycare businesses.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the dog daycare industry. Discuss the type of dog daycare you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of doggie daycare business you are operating.

For example, you might operate one of the following types:

• 100% cage-free : this type of doggy daycare allows dogs to freely roam the facility, under the supervision of a staff member.
• Cage-free play : this type of doggy daycare typically cages the dogs for a portion of the day, and allows dogs to play outside their cages at certain times.
• Kennel : this type of doggy daycare offers cages or runs where the dog remains for the entirety of the stay.
• Indoor-only doggy daycare : this type of dog daycare has indoor-only facilities, where dogs interact and play indoors, as well as relieving themselves in a designated indoor area.
• Indoor and outdoor doggy daycare : this type of dog daycare has both indoor and outdoor areas for dogs to enjoy.
• Extended-stay dog boarding : this type of doggy daycare provides care for an extended time while the owners are on vacation.

In addition to explaining the type of doggie daycare you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new facility openings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the doggie daycare business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the dog daycare industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards 100% cage-free dog daycare, it would be helpful to ensure your plan calls for this accommodation.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your doggie daycare business plan:

• How big is the dog daycare business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your dog daycare. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your doggie daycare business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: pet owners aged 30 to 49; pet owners aged 50 to 64, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of doggie daycare you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing promotions than millennials.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most doggie daycares primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

If you plan to offer extended-stay dog boarding as well, you may want to consider segmenting customer behaviors as well. Local dog owners who are planning a vacation would be a targeted segment for marketing and advertising.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other doggie daycare businesses.

Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors, such as dog walkers. You need to mention such competition to show you understand that not everyone who owns a dog uses a doggie daycare each day.

With regards to direct competition, you want to detail the other dog daycare centers with which you compete. Most likely, your direct competitors will be dog daycares located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What dog daycare services do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to stand outside your competitors’ locations and ask customers as they leave what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior dog daycare services?
• Will you provide doggie daycare services that your competitors don’t offer?
• Will you make it easier or faster for customers to use your services (e.g., reservations via a mobile app)?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan. This might include adding grooming services, boarding services, mobile-friendly services or other pet care services. Also, consider getting involved with your local animal shelters to build community involvement and spread the word about your dog daycare facility.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a dog daycare business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of dog daycare that you documented in your Company Analysis. Then, detail the specific services you will be offering. For example, in addition to regular dog daycare, will you offer items such as premium food, a water park, one-on-one staff attention, grooming, etc.?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your dog daycare. Document your location and mention how the location will impact your success. For example, is your doggie daycare located next to a heavily populated office building, or gym, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your dog daycare marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your dog daycare’s front store extra appealing to attract passing customers
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Partnerships with local organizations (e.g., pet store purchasers get a free day of dog daycare with each $100+ purchase)
• Social media marketing
• Local radio advertising
• Banner ads at local venues

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your dog daycare such as check-in, procuring supplies, keeping the facility clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

To demonstrate your dog daycare’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the dog daycare business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in dog daycares and/or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 50 customers per day or 100? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your dog daycare, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a dog daycare:

• Location build-out including design fees, construction, etc.
• Cost of equipment like kennels, dog beds, activity centers, etc.
• Cost of food and treats and maintaining an adequate amount of supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your facility design blueprint or location lease.

Doggie Daycare Business Plan Summary

Putting together a business plan for your dog daycare is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert dog daycare business plan; download it to PDF to show banks and investors. You will really understand the dog daycare business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful dog daycare. You will know everything you need about opening a dog daycare business!

Doggie Daycare Business Plan FAQs

What is the easiest way to complete my dog daycare business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Dog Daycare Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of dog daycare business you are operating and the status; for example, are you a startup, do you have a dog daycare that you would like to grow, or are you operating a chain of dog daycare businesses.

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Other Helpful Business Plan Articles & Templates

How to Write a Dog Daycare Business Plan

• January 11, 2023

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your dog daycare, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in the business plan of your dog daycare . Use this template to create a complete, clear and solid business plan that impress banks, investors and get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan for a dog daycare?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or a private grant

How to write an executive summary for a dog daycare ?

Provide a precise and high-level summary of every section that you have included in the business plan of your dog daycare business. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately.

Also make sure that the executive summary doesn’t exceed 2 pages in total: it’s supposed to be a summary for investors and lenders who don’t have time to scroll through 40-50 pages, so keep it short and brief.

The executive summary usually consists of 5 major sub-sections:

• Business overview : here you must go in detail about what is your business model: short-term vs. long-term daycare, whether you offer additional services (grooming, veterinary, etc.) and whether it’s a franchise or an independent business. Also explain where the daycare will be located, your pricing strategy and what sets you apart from other businesses.
• Market analysis : summarise the market where you will operate and provide a brief about your target market , target audience , spending capability, etc. Also give certain data points about the dog daycare industry in the area where you want to operate (size and growth), as well as an overview of the main competitors , etc.
• People : introduce the management team and employee structure
• Financial plan: how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? You can include here a chart with your key financials (revenue, gross profit, net profit )
• Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

Pet Daycare Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Dog Daycare Business Overview

Here, you shed more light on your dog day care concept while answering questions potential funders will likely ask. For instance:

• Why did you decide to open a dog daycare today?
• Where is your daycare located, and why did you choose that location?
• How many square feet is your dog day care? What are the amenities you plan to offer?
• Is this a franchise or an independent business?
• How many employees will you hire to run your day care?
• Will you provide any additional services (grooming, veterinary, etc.)?
• What legal structure will you adopt for your business?

a) History of the Project

Any business overview must start with explaining the history of the project. There are 2 components here:

• Passion & experience of the business owner
• Rationale behind opening a dog daycare today

Passion & experience

You may or may not have prior experience. If you have experience, speak about it and how it will help you to run your business. For instance, you may have worked as a manager in one of the leading dog daycare franchises in the country and want to start your own.

Is there a certain problem (or perhaps, a set of problems) that your dog daycare will solve? For example, the neighborhood where you want to operate may have many dog owners working downtown that need dog sitting services for their pets during the week.

b) Business model

This section of Business Overview should explain the model you want to adopt for your dog daycare. Here are a few questions you must answer:

• Is this an independent business or a franchise?
• Where will your dog daycare facility be located? 
• What will be the opening hours / days of your business?
• What services will you offer (dog training, grooming, pick-up-and-drop-off, etc.)

c) Pricing strategy

After explaining what type of services you plan to offer, you should lay out here your pricing strategy. Dog daycare businesses typically have different rates: hourly, daily, weekly or even monthly rates.

In addition to the prices, make sure to explain what are the services included for each. For example, you can have standard day care price packages while some customers may want to pay extra for additional services (e.g. pick up and drop off).

e) Company Legal Structure

Finally, your business overview section should specify what type of business structure you want:

• Is this a corporation or a partnership (LLC) ?
• Who are the investors? How much equity percentage do they own?
• Is there a Board of Directors? If so, whom? Do they have any experience in the industry?

3. Market Overview

A complete understanding of the market where you want to operate is important for the success of your business. That’s also something you must showcase in your business plan.

You must cover here 3 important areas:

• Industry Size & Growth : how big is the dog daycare industry in your area? What is its growth rate (or decline rate) and what are the factors contributing to its growth or decline?
• Competition Overview : how many competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?
• Customer Analysis : who is your target audience? What kind of daycare services do they need?

a) Dog Daycare Industry Size & Growth

How big is the dog daycare industry in the us.

The US pet daycare industry represents $4.5 billion and over 16,000 firms across the country: that’s an average annual turnover of $280,000 per dog daycare.

The pet daycare industry itself is expected to double by 2030 with a 10% CAGR from 2022-30 ..!

After getting a clear picture of the dog daycare industry in the US, narrow down to your location. It’s very likely that you won’t find the number anywhere (at least not for free). In that case, you can use our guide to estimate the TAM, SAM, and SOM for your business.

Here is an example of how to do it:

We already know the average annual turnover per daycare is $280,000. Therefore, if the city where you will operate has a total of 10 dog daycare businesses, the industry is worth about $2.8 million in your area.

b) Dog Daycare Competition Overview

Studying your competitors’ business models is vital. You need to understand what makes them successful or why they fail. Look into what is their business model, the services they offer, their marketing strategies, etc.

We strongly recommend to do some research and create a comparative table like the example below:

Dog Daycare SWOT analysis

SWOT stands for Strength, Weakness, Opportunities, and Threats. This analysis will help lenders and investors better understand how you compare vs. competitors as well as the overall risk and reward profile of your business.

Here is a sample that you can use as a reference:

• Strengths : 5 years of experience working in a dog day care, well-trained staff, spacious day care facility
• Weaknesses: no brand reputation, limited marketing budget
• Opportunities : day care situated in a neighbourhood with many dog owners
• Threats : popular dog day care franchises in the area

c) Customer Overview

Here, you need to show whoever looks through your business plan that you understand your target audience’s needs and preferences.

Some important points that you must include in your customer analysis include:

• Percentage of dog owners
• Number of dogs per 100 inhabitants
• Type of pet care services they need

4. Sales & Marketing Strategy

This is the section of your business plan where you outline your customer acquisition strategy. Try to answer the following questions:

• What is your Unique Selling Proposition (USP)?
• What are the different marketing strategies you will use?
• How do you intend to track the success of your marketing strategy ?
• What is your CAC or customer acquisition cost?
• What is your marketing budget?
• What introductory promos and offers do you intend to provide for attracting new customers?

What marketing channels do dog day care shops use?

The standard marketing channels include:

• Pay-per-click campaigns (e.g. Google ads)
• Social media
• Referral programs
• Billboards & signage

What are your Unique Selling Points (USPs)?

Your dog day care will just be one among many if you don’t distinguish yourself. Your USPs won’t be difficult to get once you’ve analyzed your target audience, competition, and business model.

For example, one of your USPs can be to pick up dogs from their owners’ homes and drop them off once your day care closes or offer lodging services for dogs whose owners travel regularly.

5. Management & People

You must address 2 things here:

• The management team and their experience/track record
• The organizational structure : different team members and who reports to whom?

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your dog daycare business.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

Organization Structure

Even if you haven’t already hired a manager and daycare personnel, you must provide here a chart of the organizational structure defining the hierarchy and reporting lines of your business.

Of course, the number of employees and their roles will vary depending on the capacity of your dog daycare (the number of dogs you can take care of). It will also depend on the services you offer (grooming, veterinary clinic, etc.).

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan for a dog daycare.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your dog daycare is an attractive investment.

There should be 2 sections to your financial plan section:

• The startup costs of your project (if you plan to start a new dog daycare facility, add a new location to your chain, etc.)
• The 5-year financial projections of your business

a) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a dog daycare, startup costs are all the expenses you incur before you start making sales. These expenses typically are:

• The acquisition of the real estate (if you buy)
• The lease deposit (if you rent)
• The renovation and equipment costs
• The equipment
• License & permits, business insurance, etc.

b) Financial Projections

In addition to startup costs, you will also need to build a solid 5-year financial model that you will include in your dog daycare business plan.

Note that your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 10%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of dogs you will take care of (the customers) ;
• Your expected revenue ;
• Operating costs to run the business ;
• Capex (cost to renovate the facilities, furniture and equipment, etc.)

When projecting your financials, make sure to sensitize sales volume (customers), pricing as well as the expenses (inventory, salaries, etc.). Indeed, a small change in these assumptions may have a significant impact on your revenues, and most importantly, your profits.

7. Use of Funds

This is the last section of the business plan of your dog daycare. Now that we have explained what your business model is, what type of services you offer, how you get customers, etc., this section must now answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any business plan for a dog daycare should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries and the COGS (inventory)? Or will it cover mostly the cost for acquiring the real estate and renovations?

For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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Dog Daycare Business Plan: The 2023 Getting Started Guide

While this guide covers the essentials, there is still much to delve into. You can navigate to specific sections if you already have a good understanding of what you're searching for, or continue reading from start to finish to gain a better understanding.

Get ready to give your furry friends a safe and comfortable home away from home!

How Does One Go About Starting a Doggy Daycare Business?

Before starting your dog daycare business, it's essential to have a clear understanding of several tried and tested concepts as it applies to building a business case and plan. To ensure a solid foundation for your new pet care business, you should begin by creating a detailed financial business plan.  

Profitability calculations will help you establish a path that best suits your situation and goals. To be able to make such calculations, you need to think about a few key questions: 1. What is my mission or goals? 

2. What is my branding and marketing strategy?

3. What kind of competition am I up against?

4. What location should I build my dog daycare business?

5. What licenses, rules and regulations should I be aware of?

6. How much money can I earn running a doggy daycare?

To investigate steps 1-5 a little further, check out our article about starting doggy daycare business  before reading on.

This article focuses on (the 6th step) the creation of your dog daycare business plan.

So how much can you earn running a doggy daycare? And is it worth it? Let's find out.

Will your dog daycare business be profitable?

Luckily it's an easy process to find out.

And we've made it even easier with a detailed calculator below . But first let's learn a little bit more about what we need to find out and plug into this tool.

To ensure profitability in your dog daycare business, it is crucial that the revenue generated from customer payments surpasses the costs associated with providing those services.

Expected Costs:

• Maintenance
• Salaries & Commissions
• Dog food & Treats

For example: to calculate total monthly staff salaries: (# of staff ) x ($ staff hourly wage) x (# of hours per week) x (4.345 Weeks Per Month) x (# of Doggy Daycare Locations)

Note: There are on average 4.345 weeks per month in a given year.

Expected Revenues:

• Doggy Daycare
• Pet Sitting

For example: to calculate the Doggy Daycare Revenues: (Full-Day Daycare $ Rate) x (# Full-Day Services Completed Per Week) x  (4.345 Weeks Per Month) x (# of Doggy Daycare Locations).

Managing the numerous variables involved in operating a profitable dog daycare can be a challenging task. However, by using the appropriate equations and considerations, you can better understand and manage these factors.

These costs can be categorized into two broad categories: Selling, General, and Administrative (SG&A) expenses and Cost of Goods Sold (COGS).

SG&A expenses are indirect costs that are not directly tied to the production of goods and services, such as salaries (facility workers like reception or cleaning staff, marketing and advertising expenses, legal and professional fees, rent and utilities, and other administrative expenses.

COGS , on the other hand, includes the direct costs associated with producing and selling goods, such as materials, labor, and overhead expenses directly tied to the production of services. More specifically, a professional groomer working out of your doggy daycare facility receives 70% commission  for any revenue you make from their services. This would go into the COGS.

Both SG&A and COGS are important metrics for measuring a company's financial performance and profitability, as they provide insight into the efficiency and success of a company's operations.

Calculating Profit from Revenues

Over a period of time, usually monthly: Gross Profit = Total Revenue - Cost of Goods Sold (COGS)

Gross profit is a key financial metric that measures a dog daycare's profitability after accounting for the direct costs of producing and

selling its goods or services. It is calculated as the difference between total revenue and the Cost of Goods Sold (COGS). Gross profit is expressed as a dollar amount and as a percentage of total revenue, and provides important information about the success of a doggy daycares core business operations. Gross profit is calculated by subtracting COGS from total revenue. For example, if a business generates $100,000 in total revenue that month and its groomers and pet sitters take a commission of 70% which is $70,000, its gross profit would be $30,000 ($100,000 - $70,000).

Gross profit is an important metric for evaluating a company's financial performance and profitability because it provides insight into the efficiency of a company's operations. 

Net Operating Profit

Over a period of time, usually monthly:

Net Operating Profit = Gross Profit - Indirect Costs (SG&A)

Net Operating Profit is a measure of a company's profitability that takes into account all operating expenses associated with running the business. It represents the amount of money a company earns after deducting all costs involved in producing and selling its products or services.

The net profit equation is calculated as follows:

Net Profit = Net Operating Profit - Non-Operating expenses 

Listed below are the more common non-operating expenses that a doggy daycare business owner needs to consider:

• Interest expenses: This includes interest on loans or other debts the company has taken on.
• Taxes: This includes any taxes the business may have to pay, such as income tax, property tax, or sales tax.
• Depreciation: This is an accounting expense that reflects the wear and tear of the company's assets, such as its building, equipment, and vehicles.
• Losses from investments: This includes losses from investments the company may have made in other businesses or financial instruments.
• Legal fees: This includes fees associated with any legal matters the company may be involved in.
• Bad debts: This includes any debts that the company is unable to collect from customers.
• Amortization of intangible assets: This includes the expense associated with the gradual reduction in value of intangible assets, such as patents or trademarks.

How To Price Your Doggy Daycare Business?

When the net profit is positive, this means that the business is making more money than it is spending, but even then you need to consider whether the amount is worth your while.

If the net profit is negative, the business is losing money, and it is important to identify the reasons for this loss and take corrective action (maybe you overestimated a cost or underpriced a service or two).

Don't worry if all the above equations and factors seem complicated - Easy Busy Pets has taken care of everything for you. Our Doggy Daycare Profitability Calculator is here to help you analyze your approximate profits with ease.

Start your profit analysis now!

Key Factors For A Winning Dog Daycare Business Plan

✅strong branding, ✅understanding competition, ✅location, location, location.

These concepts are further discussed in a sister article about starting a doggy daycare business . 

✅Modern Doggy Daycare Software

Here at Easy Busy Pets, we are dedicated to delivering the ultimate dog daycare software experience for business owners like you. If you're looking for a top-notch solution to streamline your doggy daycare and grooming operations, don't hesitate to reach out to us. Our team is ready and eager to provide you with more information and help you take your business to the next level. Contact us today !

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Dog Daycare Business Plan Sample

Published Dec.11, 2017

Updated Apr.22, 2024

By: Cynthia Turner

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Table of Content

Doggie daycare business plan for your own dog kennel

Are you planning to start a dog daycare business? Well, dogs are the most popular pet in the world especially in the United States where 89.7 million dogs were owned as pets in 2017. Most of these dog owners need the services of dog daycare centers which can take care of their beloved dogs when they are not around. The people in the United States never hesitate to spend on their pets, for instance, the US residents spend tens of billions of dollars on their pet friends, the majority of which are dogs. This shows how profitable a dog daycare business can be. So, if you are thinking about starting this venture you should know that you can earn some serious cash provided you plan your business efficiently.

The first thing before starting any business is to write a comprehensive business plan which establishes the basis of your company’s future operations and decisions. It also provides detailed guidelines about everything you will be doing in the next few years. If you are wondering how to write an effective dog daycare business plan then here we are providing you the business plan for a dog daycare startup named ‘The Dog Cave’.

Executive Summary

2.1 the doggy daycare business.

The Dog Cave will be located at the East Lake Shore Drive District in Chicago, Illinois. We will be strategically located in one of the richest neighborhoods in the United States. The company will be licensed by American Pet Association and equipped with all resources and manpower to provide the highest quality of services possible. The business will be owned and operated by Dr. John Spenks, a renowned veterinary doctor of the United States. Dr. Spenks studied Veterinary Sciences from the University of Florida and had been serving in various Government as well as privately-owned veterinary and pet care centers throughout the United States for the last 20 years. It is probably due to his vast experience spanning two decades that he knows everything about how to start a dog daycare business .

2.2 Management

The company will be initially launched as a small startup operating only in Chicago. Dr. Spenks will manage the overall operations of the company and will be assisted by his nephew Mike Spenks, who is an MBA from Harvard and has served in various managing positions at many small and medium-sized businesses. Mike will also manage the finances of the company. Opening a dog daycare business plan is not an easy task that’s why Dr. Spenks will hire a team before the company’s launch to help him throughout the process.

2.3 Customers

The company aims to serve one of the richest residential zones of the United States. The community living in the region has the annual mean household income of $593,454; hence, they can easily afford our quality services .

2.4 Target of the Company

The company aims to provide highest quality service to its customers and become the best daycare center in Chicago within three years of its launch. Dr. Spenks also plans to launch a few more centers in other cities as well.

2.4.1 Objectives

The target of the company can be achieved by fulfilling the following objectives:

• To achieve the net profit margin of $30k per month by the end of the first year
• To increase the profit margin by at least 20% each year
• To balance the initial cost of startup with earned profits by the end of three years

The company’s financial experts have forecasted following sales and profits for the next three years of launch.

2.4.2 Keys to Success

The keys to the success of fulfilling our objectives and achieving our target are as follows:

• Comprehensive planning of ‘everything
• Hiring the best staff for operations
• Respecting our customers and their beloved pets
• Maintaining strict checking on the staff with reference to health and cleanliness aspects of the facility

Company Summary

3.1 company owner.

The Dog Cave will be owned by Dr. Spenks who has been in veterinary and pet care industry for the last 20 years. Dr. Spenks has been planning this startup for the last couple of years and hence perfectly knows how to open a dog daycare business and operate it to yield profit even in the first year of launch.

3.2 Why the Dog Daycare Business is being started

Dr. Spenks has always wanted to start start a doggie daycare business  plan out of his love for dogs and had been planning for it for quite a time. But he finally decided to start this venture after receiving his share of wealth from his father recently. Starting this business was undoubtedly the best way to not only invest his money but also to fulfill his long-awaited dream.

3.3 How the Doggie Daycare Business will be started

The Dog Cave will be a bonded, insured and licensed dog daycare business. Dr. Spenks is nearly halfway through the process of acquiring a license for the company and has already procured a beautiful facility near the residential zone of the city. The facility was previously used as local school so a lot of work will be required to convert it into a dog daycare center. Dr. Spenks has acquired the services of a contracting firm which is currently working on the facility. Dr. Spenks has planned everything about his business. He has even hired a team of professional experts from various fields to just help him craft a detailed plan for his venture. His nephew, Mike, will be in charge of all financial activities and will oversee other experts. The initial main expenses for the startup include rent of the facilities and other utilities along with the expenses due to marketing or advertising of the company. After that, the biggest expense will be in the inventory needed for start-up including shampoo, grooming products, food and other supplies for the dogs. All the initial investment will be made by Dr. Spenks himself and he won’t need any loans, at least for the first year of operations. Mike, with the help of financial experts, has forecasted following costs for expenses, assets, investment, and loans for the Start-up.

The detailed start-up requirements, start-up funding, start-up expenses, total assets, total funding required, total liabilities, total planned investment, total capital and liabilities as forecasted by experts, is given below:

Services for customers

Our dog day care center is primarily aimed to provide a place to dog-owners where they can leave their dogs anytime. We will take care of our customer’s dogs while they are at work, or away on a vacation, or enjoying a weekend trip. Besides providing a safe place for their dogs, we will also provide many other services which are:

• Dog training
• Exercising and feeding
• Veterinary services
• Washing and grooming

Along with these services, we will also open a small store for selling pet-related products like shampoos, foods, medicines, ties, chains, and clothes for the dogs.

Marketing Analysis of dog daycare business

The most important and difficult part of developing an effective  dog daycare business plan  was its accurate marketing analysis that’s why Dr. Spenks acquired the services of marketing experts. They not only helped him throughout the process but also showed him several  dog daycare business plan samples  to give him an idea about how to carry out an accurate marketing analysis. Dr. Spenks then made his own  doggie daycare business plan  after he had gone through various  dog day care business plans . The success or failure of a startup is totally dependent upon its marketing strategy which can only be developed on the basis of accurate marketing analysis. There are four main steps to carry out an accurate marketing analysis which are to identify the current market trends of your business, identify your target audience and potential customers, set out the business targets to achieve, and finally set the prices of your products or services in accordance with the first three steps.

Operational and Strategic Planning

5.1 market trends.

The pet industry is one of the few industries which have seen a consistent increase in revenue. According to the American Pet Products Association, the residents of US spent a staggering amount of $60.28 Billion in 2015, $66.75 Billion in 2016, and are estimated to spend $69.36 by the end of 2017. These stats show that this industry can be immensely profitable provided that you market yourself successfully. The most interesting aspect of this industry is its dynamic nature. With latest technologies and luxurious pet products, pet owners’ demands have also changed accordingly. The need for daycare centers, especially for the dogs which is the most favorite pet in the United States, has increased the demand for such facilities beyond limits. Especially for the regions housing well-off community are in a dire need of daycare facilities.

5.2 Marketing Segmentation

A startup must develop a good plan to market itself to its target customers. A successful and efficient marketing strategy can only be developed after we completely know our potential customers. That’s why our marketing experts carried out an extensive research to identify our target customers and develop an effective marketing strategy for them. Our experts have identified the following type of target audience which can become the future consumers of our services and products:

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Individual Households

The biggest consumer of our services and products will be the community living in the residential zones of Chicago. We will specifically target the neighborhood of East Lake Shore Drive which is also the location of our facility. The residential community often has to leave their homes for various purposes and most of the time they can’t take their dogs with them. That’s why they will need our daycare services throughout the year. Moreover, they are also much likely to acquire our dog grooming, washing, training and veterinary services along with the purchase of pet products from our adjacent store. These individual households will contribute the biggest portion of our sales hence they have a major role in deciding our strategies and policies.

5.2.2 Corporate Organizations

Many corporate organizations like police or security agencies also own a lot of detective dogs. We also plan to serve them by providing dog grooming, washing, and veterinary services. Although these organizations also own trained staff for these purposes yet they can still become our potential customers of various pet products like food, medicine, clothes etc.

5.2.3 Dog Dealers

There are also various dog dealers in the central business district of Chicago city. Although they a little far from our facility center but we have made a plan by which we can attract these dealers. We will arrange special transportation facilities for them so that they can easily bring their dogs to us. We will also offer special packages and discounts for the purpose of attracting them towards our services. We hope that these dealers will also help us generate a lot of revenue.

5.2.4 Animal Shelters

There are more than 3500 animal shelters in the United States for accommodating abandoned, stray, or lost animals. We also hope to target hundreds of animal shelters present in Chicago for washing, grooming, and veterinary services. We will also provide them transportation services and special offers. The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

We aim to become the best dog care business in Chicago within next three years. Our business target is to balance the cost of our startup within just three years of our launch.

5.4 Product Pricing

We have priced our products and services in the similar ranges as of our competitors. For daycare services, we have developed various plans for charging our customers such as per hour, per day and per week plans. We will provide better services than our competitors for the same prices. The reason behind this pricing policy is to achieve our minimum attractive rate of return while also attracting the customers towards us.

Dr. Spenks carried out extensive research and hired financial experts to help him develop an effective marketing and sales strategy for the startup. The experts made a detailed strategy for him to start dog daycare business .

High Quality Business Plan and Professional Support

It was amazing to work with OGS Capital for our business plan. They promptly responded our enquires and delivered document on time.The document was well organized high quality and content.We succeded with Alex and his team support. We thank you guys again for professional approach and easy communication.

It wasn’t that Dr. Spenks didn’t know how to open a doggie daycare business , he only took help from various experts to ensure the success of this great venture. The strategy of our company as developed by the experts is as follows:

6.1 Competitive Analysis

We have a really tough competition because there are several other dog daycare centers in Chicago, many of them are established since decades. But still, Dr. Spenks is positive that our company will beat all of the competitors within no time. Our competitive edge will be our better quality and luxurious services within the same amount as that of our competitors. Our second competitive edge will be our unparalleled customer service where we will treat our customers and their beloved pets with extreme respect.

6.2 Sales Strategy

We will introduce our startup to our target customers and stakeholders by sending brochures and introductory letters about us. We will also carry out a large-scale social media campaign for our advertisement.

6.3 Sales Forecast

We believe that people will always leave their dogs with us if they use our service even for once. Considering the market demand and the quality of our services, our sales pattern is expected to increase with years. By analyzing our market segmentation strategy, our experts have forecasted the following sales on the yearly basis which are summarized in the column charts.

The detailed information about sales forecast, total unit sales, total sales is given in the following table.

Personnel plan

Dr. Spenks acquired the services of a Human Resource Manager for helping him develop a personnel plan to open dog daycare business . He developed the following personnel plan for the staff needed for the dog daycare center along with their average salaries with the help of experts.

7.1 Company Staff

Dr. Spencer will manage the overall operations of the daycare center. The company will initially hire following people

• 1 Accountant to maintain financial records.
• 4 Sales and Marketing Executives responsible for dealing with corporate businesses, dog dealers, and animal shelters
• 15 Workers for performing various tasks such as feeding, washing, grooming, and training of dogs
• 5 Workers to maintain the facility and for doing its routine cleaning
• 4 Drivers to transportation of dogs owned by dealers, organizations, and shelters
• 1 Front Desk Officer to act as a receptionist in the company office
• 1 Salesperson to operate pet products store

To ensure the best quality service, all employees will be selected through vigorous testing and will be trained for a month before starting their jobs.

7.2 Average Salary of Employees

The following table shows the forecasted data about employees and their salaries for next three years.

Financial Plan

Mr. Spenks with his nephew Mike developed the financial plan for his business. Mike, being a financial expert, helped him through all the problems encountered in this phase. The problem wasn’t about how to open your own daycare business but the problem was how you plan it incorporating all financial aspects. The financial plan developed by them outlines the development of company over the next three years.

8.1 Important Assumptions

The company’s financial projections are forecasted on the basis of following assumptions. These assumptions are quite conservative and are also expected to show deviation but to a limited level such that the company’s major financial strategy will not be affected.

8.2 Brake-even Analysis

The following graph shows the company’s Brake-even Analysis.

The following table shows the company’s Brake-even Analysis.

8.3 Projected Profit and Loss

The following charts show the company’s expected Profit and Loss situation on the monthly and yearly basis.

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

The following table shows detailed information about profit and loss, and total cost of sales.

8.4 Projected Cash Flow

The following column diagram shows the projected cash flow.

The following table shows detailed data about pro forma cash flow, subtotal cash from operations, subtotal cash received, sub-total spent on operations, subtotal cash spent.

8.5 Projected Balance Sheet

The following projected balance sheet shows data about total current assets, total long-term assets, total assets, subtotal current liabilities, total liabilities, total capital, total liabilities and capital.

8.6 Business Ratios

The following table shows data about business ratios, ratio analysis, total assets, net worth.

OGS capital staff also specialize in writing business plans such as pet photography business plan , horse boarding business plan , dog walking business plan , horse training business plan , pet hotel business plan and etc.

Download Dog Daycare Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Business Operations

How to Start a Dog Daycare Business In 2023

Many dog owners work long hours, have unpredictable schedules, or just simply need to be out of the house all day. For most of them, spending all day every day with their dogs is their dream, but for many, this simply isn’t possible. 

That’s where you and your new doggie daycare business step in! Lots of pet parents are in search of a caring and reliable person to look after their fur babies and you may be just the person they’re looking for! 

Keep reading to learn how to start your very own doggie daycare and become the number 1 choice for busy pet parents in need of a loving pet professional.

How to start a dog daycare in 8 easy steps.

Step 1: perform market research..

Before you start dedicating hours to building a doggy daycare business, you first need to research the local market. Market research is the analysis of businesses in your area and focuses on the demand for dog daycares, information about the competition, and any legal and zoning requirements. 

Your research is vital for setting up your business as a true competitor in the space and ensuring you aren't hit with any fines or violations down the road.

In your market research phase, you need to also look into what qualifications and experience you would need to start a doggy daycare. For many businesses that work with animals, you need to have, at minimum, experience with those animals and their behavior. You may also need to receive training in first aid and dog CPR depending on the area you are in.

Step 2: Create a budget.

You're likely starting a dog daycare center because you have a special fondness for dogs and want to spend your days playing and caring for them…who wouldn’t! 

You probably want your facility to have the best equipment to ensure the dogs have a wonderful experience. But spending without a budget can be harmful to your business' success. Over 20% of businesses fail within the first 2 years so it’s important to look after the dollars right from the get-go.

Creating a budget will detail your business’ finances to help you better understand what's coming in and going out monthly and annually. This is to ensure you remain profitable and have enough income to cover all of your expenses. 

Budgets can seem intimidating, but they give you a detailed plan of what you expect to earn versus what you actually bring in. With a budget, you can have the tools you need to control your cash flow and avoid overspending. 

So, what should you include in your business budget? You don't need anything fancy; you can start with a simple spreadsheet, but here is a list of items to include in your budget for your dog daycare. 

• Estimated revenue: Your estimated revenue will be what you expect to make monthly. This number is a rough estimate and will come from your market research. Be realistic about your expectations and try to make an educated guess on conservative earnings. 
• Fixed costs : Fixed costs are the items you know you will have to pay for monthly that are consistent. These items include rent, insurance, dog daycare software , accounting software, and banking fees.
• Variable costs: Variable costs are expenses that can change from month to month. These are going to be things like utilities, dog toys, cleaning supplies, marketing costs, and advertising fees. 
• One-time costs: These costs are going to be an expense that you only pay once, such as buying new equipment, paying for training, and obtaining your business license and permits.

It’s a good idea to open a business bank account to keep your personal finances separate from your business finances. This is important to be able to protect your personal assets should anything go wrong. 

Step 3: Write a dog daycare business plan.

Creating a business plan for your dog daycare is essential for setting you up for success. A business plan is a detailed strategy that summarizes your goals and plans for operations, helps secure financing, and forecasts the future of the business. There's a lot that goes into building your dog daycare business plan, and it is the perfect third step on your journey to becoming a business owner.

With a business plan, you don't want to leave anything out. Here's what to include:

1. Executive summary: The executive summary is a quick outline of your business plan for your dog daycare. It will provide the details of your vision for the business, the services you'll offer, marketing strategies, and what you'll need financially to achieve your goals.

2. Company description: As you move through your business plan, the next section will provide information about your company. This will include your experience, years in the industry, what you'll offer, and a more detailed plan for the future of your dog daycare.

3. Services: This section should include the dog daycare services you plan on providing for your clients. You will want to include what each service will cost and any plans for growth or changes in the future.

4. Competitive analysis: In most industries, there's always going to be a competitor you're going up against. The best way to ensure your success is to analyze your business and see how you will differentiate from all the others in the doggy daycare industry. 

5. Marketing plan: Marketing is a broad term that covers all aspects of how you're going to get your business in front of your target demographic. Your marketing plan will cover social media, customer reviews, special promotions, and anything else that will drive your clients to your business.

6. Financial summary: Your business plan will need a financial summary of your current finances and what you expect in terms of sales and growth. It's an opportunity for you to provide information to potential investors or lenders to get the money you need to open your business.

7. Management and team: Who is going to be on board to help you execute your business plan and help you reach your goals? Detail the people in your organization and their roles in your company. If you don't have someone in a role, you can outline the positions you plan on filling in the future.

Step 4: Plan your daycare facility.

You've got your market research, business plan, and a solid budget. You now get to take on the exciting task of planning out your day care centre for dogs. 

The first thing to consider is the location of where you want your dog daycare business to reside. Many people choose to start caring for dogs in their homes, and as they grow their client list, they choose a larger commercial facility.

If you start in your home, you want to ensure you have the right equipment, facilities, amenities, and space for the number of dogs you hope to care for. 

You'll need space for:

• Multiple kennels
• Indoor and outdoor play spaces
• Comfortable bedding
• Sanitary waste disposal and management system
• Feeding areas
• Multiple water bowls

Your doggie daycare can be set up as a basic care facility, to begin with, but it’s also a good idea to consider how you can scale your business to include other services. Does your facility include a space for grooming and training? Perhaps you won’t be needing those spaces in the beginning but it’s good to have them available for when you want to scale.

Step 5: Address legal requirements for dog daycares.

Whether you operate your dog daycare from your home or a commercial facility, most dog daycares are required to follow the same legal requirements. These will be stipulated by your local government. In some states, your dog daycare facility (including home-based businesses) may also need to be licensed. Be sure to check your local government’s website to see which regulations you have to be following.

In general, most dog daycare businesses will require you to:

• Select a business structure: Choose your business structure to determine how your business can be taxed. It can be set up as a sole proprietorship, partnership, LLC, or corporation. Choosing a certain business structure also offers protection if your business is sued. 
• Register for taxes: You'll need to apply for an EIN through the IRS website to register for your business' state and federal taxes.
• Obtain a business license: Your business license allows you to legally operate in your location. You can refer to your local government's website for more information on what permits and licenses you need to apply for.
• Obtain business insurance : General liability insurance protects you in case you are sued for any injuries to pets or escaped pets that might cause damage to property.
• Obtain property insurance: Property insurance can protect your business if the property is damaged due to fires, floods, natural disasters, or more. 
• Meet zoning requirements : Your doggy daycare facility may need to comply with zoning regulations in your area. You may find that your facility has a maximum number of dogs it can look after at a time.
• Have contracts and waivers: It’s a good idea to have your clients sign liability waivers and contracts before you commence work. You can store all of these contracts and documents in a pet business software tool, such as PetExec . 

Step 6: Address health and safety requirements for dog daycares.

Checking the health and safety requirements for doggy daycare businesses is vital. You may need to follow both local and state requirements and obtain a  facility license to be in compliance with all the regulations. 

When you're housing multiple dogs, monitoring them at all times is essential in avoiding dog fights and injuries. You can invest in cameras or create a space that makes it easy for your employees to watch all the dogs at once.

Cleaning and sanitation help prevent illness from spreading amongst the dogs in your care. If your state does require your facility to have a dog daycare license then good sanitation will definitely be a requirement. Create a daily cleaning checklist to ensure the entire facility is kept clean and tidy.

Step 7: Create your daycare business marketing plan.

With any new business, you need to have a solid marketing plan to let people know you're open for business. Whether you are an introvert or an extrovert, there are plenty of ways to successfully market your new business.

Create a website. 

A website can provide potential clients with information about you and creates credibility. When a new client searches for doggy daycare, an optimized website allows your business to appear near the top of the search results allowing you to take in new clients. 

Get active on social media.

Social media is a great way to market your business and share more about your passions and day-to-day operations. You can create advertisements that appear in local feeds to get your business in front of more eyes. It's also a great way to connect with other local businesses such as veterinarians and pet stores to gain referrals. 

Collect reviews. 

As your business grows, your clients will be able to leave reviews for your business through Google and other review sites. With great customer service, you'll be able to build strong relationships with your clients and earn their trust. PetExec integrates with Broadly to make acquiring reviews a breeze.

Offer discounts and promotions to new clients.

When you're first starting out, your client base will be small, but you can start advertising discounts on services for your doggy daycare to bring in new clients. Then you can dazzle them with great customer service to keep them coming back.

Step 8: Plan daycare operations and hire staff.

Once your doggie daycare is up and running, there are steps you can take to ensure your business continues to run smoothly. Whilst caring for dogs seems like a dream to an outsider, there's a lot to take care of behind the scenes. 

When you first start out, you‘ll wear many hats as you grow and scale your business. You'll be greeting clients, regularly feeding and hydrating dogs, organizing schedules, potentially taking dogs for walks, and more. As you grow, you'll need to hire employees to take on some of the responsibilities. 

Some positions you'll need to consider include:

• Receptionist
• Accounting and bookkeeping staff member
• Employees to manage and look after the dogs
• Dog trainers/dog walkers/dog groomers 
• Social media and marketing expert

The employees you take on should be passionate about dogs and have at least some experience working with them. 

As you bring in more staff, invest in quality training, starting with customer service. Your clients will appreciate dropping their dogs off to friendly, welcoming staff. 

When the time’s right, you can also consider what services you can add to gain new clients and hold on to existing ones. You can add grooming, dog walking, and dog training services. A pet business software tool can help you schedule and manage all of the services you provide.

How can PetExec help your new dog daycare business?

PetExec can help you get your doggie daycare business off the ground. It is considered one of the best business software tools in the pet industry and can help you manage all of your day-to-day operations.

Pet business software reviews.

PetExec has countless positive reviews online from many satisfied customers. 

Software Advice:

Final Thoughts

Starting a doggy daycare can be an incredibly rewarding experience as you go into business doing something you're truly passionate about. By using this simple guide, you can learn how to start a doggy daycare and set yourself up for owning a successful business you love.

Book a free demo with PetExec today to see how they can help you on your entrepreneurial journey!

What is a doggy daycare, and what services does it offer?

Doggy daycare is a service for pet owners to be able to drop off their dogs when they are away for extended periods. Dogs are entertained through playtime or outdoor activities, are provided food and water, and are looked after until their owner returns. 

Do I need any qualifications or experience to start a doggy daycare?

To start a doggy daycare, you need to have some experience working with dogs, but you do not need any formal training or certifications. 

Can I operate a Doggy Daycare out of my home?

It depends on your location. Most cities may not allow you to run your doggy daycare out of your home without the proper zoning and licenses. Check with your local government to find out the requirements in your area.

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How to write a business plan for your dog daycare center.

Starting a dog daycare center is a great idea because it provides a safe and fun environment for dogs to socialize and exercise during the day while their owners are away.

Additionally, it offers a convenient and reliable service for busy pet owners who may not have the time to look after their dogs during the day.

But, before launching anything, make sure you have a business plan in place.

A business plan is essential to any successful project, especially when starting a new business. It outlines your vision, goals, and strategies, as well as providing a roadmap for the future. A well-crafted business plan can help you anticipate potential obstacles and plan for success.

In short, a good business plan will help ensure the profitability of your dog daycare center .

What should you include in the business plan for a dog daycare center? What's the ideal arrangement for the structure? What metrics should be considered for the financial assessment? What are some steps I can follow to quickly create a business plan?

Exciting news! The forthcoming article holds all the answers to these questions!

One last thing: you can avoid starting your business plan from scratch.

Instead, you can download our editable business plan for a dog daycare center and modify it to meet your specifications.

How to craft an elaborate business plan for a dog daycare center

Is it worthwhile to invest time in a business plan for your dog daycare center.

Yes, you should invest time in creating a business plan for your dog daycare center to ensure it is successful.

Structuring a reliable business plan will give you the means to:

• get familiar with the dog daycare market
• stay informed about current trends and integrate them into your project
• narrow down what makes a dog daycare center successful
• understand the daily routine, play preferences, and socialization needs of dogs in daycare
• find a great unique value proposition for your canine day-care facility
• assess competitive positioning
• find competitive advantages for your dog daycare center
• find a business model that will generate positive cash flows
• implement a well-crafted and strategic action plan for growth
• evaluate risks associated with running a dog daycare center, including animal behavior, safety protocols, and liability for pet injuries

Our team has drafted a business plan for a dog daycare center that is designed to make it easier for you to achieve all the elements listed.

How to organize a business plan for a dog daycare center?

There's a lot of valuable information, content, numbers, and financial data in a business plan. It should be arranged in a way that makes it simple to read and comprehend.

When we designed our business plan for a dog daycare center , we took care to arrange it appropriately.

The content is arranged in 5 sections (Opportunity, Project, Market Research, Strategy and Finances).

1. Market Opportunity

The first section is named "Market Opportunity."

This section presents an in-depth analysis and statistics regarding the dog daycare market, offering valuable insights to entrepreneurs in the pet care industry.

We update this section often to keep the data fresh.

2. Project Presentation

The "Project" section is dedicated to describing your dog daycare center, including the spacious play areas, experienced staff, and unique value proposition that provides a safe and enjoyable environment for dogs.

Also include a short description about yourself at the end of this section.

Explain your love for dogs, your experience in pet care, and how you plan to create a safe and engaging environment for dogs at your daycare center. Highlight your dedicated play areas, your qualified staff, and your commitment to providing stimulating activities and personalized care that keep dogs happy, healthy, and socialized through your dog daycare center.

We put together some text in our business plan. Adapt it to fit your concept precisely.

3. Market Research

Following that, we have the "Market Research" section.

This section describes the target audience for your dog daycare center.

It includes a comprehensive analysis of competitors in the pet care industry and emphasizes your center's competitive advantages.

A tailored SWOT analysis is provided as well.

4. Strategy

Within the "Strategy" section, a 3-year development plan is outlined, specifying the necessary initiatives to make your dog daycare center highly profitable.

Moreover, this section encompasses a marketing strategy for a dog daycare center, a risk management approach, and a completed Business Model Canvas.

5. Finances

In summary, you'll find the "Finances" section, which presents all the financial data for your project.

How to elaborate the Executive Summary for a dog daycare center?

The Executive Summary provides an initial glimpse into the business plan of your dog daycare center.

Keep it concise and within 2 pages. Highlight only the necessary details.

When you show your business plan to investors, this is the first glimpse they will get. It needs to immediately grab their attention and make them want to read the rest of the plan.

In the Executive Summary of your dog daycare center, provide answers to these questions: what services does your dog daycare center provide? who is your target audience? are there other dog daycare centers in the area? what funding do you require?

How to do the market analysis for a dog daycare center?

Analyzing the market for your dog daycare center allows you to gain insights into factors such as customer preferences for pet daycare services, competition from other daycare facilities, and emerging trends in pet care.

By conducting a comprehensive market study, a dog daycare center can understand pet owner needs, create a safe and engaging environment, implement competitive pricing strategies, and execute targeted marketing campaigns, ultimately leading to a loyal customer base, increased pet admissions, and a prominent position in the local pet care market.

Here is what what we've put in the "Market Research" section of our business plan for a dog daycare center :

• current data and statistics on dog daycare centers, including enrollment rates, services offered, and pet care trends
• a list of potential market segments for a dog daycare center
• the competitor evaluation
• the potential competitive advantages for a dog daycare center

The key points of the business plan for a dog daycare center

What's the business model of a dog daycare center, business model of a dog daycare center.

A dog daycare center's business model centers around providing day-time care, socialization, and exercise for dogs. Revenue is generated through daycare fees, potentially offering additional services such as grooming or training classes.

The business model focuses on providing a safe and supervised dog play environment, employing trained staff, ensuring individualized care for each dog, effective marketing to target dog owners, and building strong customer relationships based on trust and care for their furry companions.

Success depends on maintaining a low staff-to-dog ratio, creating engaging and stimulating activities, delivering exceptional customer service, fostering positive dog-owner interactions, and maintaining a reputation for a fun and caring dog daycare experience.

Business model ≠ Business plan

Make sure you don't mix up the terms "business plan" and "business model."

A business model outlines the way a company creates value, generates revenue, and operates.

In a business plan, you use a tool called the Business Model Canvas to outline how your business works.

And, of course, there is a Business Model Canvas (already completed) in our business plan for a dog daycare center .

How do you identify the market segments of a dog daycare center?

Segmenting the market for your dog daycare center involves dividing your potential customers into different groups based on their dog care needs, demographics, and scheduling preferences.

These categories may include factors such as full-day daycare, half-day daycare, puppy daycare, or clients seeking specialized care (e.g., senior dogs, specific breeds).

By segmenting your market, you can offer a range of daycare programs and services that cater to each segment's specific requirements. For example, you might provide full-day daycare options for busy pet owners, offer half-day daycare for clients seeking shorter care periods, create a dedicated puppy daycare program for young and energetic dogs, or offer specialized care for senior dogs with specific needs.

Market segmentation allows you to effectively target your marketing efforts, provide a safe and stimulating environment for dogs, and build trust with pet owners by offering tailored daycare solutions that meet the unique needs of each customer segment.

In the business plan for a dog daycare center , you will find a complete market segmentation that allows you to identify your potential customers effectively.

How to conduct a competitor analysis for a dog daycare center?

Without surprise, you won't be the only dog daycare center in your city. There will be other facilities offering safe and enjoyable environments for dogs.

Make sure to conduct a comprehensive competitor analysis in your business plan, where you evaluate their strengths and weaknesses.

Explore their weaknesses (such as inadequate dog supervision, lack of structured activities, or poor sanitation practices).

Why should you focus on these elements? Well, these weaknesses can hinder the success of dog daycare centers. By addressing these aspects, you can provide a safe and stimulating environment for dogs, offer experienced and trained staff, and deliver personalized care and attention to each dog, positioning your dog daycare center as a trusted and preferred choice for dog owners seeking quality daycare and socialization for their pets.

It's what we call competitive advantages—strengthening them helps your business excel.

Here are some examples of competitive advantages for a dog hotel: safe and comfortable pet accommodations, experienced and caring staff, fun activities for dogs.

How to draft a SWOT analysis for a dog hotel?

A SWOT analysis can help identify the strengths, weaknesses, opportunities, and threats of a dog daycare center, allowing the owners to make informed decisions about how to best achieve success.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a dog daycare center

The strengths for a dog daycare center

When we mention the "S" in SWOT, we mean Strengths, which are the project's internal qualities or distinctive features.

For a dog daycare center, potential strengths could include experienced staff, a safe and secure environment, a variety of activities and amenities, and a convenient location.

The weaknesses for a dog daycare center

When we use the "W," we mean Weaknesses, which are the aspects of the project that need further attention.

For a dog daycare center, potential weaknesses could include inadequate staffing, lack of proper training, insufficient space, and inadequate insurance coverage.

The opportunities for a dog daycare center

The "O" in SWOT symbolizes Opportunities, indicating the potential advantages or favorable factors that can support the project.

In the case of a dog daycare center, potential opportunities could include offering boarding services, providing basic grooming services, offering dog training classes, and hosting doggie playdates.

The threats for a dog daycare center

When we talk about the "T" in SWOT, we're referring to Threats, which are the external risks or negative factors that can impact the project's success.

How to develop a marketing plan for a dog hotel?

Including a marketing strategy in your business plan is important to attract customers and generate revenue.

A dog hotel can attract pet owners in need of professional and reliable pet boarding services by implementing a targeted marketing strategy that showcases the hotel's comfortable accommodations, experienced staff, and personalized care for furry guests.

Pet owners won't trust your dog hotel without proper promotion; emphasizing the comfortable accommodations, personalized care, and dedicated staff is crucial.

Have you explored marketing approaches to attract customers to your dog hotel? Consider offering luxury pet accommodations or personalized pet care services, showcasing adorable pet photos on social media, and collaborating with local pet groomers or veterinarians for cross-promotion.

No need to worry if you're short on ideas for your project's marketing strategy.

How to build financial projections for a dog hotel?

A comprehensive business plan requires a thorough analysis of financial data to ensure its success.

As part of your business planning process, you'll be required to predict the revenue for your dog daycare center.

Ensuring a revenue forecast that is relevant and credible is key to presenting a robust business plan to potential banks or investors.

Our financial plan for a dog daycare center is designed to be user-friendly, incorporating automatic verifications that assist in identifying and correcting any assumptions. This ensures you can build credible projections with confidence.

Without a doubt, you'll need to come up with a basic budget for starting your dog daycare center. Make sure to include every expense (by the way, they are all listed in the financial plan we've made).

Including the break-even analysis in your financial plan is important as it shows whether your dog daycare center will generate profits or not.

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The Ultimate Guide to Starting a Successful Dog Daycare Business

Table of contents, your comprehensive guide to launching a doggy daycare.

In this comprehensive guide, we will walk you through the essential steps to successfully launch and operate a dog daycare business. From understanding the licensing requirements to maximizing profits and crafting a solid business plan, we will cover everything you need to know to ensure your doggy daycare venture thrives.

Steps to Successfully Launching a Dog Daycare Business

Launching a dog daycare business is an exciting endeavor, but it's important to start on the right foot. The first step is conducting thorough market research to determine if there is a demand for a dog daycare in your area. Identify your target market and assess the competition to find your niche.

For example, you may discover that there is a growing trend of pet owners who work long hours and are in need of a safe and stimulating environment for their furry friends. By catering to this specific market segment, you can position your dog daycare as a solution to their needs and stand out from the competition.

Next, you'll need to develop a comprehensive business plan that outlines your goals, strategies, and financial projections. This plan will serve as your roadmap and help you secure funding if needed. It should include details on your unique selling proposition, pricing strategies, marketing plan, and operational procedures.

When crafting your business plan, consider incorporating innovative ideas to differentiate your dog daycare from others in the market. For instance, you could offer additional services such as grooming, training, or even a doggy spa to attract a wider customer base and increase revenue streams.

Once your business plan is in place, it's time to take care of the legal aspects. Obtain the necessary licenses and permits and ensure that you comply with local regulations. This may include obtaining liability insurance and meeting health and safety standards.

Navigating the Licensing Requirements for Your Dog Daycare

Before launching your dog daycare, it's crucial to understand the licensing requirements and regulations in your area. Contact your local government or licensing agency to get information on the specific permits and certifications you need to operate legally.

Additionally, it's important to consider the welfare of the dogs in your care. Research and implement best practices for dog handling, behavior management, and emergency procedures. This will not only ensure the safety and well-being of the dogs but also help you build trust and credibility with your customers.

Remember, obtaining the necessary licenses and certifications is not just a legal requirement, but it also demonstrates your commitment to providing a professional and reliable service. It gives pet owners peace of mind knowing that their beloved companions are in capable hands.

Understanding the Profit Potential of a Dog Daycare Venture

While the love for dogs is undoubtedly the driving force behind starting a dog daycare, it's essential to consider the profit potential of your venture. Running a successful dog daycare can be financially rewarding, but it requires careful financial planning and management.

Calculate your costs, including overhead expenses such as rent, utilities, supplies, and employee wages. Consider factors such as the number of dogs you can accommodate, the rates you can charge, and the demand for dog daycare services in your area. This will help you determine your pricing strategy and estimate your potential profits.

Moreover, think about ways to maximize your revenue streams. You could explore partnerships with local pet stores or veterinarians to offer additional services or products. For example, you could provide a retail section within your daycare where customers can purchase premium dog food, toys, and accessories.

Additionally, consider implementing loyalty programs or offering special packages to encourage repeat business. This not only fosters customer loyalty but also helps to increase your overall revenue and profitability.

By carefully analyzing the profit potential of your dog daycare venture and implementing strategic measures to increase revenue, you can ensure the long-term success and sustainability of your business.

Maximizing Profits in Your Dog Daycare Business

Once your dog daycare is up and running, it's important to focus on maximizing profits and ensuring long-term success. Here are some strategies to help you achieve financial success in your dog daycare business:

Expanding your revenue streams can also significantly impact the profitability of your dog daycare business. Consider offering additional services such as grooming, training classes, or pet retail products. These add-ons can attract more customers and increase your overall income.

Furthermore, investing in marketing and advertising efforts can help raise awareness about your dog daycare services and attract new clients. Utilize social media platforms, local advertising, and partnerships with pet-related businesses to reach a wider audience and drive growth.

The Financial Blueprint for a Successful Dog Daycare

Developing a financial blueprint is essential for the success of your dog daycare. This blueprint should include financial goals, budgeting strategies, and profit projections. Regularly monitor your income and expenses, and make adjustments as needed to ensure profitability.

Additionally, consider creating a contingency fund to cover unexpected expenses or downturns in business. Having a financial safety net can provide stability and peace of mind as you navigate the ups and downs of running a dog daycare.

Calculating Gross and Net Profits in Your Dog Daycare

Understanding your gross and net profits is vital in determining the financial health of your dog daycare. Gross profit refers to the revenue generated from dog daycare services, while net profit takes into account all expenses. Use accounting software or consult with a financial professional to accurately calculate and analyze your profits.

Regularly reviewing your financial statements and conducting cost-benefit analyses can help identify areas where you can cut costs or optimize revenue streams. By staying proactive and informed about your financial performance, you can make strategic decisions to improve profitability and sustain long-term success.

Using Pricing Strategies to Build Your Dog Daycare Brand

Pricing is a crucial aspect of your dog daycare business. Set competitive rates based on factors such as your local market, the quality of your services, and the amenities you offer. Consider offering package deals, discounts for long-term clients, or additional services to attract and retain customers.

Furthermore, regularly reassess your pricing strategy to stay competitive in the market and adjust to changing economic conditions. Conduct market research, gather feedback from customers, and stay informed about industry trends to ensure that your pricing remains attractive and profitable.

Crafting a Solid Business Plan for Your Dog Daycare

A well-crafted business plan lays the foundation for success in any business, including a dog daycare. Here are key elements to consider when developing your dog daycare business plan:

Establishing Your Unique Dog Daycare Brand Identity

In a competitive industry, having a unique brand identity is crucial. Define what sets your dog daycare apart from the competition and communicate this to your target audience. This could be through specialized services, a focus on quality and cleanliness, or creating a welcoming and safe environment for the dogs.

For example, you could offer specialized services such as dog training or grooming, providing added value to your customers. By focusing on quality and cleanliness, you can ensure that pet owners feel confident in leaving their beloved furry friends in your care. Creating a welcoming and safe environment can be achieved by implementing strict safety protocols, hiring experienced and compassionate staff, and designing play areas that cater to the needs of different dog breeds and sizes.

Analyzing and Outsmarting Your Dog Daycare Competition

Competition in the dog daycare industry may be fierce, especially in densely populated areas. Conduct a thorough analysis of your competitors, their offerings, and pricing. Identify ways to differentiate your business and offer a superior experience to attract customers.

One way to outsmart your competition is by offering unique perks and services that set you apart. For example, you could provide webcams that allow pet owners to check in on their dogs throughout the day, giving them peace of mind. Another strategy could be to partner with local pet stores or veterinarians to offer exclusive discounts or promotions to your customers, creating added value for their experience.

Selecting the Ideal Facilities for Your Dog Daycare

The facilities you choose for your dog daycare play a significant role in its success. Consider factors such as location, accessibility, indoor and outdoor space, and amenities. Create a safe and comfortable environment that meets the needs of the dogs and their owners.

When selecting the ideal facilities, think about the convenience for pet owners. Choose a location that is easily accessible and has ample parking. Indoor and outdoor space should be spacious and secure, allowing dogs to play and exercise freely. Consider adding amenities such as swimming pools or agility courses to provide additional entertainment for the dogs.

Streamlining Operations with Effective Software Solutions

Efficient operations are essential for a dog daycare business. Utilize software solutions specifically designed for managing dog daycare operations, such as scheduling, client communication, and billing. These tools can help streamline administrative tasks and provide a better experience for both you and your clients.

With the right software, you can automate scheduling, ensuring that each dog receives the appropriate amount of playtime and rest. Client communication can be made easier through automated reminders and updates, keeping pet owners informed about their dog's activities and well-being. Billing software can simplify the payment process, allowing for easy invoicing and tracking of payments.

Starting a successful dog daycare business requires careful planning, thorough research, and a passion for dogs. By following the steps outlined in this guide and implementing effective strategies, you can launch and operate a thriving doggy daycare that provides valuable services to pet owners while allowing you to fulfill your business dreams.

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The Best Dog Kennel Software for Managing Your Pet Boarding Business

The Ultimate Guide to Starting a Dog Daycare Business

For animal lovers, the idea of opening a dog daycare in their community seems like a dream come true.  At first glance you will think only about the best aspects of running your own dog daycare business; adorable dogs playing, running, sniffing, jumping, digging, and tail wagging.  However, it’s important that as you build your business plan for opening your own dog daycare business you dig a little deeper and understand that while it has a ton of benefits to do what you love, it’s also just like starting any other small business and has a ton of challenges and barriers to building a business that is profitable and can be a pillar in your local community.

If you’re among the many new entrepreneurs venturing into the world of dog daycare, you’ve likely invested considerable time and effort into selecting the perfect location, navigating permits, securing financing, and refurbishing your facility to launch your business.

The purpose of this article is to provide a step-by-step guide on how to start a successful dog daycare business.  At  Kennel Connection , we have helped hundreds of dog daycare businesses open their doors with 35+ dogs on day 1.  We have built a dog daycare software platform that is designed to streamline the pet care operations of your facility, deliver amazing customer experiences, and automate marketing and customer communication while driving revenue and profits to make it easier for you to deliver the highest quality of pet care in your area.

The Growing Demand for Dog Daycare Services

Over the last decade, dog daycare businesses have been opening at a rapid pace across both the US and Canada.  As of 2022, there were over 25,000 dog daycare business locations in the United States serving over 65 million households

The average facility will deliver dog daycare services for around 40 dogs per day, but the market is filled with profitable dog daycare businesses that operate in their home for 5-10 dogs per day as well as large-scale facilities that are doing 200+ dogs per day in daycare. As a new dog daycare business owner you need to decide what size business you want to build.

Market Research & Planning for Your Dog Daycare Business

One of the most challenging aspects of opening a dog daycare is finding a location that is zoned correctly, applying for permits, and determining if the market has the appropriate demographics to support a profitable dog daycare business.  You want to look at population size, income levels, registered dog owners, age of residents, education level, and health coverage.  Sites like  https://data.census.gov/  will provide detailed demographic information and when you filter the data by county, you can get some very detailed level indicators to help you determine if the community would support your dream of opening a dog daycare business.  

Key Considerations in Dog Daycare Market Analysis

As you evaluate the market, the one key factor to consider is that the average dog daycare customer will only travel 7 miles to attend your dog daycare business regularly.  So you should be on the lookout for a building that is 5,000 to 10,000 square feet (depending on your access to capital) that also has outdoor space of at least 1,000 square feet.  Location is key in selecting the right area for your business, but finding a location that is zoned properly that is also easy to find can be time-consuming and might prove difficult. 

Estimating Your Dog Daycare Startup Costs

As in all things, the cost of what you buy and build is going to vary greatly on the location you are looking, the square footage of the building, the number of private runs you build, and what type of improvements are going to be needed.  I have met dog daycare business owners who were able to open a 5000 square foot dog daycare business with less than $50,000 and I’ve also met dog daycare owners who have 25,000 square feet and spent $4,000,000.  As you start to dig a bit deeper into your dream of owning and operating a dog daycare facility, below are some of the things that you should consider. 

Runs/Rooms/Kennels

There are several main options in the pet industry for places where your dogs will rest between social play.  Mason Kennels is one of the largest providers of kennels, but I prefer a small company called Gator Kennels out of Texas.  The key to making this investment last is using the right type of cleaning solutions.  But if you are handy or know someone who can help, I have also walked through beautiful facilities that use cement cylinders that are filled and stacked 8 feet high (you want the walls to be high to dampen the noise, provide privacy for each pet, but also because some dogs are amazing escape artists.

You have a lot of options when choosing the flooring type for your dog daycare.  I’ve seen some beautiful facilities use just sealed concrete, I’ve seen others spend tens of thousands on Permatek flooring, and even seen rubber floors.  If budget is not an issue, luxury resorts across the US typically install Permatek flooring because it’s easy to clean, will last a lifetime, and does not get slippery when wet.

One thing that you will find out quickly if you have never worked at a dog daycare is that you are ALWAYS cleaning.  Your staff will be using a variety of tools and a lot of water to keep your dog daycare smelling its best and eliminate diseases and bacteria.  Because of the necessary cleaning protocols, you want to make sure that you have drainage in every run, in main play areas, and that the slope of the flooring is helping you get everything into the drain vs making your life more difficult.

Ventilation System

When you are evaluating air exchanges & proper ventilation in your dog daycare facility design, you want to understand how many air changes happen per hour.  You must balance the need for fresh air with the need for an energy-efficient system. Without proper air circulation, you’ll run into issues with odor, bacteria, and disease transmission.  The most efficient systems will set up different zones (for larger facilities) so you can optimize the efficiency of the system.

Air Purification

The health and safety of the dogs in your care is key because if you have an outbreak of a dog illness, you might have to close your doors for a week or two.  If you are serious about safety, then Pet Areapy has the best UV disinfection tools available in the market. 

Outdoor Turf

Turf is a definite investment that I believe pays for itself.  It looks beautiful when you are doing tours of your facility, it’s fairly low maintenance and it eliminates mud and dirt which makes sending home dogs clean one less thing you have to worry about.  There are a few keys to turf and it all starts with the install.  You need to have a few layers of rock, sand, and soil between the turf to allow for proper drainage.  If you fail to prepare the group for a turf install, you will be plagued with a nasty odor from eliminations, and the turf won’t hold up.  If you want to go 100% turf, the leader in the space is K9 Grass.  The thatching on the bottom of their turf design allows for amazing drainage and you can expect it to last 10-15 years.  If you don’t have the $30,000+ for installing turf, some new products came into the market that allow grass to grow through a barrier that improves the quality of your grass and can also drastically reduce the mud factor. 

Navigating Legal & Regulatory Requirements

The legal and regulatory requirements to open a dog daycare business will vary significantly depending on the city & county you are looking at.

Most locations will require you to register your business, obtain a dog daycare and/or dog boarding license & special use permits based upon the zoning of your location as well as secure business insurance.  I would suggest looking at  The Hartford as they insure a ton of dog daycare businesses that are currently using the Kennel Connection dog daycare software. 

You will need 3 types of insurance coverage to ensure you are covered. 

• Commercial Liability Insurance:  This insurance covers your business if an accident were to occur in the day-to-day operations of your dog daycare. For example, a customer might slip and get injured within your daycare, or a pipe could burst in your facility and damage nearby businesses. 
• Property Insurance:  Property insurance covers your physical daycare facilities and equipment if something like a natural disaster, robbery, or fire occurs. 
• Professional Liability Insurance:  This insurance type relates to any accidents or injuries that directly relate to the activities of your dog daycare. For example, two dogs could get in a fight, or a dog could break free and run away. Your professional liability insurance can protect you and your business from fault in these instances. 

How to Price Your Dog Daycare Services Effectively

The appropriate pricing for your dog daycare is NOT based on what competitors in your area are pricing.  The pricing for your daycare services, packages, and enrichment should be based upon a model of your fixed and variable expenses, the capacity of your playgroups, employee pay, and your dog-to-staff ratios.  The average price across the US for a day of dog daycare is $35/per day.  If you are focused on enrichment daycare, the average rate is closer to $48/per day.  The price per day of daycare will vary by location with it being higher on the coasts and major metro areas and a little lower in rural areas where there is less demand for dog daycare services. The main goal when setting pricing is that your labor expense will be 30% of revenue for every category of service (including manager and owner salaries).  If your expenses are higher, which require higher prices, then you will need to ensure you are marketing your staff training protocols, certifications, the different services you are offering, and your approach to sending a dog home the best version of themselves. 

Variable Expenses

Below are the most common variable expenses you will encounter when operating your dog daycare business. 

• Labor for Services
• Grooming Supplies (scissors, shampoos, clippers, outfits, 
• Pet Assurance Costs
• Gas for Pick-up & Drop-off 

Fixed Expenses

Below is a list of the most common fixed expenses you will encounter when operating your dog daycare business.

• Rent/Mortgage Payments
• Property Taxes
• Utilities (Gas, Electric, Water)
• Cleaning Supplies
• Support Staff
• Facility Manager
• Marketing Expenses

Packages & Memberships

The other consideration when building your daycare program is to design the right types of packages and membership plans.  New dog daycare business owners should try to NOT discount a daycare package; instead, they should include free enrichment services based on how many days they purchase.  By including ‘near zero labor’ enrichment services you are going to help boost the adoption of the enrichment across daycare, boarding, and even grooming services. For every 10 dog daycare days that they purchase in the package, the pet parent should receive 1 free enrichment service.   Below are some of the best-selling ‘near zero labor’ enrichment services. 

• K9 IQ Puzzles
• Snuffle Mats
• Small Group Bacon Bubbles
• Report Cards
• Small Group Sniff Walks
• Bedding Upgrades

Build a Forecast Model

The key to building any profitable business is making sure that you know your numbers inside and out.  You need to be realistic and detailed in understanding your estimates of building costs, fixed and variable expenses, growth in acquiring customers, the required labor costs, and having a plan for the unexpected issues that will arise. For your dog daycare business, you will want to focus on several key metrics. 

Break Even Point

This is how many daycare dogs you need each day to cover all expenses (fixed & variable)

Profit per Pet

This number will fluctuate but should be used as a guide to know when it makes financial sense to cap the number of dogs per day based on the dog-to-staff ratios you have set.

Average Revenue per Pet Day (benchmark is $45)

With a baseline rate of $35/day, you will hit this benchmark by focusing on enrichment services and departure baths. 

Percentage of Daycare with Enrichment Activity (benchmark is 60%)

Enrichment services that are near zero labor will help reduce your overall labor as a percentage of revenue and ultimately drive profitability.  It’s key here that you train staff on how to make these personalized recommendations to send the dog home the best version of themselves.

Daycare Evaluations per Week (benchmark is 10)

You will need a minimum of 5 per week to have any growth based upon customer churn of 20% annually. 

Daycare Conversions (benchmark is 90%)

The ideal conversion is going to purchase a package and the goal is 90%, but if they don’t buy a package the secondary goal is to at least book their next daycare day. 

Labor as a Percentage of Revenue (benchmark is 35%)

While the benchmark is 35%, the smaller the percentage the higher your profits.  I have seen large-scale facilities (200+ dogs per day) have a labor percentage of 25%, but I must warn you that this is extremely difficult.  It’s very helpful to have clients pre-book so you know how many dogs to expect each day and as you might guess, these facilities are not operating at a 10 to 1 dog-to-staff ratio. 

Average Dogs Per Day (no benchmark on this; it will depend on square footage & labor)

Every dog daycare will have a typical ‘slow day’ that is consistently on the same day of the week.  The goal for you as a business owner is to create an Enrichment Calendar that will incentivize dog owners to come to daycare on these days to make them less slow.  Any time a customer purchases enrichment, be sure to send them a report card to include the pet parent in the experience. 

Active Daycare Clients

This number should be calculated monthly and is reflective of how many dogs came in at least 1 time in the past 30 days.  As you think about growth for your business, the goal is to get each level of client to come in 1x more week/month than they did the previous month.  These small gains will add up to a large growth month over month. 

At-Risk Daycare Dogs

The at-risk daycare dogs should be looked at every two weeks and it’s ideal if you build in a communication plan to re-engage customers who have not used daycare within the past two weeks.  This is where it’s helpful to use dog daycare software, as you can automate this process of reporting and create automated email triggers to reach out to those customers.  The other way to ensure you reduce the “at-risk” clients is by creating a monthly free enrichment schedule.  This will incentivize clients to come in and enjoy a day of fun. 

Daycare Package Sales

Daycare packages are a great tool to reward clients who come in often, but it’s also a way to ensure you are building up cash flow.  I typically recommend that you do not discount the daily rate for a package, but instead offer a free enrichment service for every 10 days a client purchases. I would also recommend that all packages have a 30 to 60-day expiration date to encourage clients to come in multiple times per month. 

Hiring the Right Staff for Your Dog Daycare Business

One of the biggest challenges in the dog daycare industry is finding staff that is responsible, dependable, and loves doing the hard work needed to operate a successful dog daycare.  Playing with dogs all day seems like a dream to any pet lover, however, you must set expectations from the first conversation with potential staff members that only a fraction of their time is playing with dogs.  You will want to prepare new staff members for the cleaning requirements, picking up dog poop, and documenting everything from feedings to medications to incidents and injuries.  Dog daycare staff can’t only be ‘dog people’, they need to have good communication skills, be team players, be hard workers, be dependable, and be flexible. To ensure that you only hire the best, you will want to do a mix of phone screenings, in-person interviews, and paid trial days.  Once you are both sure that they are a good fit for the position, you will want to create a training program so that every staff member understands dog body language, how to break up a scuffle, how to deal with difficult clients, and complete their daily responsibilities.  Several companies have designed dog daycare staff training, but I always recommend  PackPro .  They are owners/operators of a large-scale facility that does over 200 dogs per day; they have cultivated a company culture that staff love being a part of, they are profitable and have created the right processes and policies to ensure daycare is both safe and fun for staff and the dogs. 

The other key to being successful as a dog daycare business is making sure that you include your staff in your vision for the business.  This type of company culture allows your team to take responsibility (and action when appropriate) to ensure you are always delivering the highest levels of customer service.  As a leader of your business, you need to understand what motivates staff, how they want to be praised, preferred rewards, and what their aspirations are.  When you invest in the people they will build your business. Below is a sample staff survey I ask all staff to fill out.

https://pawloyalty.formstack.com/forms/staff_survey

How to Create a Dog Daycare Business Website

Selecting the best website platform for your dog daycare business.

If you are not super technical and you don’t want your website to be an ongoing expense for updating content, uploading pictures, and other maintenance to keep it fresh; then I would recommend using one of the WYSIWYG (what you see is what you get) sites like  Wix  or  Weebly . These tools will allow you to register your domain name, host your website, and provide templates that are pre-configured for a dog daycare business and will cost less than $250 per year. If you are ok with spending a bit more to build a site that is going to be more robust and customizable, then I would recommend using  WordPress . 

Key Elements of a Successful Dog Daycare Website

The modern pet parent is looking for a safe and fun environment for their dogs to socialize, play, jump, chase, and sniff around. They will start their quest for the perfect dog daycare for their furry family member by using Google to find “dog daycare businesses in their town” (typically within 7 miles of their home).  Be sure that your website provides the following items. 

• Clearly state what services you offer.
• Includes a video that shows pet parents what a “day in the life” of a dog is at your daycare facility.
• Includes social proof that the community loves you (using reviews and video testimonials).
• Includes a clear CTA (call to action) for pet parents to schedule their dog daycare evaluation (this should be powered by the dog daycare software solution that you choose to integrate into your website).
• Provides a way for them to ask questions via live chat or a text number (be sure to respond to these as quickly as possible).

SEO Strategies for Dog Daycare Websites

While it’s easy to get a website built using pre-built templates, you need to be sure to optimize the site so that people who are looking for dog daycare services in your area are going to find you in the top 10 results of their Google search. Even as you read through this article, you will notice that I use keywords multiple times so that Google will recognize that my site contains information for people who are searching for specific keywords. (can you guess the 2 keywords that I’m trying to optimize for?)

For a dog daycare business, you want to consider the words that a pet parent would type into Google to find your business.  Once you have identified a few keywords/phrases that you want to rank high for search results, you will then want to start adding content to your website that contains those keywords.  In addition to the content, you will want to update URLs, make sure headers on the page have those keywords, and that your website is mobile-friendly and easily readable.  The one thing I can’t stress enough is that SEO (search engine optimization) is a long-game task.  It requires you to consistently publish content and refresh your website to stay at the top page of Google search results. 

Another way to build authority for your website is to make sure that you register your business listing on all of the free listing sites.  The basics are Google listing, Bing listing, and Yelp, but if you dig a bit deeper you will find that there are over 50 different websites that are appropriate for your dog daycare business to be listed.

Choosing the Best Dog Daycare Software for Your Business

In the pet care industry, the dog daycare software you choose will help run your entire business and will cost anywhere from $100 to $300 per month.  65% of the leading dog daycare software solutions are very similar, so as you evaluate which software is going to be the best fit for your dog daycare business, you will want to dig into what is different.  Dog daycare business owners should look for a software solution that is going to provide the following baseline functionality, however, the key differences in most of the leading solutions are around online reservation requests, customer support, financial reporting, and client marketing.  These core areas of dog daycare software can save you hundreds of labor hours, improve your customer experience, and streamline daily pet care operations allowing your team to deliver the highest quality of care and safety. 

CRM: Customer & Pet Profile Management

This should manage all their contact information, appointment history, notes on each dog, history of texts they’ve received, dog daycare package usage and balance, vaccination, feedings, and medications.

Schedule Management

Regardless of the size of your dog daycare business, you will want to make sure that you know who is in-house, who is arriving, and who is leaving.  You will need to choose your dog-to-staff ratio, create playgroups with dogs who play well together, rotate the dogs who have chosen to personalize their pet’s stay with enrichment activities, and deliver feedings (for some not all) and medications.

POS Payment Integration

Your dog daycare software should provide a way to take payments (cash, check, Venmo, credit cards, debit cards, gift cards, etc).  These payments will integrate directly into the software so you can store credit cards on file, prompt pet parents to tip your staff, take deposits for appointment requests made through your website, and purchase dog daycare packages through your website.  The Kennel Connection dog daycare software solution also includes the ability to “Text to Pay” by sending a link directly to their cell phone.

Financial, Operational & Performance Reporting

As the owner of a dog daycare business, you need to know your numbers inside and out.  There are key performance indicators that you should be looking at weekly to understand the growth of your dog daycare, to understand the profitability, and to uncover the opportunities.  When you are evaluating which dog daycare software is the best fit for your business, be sure to do a deep dive and make sure you can easily get the numbers you need.  If you want to understand what metrics matter most check out this other article on metrics that matter for pet care businesses.

Online Reservation Request Integration

Pet parents doing research into a new dog daycare business should have the ability to take action and book a dog daycare evaluation.  When you use the best dog daycare software you can configure the pet parent customer experience so that they can select their enrichment activities, upload copies of their dog’s vaccinations, digitally sign your liability waivers, and pay a deposit. 

Marketing Automation

After you have worked in the industry as long as I have, you realize that most pet parents have no idea about what happens after they drop off their dog for daycare.  They have no idea how much cleaning occurs, the rotation schedules for the dogs, and the million moving parts to ensure that you foster safe playgroups for both staff and the furry guests they are caring for.  The right dog daycare software solution will have integrated marketing tools that allow you to easily communicate with pet parents through email and text.  They will support your ability to send marketing text messages to improve your average revenue per pet through departure baths and dog daycare enrichment activities and they will drive 5-star reviews with automated check-out texts. 

Employee Management

The right dog daycare software will allow you to customize the access rights for employees to view financial reports, respond to clients via two-way text messaging, update client and pet profiles, and update/manage invoices and payments.  There should also be a built-in time clock for tracking pay for hourly employees and managing commissions for dog groomers and dog trainers. When you leverage a cloud-based dog daycare software you can also restrict employees to only access information within the software when they are onsite at your dog daycare facility and logged into your network. 

Preparing for Your Dog Daycare Business Launch

Before you open the doors to your dog daycare business, you will want to make sure that you have designed an amazing customer and staff experience.  To be successful, you will want to define policies and processes, set standards for how the phone is answered, empower staff to do the “right thing” when something doesn’t go right, and find a pricing & services model that is profitable and differentiates you from the other dog daycare businesses in your area. 

Policies & Processes for a Dog Daycare Business

When a pet care business designs the right processes & policies you can reduce the stress for staff, improve profitability, and ensure you are creating a safe and fun environment for both staff and pets. 

Dog Daycare Rules:

To ensure that you focus on safety first, you will want to decide on the rules for accepting a dog into your dog daycare playgroups.  The most common rules for your dog daycare are age restrictions, vaccination requirements, and having the appropriate dog daycare evaluation process.  The key to remember is that it is “ok” to let a client know that the dog is not a good fit for socialization and offer an alternative solution like a day board when the dog won’t thrive in a social environment. 

Daycare Evaluation Screening & Check-out Experience:

The average dog daycare will lose about 20% of their customers on an annual basis due to behavior changes, customers moving, changes in financial situations, and the unfortunate death of a dog.  To ensure your dog daycare sees the appropriate growth, you need to focus on targeted marketing campaigns to drive a minimum of 25 dog daycare evaluations per month.  The goal of every dog daycare evaluation is to end with a package purchase.  Each business should design an automated email campaign that explains the evaluation process, what makes an ideal daycare candidate, and a special “intro to daycare” package offer at the end of the evaluation.  I believe the ideal package will include 6 days of daycare for the price of 3 with the expectation of the dog coming into daycare 2x per week for the next 3 weeks. 

Check-in Experience:

As a pet parent walks through the front doors of your dog daycare, the ‘look’ of your front desk staff is going to be their first impression.  Having your staff look like they work for a safe and professional dog daycare is key to your brand.  At the bare minimum, every single employee should wear a company shirt (both front desk and daycare attendants).  But the check-in experience is so much more than just a company uniform; it also includes front desk staff coming out from behind the desk to greet the dog and point out the special enrichment activity for the day (ideally written on a chalkboard). 

Drop-off & Pick-up Policies:

 If you are opening your doors with limited staff, then a key to reducing labor and improving profitability is to limit the times clients can pick up and drop off for dog boarding and dog daycare services.  You want to ensure you are somewhat flexible, however, typically I would recommend a drop-off window of 7 am to 10 am and a pick-up window of 3 pm to 7 pm.  This allows you to reallocate front-desk staff hours to cleaning, go-home prep, and other key operational tasks. The other benefit is that your staff can better manage the level of energy of the dogs who are playing to ensure you don’t introduce an overstimulated dog with dogs who have already been playing for a few hours and are ready to be rotated for rest and enrichment. 

Dog to Staff Ratio:

The dog-to-staff ratio can vary greatly from region to region.  In some states like Colorado and North Carolina, these ratios are regulated and can be 10:1 or 12:1, while other states like Texas are allowed to operate 25:1 or higher based on personal preference.  The main factor in determining your personal approach to dog-to-staff ratio should be safety and that will depend upon the training and background of your daycare attendants.  When you operate at a higher dog-to-staff ratio you are reducing your labor as a percentage of revenue (with a target of 30%), but it is a careful balance because safety should be your number one priority. 

Departure Bath Requirements:

As you evaluate your policy around departure baths, each pet care business should consider the potential negative impacts to your brand should you send a dog home after multiple days of playing, covered in their best friend’s slobber and not smelling fresh.  The ideal schedule would be that every regular dog daycare customer would get a bath every two weeks and any dogs that are staying for 3 nights of boarding or more would depart with a bath as well.  Not only does this protect your brand, but it will also improve your average revenue per pet day/night.  The benchmark for success is that 90% of boarding appointments should have a departure bath and 50% of regular daycare clients would be on a regular bath schedule.  To optimize this process your staff should recommend a departure bath at the time of booking, 7 days before check-in as well as at the time of check-in.  In certain cases, it’s also important to give your team authority to provide a free departure bath for dogs who really need it (but be sure to let the customer know and build “goodwill”). 

Deposit and Cancellation Policy:

When you are accepting online reservation requests through your dog daycare software platform, collecting deposits is simple and automated.  Most dog daycare businesses do not require a deposit for daycare services, but it is very common to collect a deposit for dog boarding and pet grooming services.  Deposits can range from $50 per appointment to 50% of the estimated cost.  When you are evaluating the right cancellation policy, I think it should be based on how long you expect it to take to find a replacement for the cancellation.  If you have enough demand to fill a last-minute cancellation within 3 days, then deposits canceled 4 days or more in advance will be refunded.  

Dog Daycare Rotation Schedule: 

The ideal schedule for a dog will include a mix of socialization, mental stimulation, food enrichment, sensory enrichment, and rest.  The rotation schedule you design will allow your staff to deliver enrichment services that will ensure you are sending every dog home the best version of themselves and provide a more enjoyable structured experience for your staff.  I see some of the top-performing facilities using 2-hour rotation schedules. 

Dog Daycare Cleaning Protocols:

As customers enter your facility, you want them to be delighted with the scent of your brand (and that scent should not be “stinky dog”).  Having the correct cleaning protocol for all different service types is going to be a key to brand reputation, as well as the wellness of all the furry guests. While I wish that I could share the ideal cleaning protocols for,  Permatek floors ,  k9 grass ,  puppy playground  equipment,  Gator kennels ,  Kuranda beds , and the dozens of other optional surfaces, that is one aspect of operating a dog daycare that I do not have expertise in.   But what I can tell you is that the experts over at  Animal Health Technologies  have created hospital-level cleaning protocols for every surface that are not only for the health of the dogs but also to ensure your equipment will last for decades. 

Phone Call Scripts:

Creating a phone script for the different types of calls that come into your dog daycare business is key to optimizing the adoption of enrichment services, converting new customers into loyal customers, selling daycare packages, and differentiating your business from the competitors in your area.  Below are the key phone calls that you need to a call script/guide.  

• New Customer Calls: These calls need to be focused on a mix of telling your company story and capturing the necessary information to nurture these leads into loyal customers. 
• Reservation Calls: The goal of these calls is to educate customers on the value of enrichment services and how those services will ensure you can send their dog home the best version of themselves. 
• Pet Parents Check-in Calls: When you use a dog daycare software that includes digital charting, it will streamline communication between daycare attendants and the front desk staff.  This allows you to skip transferring a call and or using your walkie-talkie to get a pet update.  Instead, the digital charting makes all the details available so that, in real-time, you can share a happy update with the pet parents. 

Pet Assurance:

Pet business owners can think of pet assurance as a product that guarantees the pet parents that you will do the right thing, should an injury happen during their time at your facility.  I’ve seen “pet assurance” implemented as a daily rate of $1-3/per day, while other facilities charge $5 per appointment for the assurance.  What I like about “pet assurance” is that it can be used as a marketing tool in conjunction with touting the training process of your pet care team. When implemented along with appropriate safety protocols, pet assurance will become a profit center for your dog daycare business. 

Dog Daycare Supplies & Equipment

The supplies you purchase are going to vary based on the services that you are offering and the budget you have to spend.  The saying ‘you get what you pay for’ is also true for equipment and supplies in the industry.  

Equipment purchases that require a significant investment are Gator Kennels, puppy playground equipment,  iDog Cameras ,  Pet Aerapy UV Disinfection System , cleaning equipment,  washers, and dryers  (make sure you get commercial grade equipment like speed queens), as well as grooming dryers and adjustable tables.  These products should last a decade or longer and require intentional maintenance and care. 

The less expensive supplies to run your dog daycare business are going to be toys & balls, food &  water bowls  (I really like KINN products), leashes, agility equipment, flirt poles, pooper scoopers, and bags, first aid kits, laundry supplies, kitchen supplies and the right cleaning supplies based upon the surfaces and equipment you are needing to keep clean. 

Grand Opening Marketing Plan

Most dog daycare owners are investing significantly in the building of their dream facility, however many are skipping the critical point of creating a solid grand opening marketing plan to ensure their dog daycare business opens its doors with 35+ dogs on day one.  As you build your plan, you will want to ensure it incorporates a mixture of digital marketing, flyers left on cars, media coverage, mailers, partnering with local businesses, and social media.  The best marketers will start promoting their business anywhere from 90 to 120 days before their scheduled opening. 

Digital Marketing

When you think of digital marketing for your dog daycare business, you should be thinking of Google ads with very specific keywords that your ideal customers are looking for; “Dog Daycare in _____ (your town)”.  These are highly specific search terms the dog owners who are actively searching for care for their four-legged family members. You can expect that each lead that is generated is going to cost around $10.  When you are paying for paid keywords, your ad will show up in the top 4 ‘sponsored’ results for those keywords.   The key to optimizing your conversions of these leads is to have a website that allows dog owners to book a daycare evaluation (I like to call them “discovery day”) or make sure that you answer your business line EVERY time it rings.  If you start marketing your grand opening 120 days before opening, I would start with a budget of $500/month for the first 2 months and then $1000 a month for the last two.  With these leads, the goal is to make sure that 90% of the discovery days turn into a purchase of your “Grand Opening Special Package”.  

Flyers on Cars

The average daycare client will travel no more than 7 miles from their home to your new dog daycare business.  You will want to put on your shoes (or hire someone) and make sure that you are delivering these to all cars that are near your business.  The key to a successful flyer is including a QR code on the flyer to make it easy for dog owners to take action and book their ‘discovery day’.  I personally use  Canva  to design beautiful flyers because they have tons of templates and images that can perfectly match your brand with a QR code that links directly to your dog daycare software online booking page. 

There are likely thousands of homes within 7 miles of your business, which could be very costly if you do not refine the delivery list.  The key to mailers is finding the registered dog owners in your area which is available through public records.  I would recommend using the same flyers you designed using  Canva . 

Media Coverage

Media coverage is designed to boost brand exposure and foot traffic to your neighborhood business.  Local TV is surprisingly watched by 75% of adults and finding the right way to get free coverage will be key to a successful launch of your dog daycare business.  Depending on the date you are anticipating opening the business, you will want to craft your pitch to maximize the chances of being featured. Below are the 4 steps necessary to maximize the coverage. 

• Tune into the program you want to be featured on. One of the biggest mistakes in finding the right media coverage is pitching your grand opening to the wrong producer.  The average segment will last about 3 minutes and will be on-location and can either be a demo or an interview.  
• Keep in mind that media is a visual medium so you want to have a planned activity in the background during your interview that catches the viewer’s attention. 
• Subject Line
• Introduce your idea
• Share your credentials
• Describe the visuals
• Call to action
• Provide your follow-up contact information

Partnering with Local Businesses

There are two types of local business partnerships that you are going to want to explore.  The most obvious is going to be businesses that are also focused on providing products and services that are complimentary to your dog daycare business (vets, pet retailers, dog trainers, groomers, etc).  Go into these businesses and introduce yourself, ask if you can leave behind your flyers, and ideally come up with a way to incentivize the cashiers to include a flyer in every bag or receipt they provide.  

The less obvious option for partnerships is finding large local employers and building an “employee perks” program.  You will want to reach out to the Human Resources contact (you can find their name on  LinkedIn ). The ideal solution will not require you to pay for anything but rather offer a special package for their staff to use your services.  Ideally, they would send out a company-wide email 1x per quarter and include either a flyer or welcome packet for all new hires.  

Social Media Marketing

Once your website is up and running, you will want to immediately create a Facebook & Instagram page for your business. Most dog daycare business owners will post cute pictures, announce special activities, and share other educational information for dog owners.  If you connect both accounts, you can have a single post that is automatically shared on both platforms.  Initially, you should post here frequently to build the expectation and drive traffic to your page; I’d recommend daily if not multiple times per day once you are open and have tons of cute pictures to share. 

Other than Facebook and Instagram, I recommend getting on  Nextdoor  as that has grown into a great local community platform.  I don’t think the paid ads work, however posting on Nextdoor a few times per week to boost the community awareness of your new facility will help drive traffic to your website.  If you can get your customers to also comment on your posts about their experience and how much fun their dog has, that will be great social proof for community members to trust your business with their four-legged family members. 

Find Mentors & Subject Matter Experts

Building a business doing what you love is going to require long hours, working holidays, and having hard conversations.  However, with the right plan, the rewards of doing what you love will outweigh all the hard work.  As you embark on the journey as an entrepreneur, you should find several mentors and subject matter experts who can help you along the way.  I have always found it very helpful to also have an ‘accountability partner’; this is someone who you meet with each month to review your numbers and to share your action plan to continue to improve all aspects of your business.  

If you don’t know where to start looking for the right people to help you along the way; in the dog daycare world, Facebook groups can provide both a community and expertise.  The  Dog Daycare & Boarding Best Practices  group, comprising over 6,000 dog daycare experts, is highly engaged.  Members can address a wide array of inquiries and offer extensive insights spanning marketing, financial analysis, pet care operations, safe conflict resolution techniques, and meticulous cleaning protocols. 

• Cheap and Budget Friendly Recipes
• Health Related Illness Diets
• Homemade Treat Recipes
• Homemade Dog Treats for Health Issues
• Seasonal Recipes
• Can Dogs Eat…
• Dog Diseases & Conditions
• Dog Symptoms
• Dog Grooming
• Caring For Seniors
• Dog Loss & Grieving
• Dog Reproductive Health
• Treatments and Home Remedies
• Dry Dog Food
• Wet Dog Food
• Best Dog Products
• Dog Accessories
• Dog Health Products
• CBD for Dogs
• Toy Dog Breeds
• Working Dog Breeds
• Terrier Dog Breeds
• Sporting Dog Breeds
• Non-Sporting Dog Breeds
• Mixed Breeds
• Hound Dog Breeds
• Livestock and Herding Dog Breeds

How to Write a Dog Daycare Business Plan

Starting your own business takes a lot of time and effort, and one of your first assignments will be to write a business plan . This is true for any business, from the most simple and small entrepreneurial ventures with dogs to the most elaborate, complex pet empires you dream of building. In this column we look specifically at how to write a dog daycare business plan  and all the information that should be included in it.

If this is your first visit, take a quick look at our last week's column on how to start a dog daycare business , where we talked more extensively about actually planning and launching this venture. Today's article will be focused specifically on how to write a dog daycare business plan and I'll try to be more specific.

There are many families that are not around during the day to take care of their dog's needs including feeding, playing, walking and relieving themselves. This is a void that can definitely be filled by an ambitious person who loves dogs and is interested in starting a doggy daycare.

Don't get too excited about your dog business plans just yet. There is a lot more that goes into a pet business than simple love of dogs and a desire in becoming an entrepreneur (petpreneur?) As a business owner you will wear many hats. Some of the duties that you'll be responsible for include:

• Communicating with customers
• Administrative work
• Financial documentation and taxes
• Advertising and marketing
• Website maintenance

…and many more. Especially in the beginning, business owners tend to do mostly everything by themselves to save on expenses. You may be working long hours, nights, and weekends. You'll have a lot on your plate as a business owner, but eventually you'll get a handle on everything and it will start to get easier.

If you’re just beginning to think about launching a dog daycare business and you’d like more information, you can also check out our older general post on  How to Start a Pet Business with Dogs . You’ll find lots of generic information about what to expect when starting your own venture and what you can do to ensure it is a success.

Like all businesses, if you want to undertake something like this then you should start with a well thought out business plan. A proper plan establishes the initial and long term goals of the operation and helps you focus on the core aspects of the canine daycare during the planning phase. The more you put into planning, the less surprises you'll have along the way. So let's talk about how to write a dog daycare business plan, and how to do this properly.

Your business plan is a crucial piece of securing the financing that you'll need to start your own dog daycare . It is the first thing that investors and banks look at. They want to see your plan on how you're going to get their money back with profit. They want to be able to understand what you're business will be like, how you'll get it started, what you're going to accomplish and how you will make it successful.

Even if you're able to fund your own dog daycare business yourself and do not plan on looking for investors, you should still  write a dog daycare business plan. Why? Because:

• It will help you set goals for yourself and your business
• It will help you to stay on the right track and remind you where you're going
• It will help to calculate all the costs that you'll endure throughout this journey
• It will paint a better picture of when and how you're going to start making profit

A business plan is certainly never set in stone and you can alter it as you go if necessary (most likely, you will) but it will outline the things that you want achieve and how you plan to do that.

Assess the need for a NEW dog daycare business

Before any new doggy daycare can be started, you must first make sure there is a need for that business in the area you want to establish it in. You need to have enough prospective customers to help feed the business . This can be done very easily.

Are there plenty of dogs in your area? Is there already an established dog daycare? Think about the owners. Do you live in a suburban area where there are many stay-at-home parents who are home for large parts of the day, or do you live in a place where most folks leave for work in the morning and don't return until dinner time?

RELATED: 10 Great Dog Business Ideas for Petreneurs

Dog daycare may be a service that people are willing to travel a small way for, but it probably wouldn't be worth it for someone to drive more than 15 or 20 minutes to get to your business. Focus on your local area. Be sure that there are plenty of dogs in your town, or neighboring towns that would require your services.

You could chat with friends and family in the area, but you may also want to survey dog owners at your local park, pet store, or grooming facility. Chatting with dog owners is the best way to find out if your services are needed and if pet parents would pay you for it.

Start with using your own logic first and the most simple opportunities for quick research. Write down all your thoughts and the results from whatever research you do by yourself. This will get you started before you devote more time to hard data, statistics and proper market research, which is going to be a crucial part of knowing how to write a dog daycare business plan properly.

State your initial and long term dog daycare business boals

The first and most important part of any business plan is stating the initial and long term goals of the business; it’s no different when establishing a doggy daycare. As I stated before, a carefully done plan will let you focus on the specifics of the undertaking startup and also help you plan for the future .

Here is an example as it relates to a doggy daycare business: I will start a doggy daycare that is initially done out of my home which has the capability to take care of 4 – 6 dogs comfortably during the day. Eventually when the business grows, it will be relocated to some rental space at my brother’s property to expand it to accommodate up to 20 – 25 dogs. Once you grow out of that space, you'll be able to afford something bigger and fancier. All of this should already be pre-planned; never go into this business war unprepared and thinking that “whatever happens, happens.”

Somewhere around this section you also need to include whether or not you will have a business partner(s) and what type of entity your business will be. Will it be a sole proprietorship, a single member LLC, or an S-Corp?

RELATED: How to Start a Dog Grooming Business

Most of the time, small businesses start out as a sole proprietorship for the first year or two. Then once you have all the paperwork, bills, and tax requirements under control you can start looking into filing for an LLC to separate your personal assets from your business.

If you have decided to start your pet business with a partner, you need to decide now if you will run it as a limited liability company (LLC), a corporation, or a partnership. You need to discuss all of this with your business partner and be sure to make all major business decisions together. This information has to be included within your doggy daycare business plan so your investors or the bank (and even yourself) will know how you and your partner plan to work together.

Make this section short and to the point. It's just a general overview of where you see your business in the first year and where you see it going in the future . Anyone reading your pet business plan is simply looking for the basics in this first section. The details will come later.

Who is your target clientele?

No dog related business will survive without customers and it is wise to market your business to your target clientele.

Your customers will likely be dog owners who are not home during the day to tend to their pet's needs. But what about seniors who have a hard time keeping up with energetic dogs? They may be interested in putting their pet in daycare a few days a week for some socialization and play time.

Think outside the box. There are many people that would like to use a dog daycare service, and you want to make sure your business appeals to all of them. This part of the plan should look something like this for the small doggie care mentioned above: The canine daycare will initially start to focus on potential customers that are in housing developments and apartment complexes which are within ½ mile of my home.

Scope of your dog daycare business

Planning for the scope of your business is one of the most essential things to keep in mind when learning how to write a dog daycare business plan. The first step is to decide where your place will be located. Will you run it out of your home or rent a commercial space?

Once you figure out how much space you'll need and/or have, you can decide how many dogs you're willing to take at one time. Maybe you only have the space for 4-6 dogs, or maybe you're renting a large commercial space with the ability to take 20 or more dogs each day. Just remember that the more dogs you watch, the more employees you'll need to care for them.

RELATED: How to Prepare Your Dog for Summer

This is also the place where you'll list the services that you're going to offer. Many dog daycare businesses offer bordering services, training programs, or grooming services to their customers as well. Is this something you're interested in? Will you provide these services yourself or partner with a professional trainer or dog groomer?

It's important to offer multiple services to broaden your customer base, but you don't want to offer too many. Make sure that you excel at the services that you provide, and if that means that you can only offer daycare and boarding in the beginning, that's fine. If you offer too many pet services, you may spread yourself too thin.

Keep in mind that the larger the scope of your dog business is, the more money it will cost to run it. Employee salaries and additional supplies add up quickly, and most commercial building's rent rates are based on the size of the space. Make sure to weight the additional costs against the extra money that a larger business will bring in.

How to finance your doggy daycare business

By the time you get to this part of the plan you will have a good idea what type of finances it will take to get your doggy daycare started. A general rule to follow here is to make sure you have enough financing in place to run the business without any revenue for 6 months. It may not take you that long to turn a profit, but in this case it is better to be safe than sorry. In terms of your own salary, this number varies greatly. A lot of future big business owners count for 3 years of no salary for themselves during the planning phase.

A majority of small businesses fail because they are underfunded during the startup phase. Surely you don't want to fall under this statistic.

None of your financial figures need to be set in stone, but you will need to have a good idea about what all your expenses will be. Remember, the more you plan for, the less surprises you'll have. You'll need to plan for large expenses like rent, utilities, equipment that you'll need to care for the dogs, and fencing. Once you have the final number, add an additional 20% on top of it for unexpected expenses.

Don't forget the expenses that aren't quite so obvious, like:

• Office equipment
• Furniture for you and your customers
• Any renovation costs you may incur
• Advertising and marketing expenses (including website design)

When figuring out how to write a dog daycare business plan, it is best to over-estimate your plan for potential expenses. You don’t want to underestimate and then have your business fail quickly because it was underfunded, or start desperately looking for extra funding. Do your research and be as accurate as possible, but make sure to leave yourself a little bit of wiggle room in terms of money. There are bound to be expenses that you didn’t plan for when starting your dog daycare business.

Advertising and marketing your doggy daycare business

Once you've selected the services that you'll offer and you have an estimate on the dog supplies, office supplies, utilities and other things that you'll be paying for, it's time to set your prices and begin advertising and marketing your new venture. You need to take this part very seriously, because better marketing and more ads mean more customers.

First things first, set the right pricing . You'll need to stay competitive with other dog daycare centers in your area. Call around to some other facilities and find out their rates. Your rates should be slightly less than theirs because you have no experience. Once you begin to build a reputation you can increase your prices.

Now onto advertising. It isn't just about television commercials, radio announcements and billboards. All those things are fine, if you can afford them. However, since most small businesses are working with a small budget, there are lots of ways to advertise that are cheaper than all of that.

Today's new advertising is marketing. Internet is the perfect platform for that: you can reach a huge customer base with very little investment (but a lot of time and hard work).

Getting creative can save you a lot of money when it comes to advertising and marketing. Once you've tried everything you could online – social media, your own website, reaching out to other sites, email marketing and so on – you can move onto the old-school methods which still work very effectively. My advice for the cheapest approach would be to print some fun doggy daycare related flyers and eye catching business cards and place them around your local area strategically. You can hang flyers in senior centers, coffee shops, grooming facilities , veterinarian offices and other places that dog owners who may need dog daycare will frequent.

You could also hand out flyers or business cards at your local dog park. If you are willing to put in some extra time you won't need to spend as much money. Thinking about your target market and the places that they will be mostly likely to see your advertisements will get you a lot farther than a generic television ad that will be viewed by hundreds of people that don't even own a dog.

Still, never forget the importance of a well made website and social media when advertising. In today's world most people look for services, whether for themselves or for their dogs, online. Establishing a website and advertising it through social media is a very inexpensive way to reach a large audience. Yet I still see so many dog businesses avoiding the online world, either with no websites and social media presence, or being very passive with their voice and having terrible and/or broken websites.

Internet is a holygrail of cheap marketing opportunities, so use it!

Legal responsibilities and management

Small doggy daycare business owners usually will run all the aspects of the business themselves. Larger pet daycares will most likely have employees and some type of management structure. Once you get to this part of the business plan you must state how many managers, employees, office personnel will be part of the day to day operations of the business. If you start with just yourself, that's fine too, but try to think a few steads ahead. Scaling should always be on your mind.

To go along with this you'll also need to include how you will care for all the legal responsibilities that a dog daycare owner has. This is the most important section of your business plan . Improper planning could result in major legal consequences for you, your employees and your clients.

Your legal responsibilities will vary depending on the region where you live in. Different states and cities have their own regulations that you'll need to follow.

Be sure that your doggy daycare business plan addresses the following points:

• Your licensing and certification responsibilities
• Liability waivers for your clients
• Pet business insurance
• Any specific laws in your region
• Client contracts
• Employee contracts

I cannot stress enough how important it is to properly plan for your dog business. Learning how to write a dog daycare business plan is only the first step. Now you need to do your research and create the most inclusive plan possible. Again, the better you plan now, the less surprises you'll have when actually launching your fresh pet venture.

References and further reading:

• Permitting for pet and animal-related businesses
• Guide to researching the doggie day care market
• Plan Example #1 (PDF)
• Plan Example #2  (PDF)
• Plan Example #3 (PDF)
• Woof Over Head Doggie Daycare and boarding
• What Is the Cost to Start a Dog Daycare Business?
• High-end doggy day care: No downsizing for Fido
• Become a Dog Daycare Owner

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Dog Daycare Business Plan

Hey there, aspiring pet daycare entrepreneurs! Are you ready to dive into the world of pooch-loving, tail-wagging opportunities? Well, you’re in luck because the pet daycare industry is booming like never before. In fact, the US pet-sitting market exceeded $1.2 billion for the first time in 2021! With pet owners increasingly seeking reliable daycare options, this is the perfect time to start your own pet daycare business. 

In this article, we’ll walk you through the essential steps of creating a winning business plan to secure capital for your pet daycare business. So, grab a cup of coffee, get cozy, and let’s get started!

Why Your Pet Daycare Needs a Business Plan

Before we jump into the nitty-gritty of creating a business plan, let’s address a common misconception: “Do I really need a business plan for my pet daycare?” The short answer? Absolutely, yes! 

A well-crafted business plan serves as your roadmap to success. It not only shows potential investors that you mean business, but it also helps you navigate the challenges and opportunities that lie ahead. By outlining your goals, target market, financial projections, and marketing strategies, you gain clarity and direction for your pet daycare business. So, let’s dive into creating a winning business plan for your pet daycare.

Understanding the Pet Daycare Industry

The pet daycare industry is not just about adorable furry friends. It’s also a rapidly growing market with tremendous potential. In recent years, the pet industry has seen an incredible rise, and pet owners are increasingly considering daycare options for their four-legged companions. In fact, a report by Grand View Research predicts that the global pet daycare market will reach $8.9 billion by 2025. This surge in demand can be attributed to various factors, including busy lifestyles, an increase in pet ownership, and the desire for high-quality care for pets. 

By understanding market trends and the needs of pet owners, you can position your pet daycare business for success. Conducting thorough market research will help you identify your target market, understand customer preferences, and tailor your services to meet their needs. By staying on top of industry trends and offering exceptional care, you’ll be a step ahead in the competitive pet daycare market.

Defining Your Unique Selling Proposition (USP)

In a sea of pet daycare businesses, how do you stand out? That’s where your Unique Selling Proposition (USP) comes in. Your USP is the special ingredient that sets your pet daycare business apart from the rest. It’s what makes pet owners choose you over your competitors. Think of it as the secret sauce that makes your business unique and irresistible. 

To define your USP, consider what makes your pet daycare special. Perhaps you offer a specialized training program for dogs, have a large outdoor play area, or provide pampering spa services for pets. By identifying and honing your USP, you create a distinct identity that appeals to your target market. 

By showcasing your unique features, you’ll attract pet owners who resonate with your vision and values.

Conducting Market Analysis

To succeed in the pet daycare industry, you need a comprehensive understanding of your local market and its dynamics. Conducting solid market research and analysis is essential for making informed decisions and tailoring your services to meet the needs of your target customers. 

Start by identifying the demographic profile of pet owners in your area. Consider factors such as age, income level, and location to gain insights into their preferences and behaviors. Next, analyze the competition in your area. Study the services they offer, pricing structures, and customer reviews. This will help you identify gaps in the market and opportunities for differentiation. 

Additionally, keep track of industry trends, such as the demand for eco-friendly products or the rise of dog-friendly workplaces. By staying informed and adapting your strategy accordingly, you can position your pet daycare business as a leader in the market.

Developing Financial Projections

While we believe in the love for animals, we can’t ignore the importance of financial planning for your pet daycare business. Investors are interested in numbers, and your business plan should reflect a realistic financial outlook. Start by creating revenue forecasts based on your market research and projected customer demand. Consider factors such as pricing, capacity, and market share to estimate your monthly and yearly revenue. Next, outline your expense budget, accounting for costs such as staff salaries, rent, utilities, food, and supplies. 

By identifying your fixed and variable costs, you’ll have a clearer picture of your breakeven point and profitability. Finally, create a cash flow projection to ensure you have enough working capital to cover expenses and navigate any unforeseen circumstances. Financial projections demonstrate your understanding of the financial aspects of running a pet daycare business, making your business plan more attractive to potential investors.

Marketing and Sales Strategies

Let’s be honest – you may have the most incredible pet daycare facility, but if no one knows about it, how will it flourish? That’s where marketing and sales strategies come in. These strategies will help you reach pet owners, build brand awareness, and attract customers to your pet daycare. 

Start by understanding your target market and their preferred communication channels. Embrace digital marketing by creating an engaging website, setting up social media profiles, and investing in online advertising. Utilize search engine optimization (SEO) techniques to increase your visibility in search engine results. Consider partnering with local veterinarians, pet stores, and groomers to cross-promote your services. Reward loyal customers with referral programs and offer incentives for repeat bookings. 

By implementing a well-rounded marketing and sales strategy, you’ll create a buzz around your pet daycare and convert curious pet owners into loyal customers.

Operational Plan and Staffing

To ensure a smooth operation and provide excellent care for your furry guests, you need a solid operational plan and a well-thought-out staffing strategy. 

Start by creating an organizational structure that outlines the roles and responsibilities of each team member. Consider factors such as the number of staff needed, their qualifications, and the ratio of staff to pets. Develop procedures for pet care, including feeding, exercise, grooming, and health monitoring. Implement a reservation system to manage bookings and ensure efficient scheduling of pets. Additionally, create guidelines for customer service, including response times, complaint resolution, and client communication. 

Don’t forget to address safety measures and protocols, such as vaccination requirements, cleaning routines, and emergency procedures. By having a well-defined operational plan, you’ll be able to provide a safe and enjoyable environment for pets while streamlining your business operations.

How Pet Daycare Business Plans Differ

Running a pet daycare business comes with its own set of unique considerations. While many aspects of a pet daycare business plan resemble a general business plan, there are specific industry-specific factors to keep in mind. 

For instance, space requirements are essential to ensure that your facility can accommodate multiple dogs comfortably and safely. You should incorporate safety measures such as separate play areas for large and small dogs and regulations for dog-to-staff ratios. 

Additionally, managing group dynamics among different breeds and temperaments is crucial for maintaining a safe and harmonious environment for all pets. Consider implementing behavior assessment procedures and staff training to handle potential challenges. 

Lastly, ensure that you adhere to any local regulations regarding pet daycare facilities, licenses, and permits. By addressing these industry-specific considerations in your business plan, you’ll demonstrate your preparedness and commitment to providing exceptional care.

By following the steps outlined in this article, you’re well on your way to creating a winning business plan for your pet daycare business . Remember, securing capital and standing out in the pet daycare industry requires careful planning, understanding your target market, and differentiating yourself from the competition. So, put those paws to work, brainstorm your unique selling proposition, conduct a thorough market analysis, and let your passion for pets guide you toward a tail-wagging success story.

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Starting a Dog Daycare: Everything You Need to Know

BUSINESS  |   2/22/21 9:19 AM  |  by Gingr

You’ve been pondering it for a while, but you’re finally ready to start your very own dog daycare business. You’ve certainly picked a good time —the pet industry is booming, with recent trends showing that people spent an estimated $99 billion on their beloved animals in 2020. 

You’re probably itching to get moving and start inviting some canine customers into your business, but before you can open your dog daycare, there are a few things you need to know. 

At Gingr , we’re familiar with the ins and outs of starting a dog daycare. We’ve helped hundreds of new daycare owners streamline their management practices with our powerful dog daycare software . We’ve seen what it takes to thrive with a doggy daycare business, and we want to help you achieve that same success. 

We’ve come up with a list of top considerations and insider tips to know before you start your own daycare. We’ll cover these tips in the following sections:

Financial Considerations for Starting a Dog Daycare

Doggy daycare rules and regulations to know, 7 essential steps to starting a doggy daycare.

Starting a dog daycare will take work, but is ultimately one of the most rewarding career paths for animal lovers. By following these tips, anything is paws-ible with your new business. Let’s jump in!

When thinking about starting your dog daycare, the first few questions on your mind are probably related to the financial aspect of the business. Let’s go over some of the most common financial considerations of creating and running a dog daycare.

How much can you make from a dog daycare?

The profitability of your dog daycare will depend on a few factors such as:

• Your ability to reach your target market
• The services you decide to offer (daytime and overnight care, training, etc.) 
• How you decide to price your services
• How you manage your money once you get up and running
• The demand for your services in your community
• Your fixed and variable business costs

The amount of money you’re able to make from your dog daycare business will depend on this unique combination of factors as well as fluctuating market conditions. 

Ultimately, to make a profit, your revenue must outweigh your costs. Check out this dog daycare business plan guide for detailed profit equations you can use to predict your profit margins for your new business.

How much does it cost to open a dog daycare? 

Opening a dog daycare will come with a few basic costs that are necessary to get your business started. These costs include:

• Facilities: You need space for your canine guests to play and sleep when they’re in your care. Therefore, you must purchase or rent a physical facility for your daycare business. 
• Equipment: You’ll need to purchase playground equipment such as play structures, toys, and water features. Additionally, you’ll need care-related equipment such as kennels and cages, food and water bowls, dog beds, leashes, treats, and cleaning supplies.
• Staff: You’ll likely want to bring on a few staff members to help out, so one of your costs will be employee wages.

Although it will add to your start-up costs, investing in high-quality equipment upfront will save you from having to constantly replace items due to wear and tear. Plus, your customers will be impressed right off the bat when they see your business utilizing state-of-the-art equipment.

What is the business model of a dog daycare?

Dog daycares rely on repeating visits from regular customers to stay in business. After all, it’s much more cost-effective to secure the loyalty of a repeating customer than to constantly invest time and money into soliciting short-term clients. 

You have a few options for structuring your dog daycare business model to ensure customer satisfaction and loyalty, including: 

• Pre-paid packages: Offer customers the option to purchase convenient packages. For example, many customers like to drop their dogs off at daycare while they’re at work. You can offer different tiers of prepaid packages such as three, four, or five days of daycare services per week. This way, they won’t have to pay each time they pick up their pooch, which streamlines the customer experience.
• Memberships: Invite customers to join your exclusive loyalty rewards program and offer a discount when they sign up and/or a continuous discounted rate for daycare services. 
• Unique services: Offer your customers something extra that they wouldn’t normally get at other daycares, such as training or grooming services. 

As you start planning for your new daycare, consider which of these business model routes you’re interested in pursuing, and incorporate it into your business plan. For example, if you want to offer special services, plan to hire a groomer or professional trainer on your staff.

How do you price dog daycare services?

It’s critical to strike the right balance with your prices to attract the widest possible range of customers. 

Go too low, and your customers will worry that their precious pups won’t be receiving the highest quality of care. Go too high, and you’ll have to justify the price by offering top-quality services that customers can’t get elsewhere (which can come at a steep cost for your business). Also, if your pricing model is too complicated, it will turn off prospective clients and drive them to seek daycare services with another business.

Conduct careful market research to investigate the prices of other dog daycare facilities in your area to make sure you’re in the right ballpark for your business’s prices. Justify any price increases with enhanced services, and be sure to promote your membership or loyalty program that offers discounted rates to recurring customers. 

Your pricing sends a message to prospective clients right away about the level of service they’ll get with your business, so it’s imperative to make a good first impression.

In addition to financial considerations, legal requirements are another common concern for new doggy daycare owners. You want to make sure you’re conducting a legitimate operation that adheres to all rules and regulations. Read on for top legal considerations to know before starting your daycare business.

Legal Requirements for Starting a Dog Daycare

You’ll have to determine a few legal characteristics of your business before you can get started. First, consider how you want to structure your business entity. You have a few choices for structuring your business: 

• Sole proprietorship: If you’re the only one running your business, you can choose to maintain it as a sole proprietorship. All of your business activities will be under your name, and this is the easiest business structure to form. However, you can be held personally liable for your business’s debts.
• Partnership: If you have one or more business partners, you may consider creating a partnership. In this structure, you and your partners share liability. 
• Corporation: Corporations allow you to set up your business as a separate legal entity. In this case, your business can be held liable for debts or lawsuits rather than you as an individual. However, these are more complicated structures that are generally used for large businesses.
• Limited liability company (LLC): An LLC can consist of just you, your partner, or a group of people. In this structure, your personal assets are protected from any business debts or lawsuits in most cases. 

Consider your long-term business goals to determine which type of structure you’d like to have for your doggy daycare. Once you’ve chosen your structure, be sure to register your business with your state government and consult with a lawyer to help you figure out the legal details.

Additionally, check your state and local laws and regulations to determine the licenses or permits you need to start your business. Each state has different requirements for opening a business and specific health and safety regulations for animal-related businesses.

Dog Daycare Insurance

You’ll want to purchase business insurance before opening your doors to puppy pals and their caretakers. Dog daycare business insurance protects your business from liability if an accident or injury were to occur.

There are three types of pet business insurance you should look into as you plan for your grand opening: commercial liability insurance, property insurance, and professional liability insurance:

• Commercial liability insurance: This insurance covers your business if an accident were to occur in the day-to-day operations of your dog daycare. For example, a customer might slip and get injured within your daycare, or a pipe could burst in your facility and damage nearby businesses. 
• Property insurance: Property insurance covers your physical daycare facilities and equipment if something like a natural disaster, robbery, or fire occurred. 
• Professional liability insurance: This insurance type relates to any accidents or injuries that directly relate to the activities of your dog daycare. For example, two dogs could get in a fight, or a dog could break free and run away. Your professional liability insurance can protect you and your business from fault in these instances. 

Of course, you’ll do everything you can to keep customers, employees, and pups safe, but accidents happen. It’s better to be prepared ahead of time to protect yourself and your business.

Common Dog Daycare Rules

You’ll want to set some ground rules before you open your business so customers know what to expect and what’s required on their end before their dogs can visit. These rules are also critical to mitigate risk and protect yourself and your business from liability. A few common dog daycare rules are:

• Age restrictions: Extremely young puppies can be at risk in a dog daycare setting, so you’ll want to specify age restrictions for your daycare, such as no pups younger than five months. 
• Behavior: You don’t want to put other dogs at risk by having misbehaved or aggressive dogs at your daycare. Institute a rule that says canine guests should not have a history of aggression toward other dogs or people. 
• Vaccination requirements: All dogs should be up-to-date on their vaccinations before being allowed to play or stay at your dog daycare. 

As you grow your client base, organizing and maintaining all your records on each visitor will start to get complicated. Dog daycare software can be a major asset in helping you collect client information to reference and update as needed. Your software system will store all the important details in one place, keeping your records organized and saving you time and hassle.

Now that we’ve laid down a few foundational considerations, it’s time to get into the nitty-gritty of your planning process. Here are the essential steps to take to get your daycare business up and running:

1. Create a business plan. 

Your dog daycare business plan will be a blueprint for your business to present to prospective investors or use as a guiding document as you make strategic decisions. You can check out this guide for a full explanation of how to create a dog daycare business plan, but we’ll cover some of the highlights here. 

As you create your business plan, you’ll go through the important process of examining the state of the dog daycare market in your local area, identifying key competitors, and figuring out how your business will serve an existing need to reach an untapped audience. 

In this process, be sure to define your niche—your business’s unique offerings that customers won’t find anywhere else. For example, maybe you have the biggest puppy playground in town complete with a splash pad, or perhaps you offer training or grooming services to daycare customers. Defining and marketing your niche services will give your business a competitive edge and help you stand out and attract more customers.

In your business plan, fully describe your tactics for carving your own place in the market and getting your services in front of prospective customers. Having a well-structured strategy will give you a stronger argument if you choose to present your business plan to prospective investors.

2. Choose a facility.

Once your business plan is complete, you’ll be ready to search for a home for your dog daycare business. In your search for the perfect facility, be sure to consider the following:

• Your budget: Ensure you stay in your price range in your hunt for a facility. You shouldn’t sink all your funds into your leasing or paying off your facility costs because you’ll have little to nothing left to spend on equipment or employee salaries.
• Your distance from your target customer base: You don’t want to be a significant distance away from your target market, or no one will want to use your services. Choose a facility that is conveniently located to where your customers reside.
• The amount of space you need: To run a proper dog daycare facility, you’ll need a lot of outdoor space to fit playground equipment for dogs to enjoy. Additionally, you’ll need lots of indoor space to store kennels and cages for overnight guests and have an indoor play area in case of inclement weather. Your final choice of location should have enough space for all dogs to lounge and play comfortably, and for your employees to carry out their duties as well. Find a space that can accommodate these considerations and also give you the room you need to grow. The more space you have, the more doggy daycare customers you can accommodate at once.

3. Acquire equipment and pet business software. 

Although you may choose to go above and beyond and offer special services, there are a few basic equipment pieces every dog daycare needs to be successful. Make sure you purchase the following items for your new business:

• Playground equipment
• Toys and balls
• Kennels and crates
• Food and water bowls
• Poop scoopers and bags
• Cleaning supplies
• First aid kits for dogs and employees
• Laundry supplies and a washer/dryer

Besides physical equipment, you’ll want to invest in quality dog daycare business software to help you manage the scheduling and client relationship aspects of your business. Dog daycare business software has many benefits: 

• Saves time. You won’t have to spend endless hours rifling through client information or payment slips to find the information you need. All important data is kept in one centralized place.
• Manages schedules. You can book customer appointments as well as manage employee schedules from your software system. 
• Helps retain customers. Through your dog daycare software, you can send messages to customers and provide updates on their pets throughout their stay at your facility. 
• Facilitates marketing efforts. You can draft and send automated messages using your daycare software to keep your customers and prospective clients updated on business changes or upcoming promotions. 

With the combination of top-quality equipment and an easy-to-use, convenient software system, you’ll be one step closer to opening your doors to furry friends.

4. Hire dog daycare staff.

When thinking about hiring new employees for your dog daycare, you want to look for people who are dog lovers through and through. However, ensure they also have specific qualifications that will make them knowledgeable and dependable employees that add value to your business.

For example, search for prospective employees who have a baseline of training in canine first aid as well as some experience with caring for dogs in the past. Employees who have experience working with dogs can help create a safe environment for dogs from all backgrounds to mingle and play. You might even consider bringing on staff members with a wider range of experiences, including backgrounds in dog training or grooming, to give your business a unique service offering. 

Last but not least, hire employees who are flexible and able to adapt to change. As your business grows, you want people on your team who can adapt to new processes quickly and effectively carry out your vision for your daycare.

5. Evaluate behavior to keep pets and staff safe.

Steps for running dog temperament tests include interviewing pet parents, conducting evaluations and observations, and taking notes to reference while assigning dogs to playgroups. If a dog acts aggressive or displays behavioral issues at any point throughout the evaluation, stop the test and inform the owner that their dog isn’t a good fit for your daycare. 

6. Market your dog daycare services to pet owners. 

Once you’ve secured your facility, equipment, and staff, there’s one more piece of the puzzle to complete your dog daycare business: finding new customers! A comprehensive marketing strategy is key to connecting with prospective customers and earning their trust.

Take a multichannel approach to your marketing to ensure your target audience becomes aware of your business offerings without overwhelming on any one platform. Spread the word through: 

• Social media: Create a business page for your doggy daycare on Facebook and Instagram and connect with other dog daycare businesses as well as dog owners in your area to start growing your following. Consider purchasing social media ads to promote your business directly to your target audience. 
• Email: Start developing your email list by promoting your newsletter sign-up on your social media pages. Email is an effective way to reach customers directly and provide them an opportunity to respond and ask questions. 
• Direct mail/flyers: Similarly, direct mailers or flyers reach your target audience directly because you can send materials right to certain addresses. Be sure to include your location, hours of operation, phone number, website, and social media handles on your mailers and flyers so people know how to reach you. 
• Local radio/TV ads: If there’s room in your budget, you could consider taking out an ad spot on a local radio or TV station. Use the opportunity to introduce yourself and your staff to give your business a friendly face. 

Ensure all your marketing materials are branded with your business’s logo and colors to leave your audience with a professional impression of your business. Also, lean into the playful aspect of your business. Just about everyone loves dogs and puppies, so show images or videos of puppy pals playing and having the time of their lives at your daycare to entice potential customers.

7. Provide a great experience and watch your business grow.

By taking the necessary steps to create a plan for your business strategy and emphasizing safety at every step, your business will flourish. Remember that when times get tough, you can rely on your business plan to guide you through any rough patches. 

Also, be sure to prioritize proper management practices and treat your staff with respect to create a positive, supportive culture within your business. Customers will note your upbeat attitude and be drawn toward the cheerful, fun environment you’ve created, and you’ll retain the support of your staff during times of change or challenges.

Wrapping Up

With these tips and strategies in your toolbox, your dog daycare business will be ready to invite in a pack of hounds in no time. If you’re looking for additional information as you plan for your doggy daycare, check out these resources: 

• Dog Daycare Business Plan. Your dog daycare business plan will take time and effort, but will ultimately be one of your greatest assets as you move forward. Use this guide to help you make your plan. 
• 10 Pet Industry Trends to Know. As a new pet-care business owner, you need to stay in the know of the latest trends in the industry. Check out this article to discover what’s in vogue.

Related Blog Posts

The impact of ai on pet care and management, organizing a pet adoption fair at your facility, dog bar trends: what’s new, optimize your pet-care business, find out how gingr helps you streamline and grow your business..

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Dog Daycare Business Plan Template

Whether you want to start your own dog daycare business or expand an existing one, you need a business plan. the following dog daycare business plan template lets you know what elements you need to include in a successful dog daycare business plan..

To ensure your dog daycare business success in this highly competitive market, you need a properly structured dog daycare business plan. With over 12 years of experience, we have helped over 5,000 entrepreneurs create business plans to start and grow their dog daycare businesses.If this is your first time writing a business plan, we’ll walk you through these sections and give you some key things to consider.

Things to Know Before Writing a Day Care Business Plan

The dog daycare industry primarily provides services such as pet boarding, grooming, and training. The industry includes animal shelters, obedience training services, guard dog training services, pet boarding services, and animal grooming services.

Operators in this industry do not typically retail products, board horses, transport pets, or practice veterinary medicine.

Since pets are becoming an increasingly valued part of families, consumers are increasingly spending on dog grooming services, which benefits pet grooming and boarding services operators.

During the three years to 2024, rising per capita disposable income and a high pet ownership rate will fuel industry growth.

Accordingly, industry revenue is expected to grow by 2.7% annually to $9.2 billion by 2024

Key Success Factors for Day Care Business

Despite the challenges of the Day Care industry, We have identified five factors that can help you boost profitability, efficiency, and ultimately success.

• The proximity to key markets: Being located near households with high pet ownership rates, especially dogs and cats, should benefit industry players by ensuring consistent demand for services.
• An effective quality control system: High-quality pet grooming and other pet care services ensure repeat customers and word-of-mouth recommendations.
• Multi-skilled, flexible workforce: Having skilled and flexible employees who can perform a variety of tasks and services reduces labor costs and increases industry expertise.
• Government regulation compliance: Meeting all government requirements for licensing, pet licenses, and animal regulations is a must for all operators in the pet and animal business.
• Word of mouth recommendations: Businesses that maximize customer satisfaction are more likely to receive favorable word of mouth recommendations, which are necessary to gain new customers.

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What is a Dog Daycare Business Plan?

A business plan for a dog daycare business is a written document that sets your company’s financial goals and discusses how you’ll reach them.

It describes your business concept, defines your target clients, explains your marketing strategy, and details your financial projections, among other things.

A solid, comprehensive plan will serve as a road map for the next three to five years of the dog daycare business. Any bank or investor you approach will require a dog daycare business plan, so putting one together will be critical to securing funding.

In short, writing a business plan can help you succeed if you’re thinking of starting a dog daycare business or pitching to investors or venture capitalists.

Why You Need a Dog Daycare Business Plan

A business plan provides an overview of your dog daycare business as it stands today, and outlines your growth plans for the next five years. It also explains what your business objectives are and how you plan to achieve them. A market research report is also included to support your plans.

Dog daycare agents who have a business plan grow 30% faster than those who don’t, and 71% of fast-growing businesses have one.

The following is what a good dog daycare business plan will show you:

• Where you are right now
• What you want to achieve
• How will you get there
• How will you measure your success
• Where and when to make corrections

A dog daycare business plan is a living document that should be updated annually as your company grows and changes.

Funding Sources for Dog Daycare Business

The main sources of funding for a dog daycare business are personal savings, government grants and business funding, business credit cards , and bank loans. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay the loan and interest.

To gain this confidence, the loan officer will not only look at your financials. However, they will demand a professional plan. A well-developed business plan will ensure that they are confident that you can successfully run a business.

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How to Write a Dog Daycare Business Plan

To write a dog daycare business plan, you don’t need to be an expert. Our step-by-step guide will show you how to write a dog daycare business plan, or you can just download our proven  sample business plans  to get a better idea.

Free Dog Daycare Business Plan Template PDF and Word

Download our dog daycare business plan in PDF and Word here.

Executive Summary

The executive summary is the most important part of the document since it outlines the whole business plan. Despite the fact that it appears first in the plan, write the executive summary last so you may condense key concepts from the other nine parts.

It’s a part that catches the investor’s eye and provides key information about your company’s overview and upcoming short- and long-term goals.

Tell them what kind of dog daycare business you have and what stage you’re in; for example, are you a startup, do you have a dog daycare business that you want to expand, or do you have a lot of dog daycare businesses?

Finally, an executive summary should provide investors with a preview of what they may expect from the rest of your document.

• Provide a high-level overview of the dog daycare industry
• The name, location, and mission of your dog day care company
• A description of your dog daycare business, including management, advisors, and a brief history
• Discuss the type of dog daycare business you are operating, Give an overview of your target customers., and how your company differs from competitors in the industry
• Create a marketing plan that describes your company’s marketing strategies, sales, and partnership plans.
• And give an overview of your financial plan

Check out these executive summary examples to help you write a perfect one for your dog daycare business plan.

Free: Executive Summary Examples

An executive summary is the most important part of your business plan, and it need not be challenging to write. This is why we have put together some awesome free Executive Summary examples for you.

Company Analysis

The company analysis follows the executive summary as the second section of a dog daycare business plan. Your company overview will be short and clear, similar to the executive summary.

Even if they just have a few minutes, your reader has to understand what your company does and who your customers are.

The following sections will be included in your business plan’s Company Analysis:

• Company summary: Your company analysis will describe the type of dog daycare business you are running and its future goals. The type of dog daycare business you might be focused on ( Cage-free play, 100% cage-free, Extended-stay dog boarding, Kennel, Indoor and Outdoor dog daycare, etc)
• Company history: When and why did you start your dog daycare business?
• What milestones have you achieved so far? Your milestones could include sales goals achieved, new store openings, etc.
• Legal structure and ownership: Do you have S-Corp status? Is it an LLC ? A sole proprietorship ? Describe your legal structure.
• Mission statement: An overview of your dog daycare company’s guiding principles. Learn how to write a perfect mission statement .

Industry Analysis

You need to include an overview of the dog daycare business in the industry analysis you performed before sitting down to write your dog daycare business plan.

While this research may appear to be unnecessary, it helps you to build strategies that maximize business opportunities while lowering or avoiding the identified risk.

Furthermore, market research can improve your strategy, especially if it identifies market trends. As an example, If there is a trend toward cage-free dog daycare, it would be beneficial to ensure that your plan includes this option.

The third purpose for conducting market research is to demonstrate to readers that you are an industry expert.

Industry analysis can be presented as a 8-step process when written as part of a company’s business plan.

• Give a quick overview of the dog daycare industry. Define the dog daycare business in terms of size (in dollars), historical background, service region, and products.
• Examine previous trends and growth patterns in the dog daycare industry.
• Identify the market’s major competitors.
• Age, gender, and general lifestyle of the targeted market
• Determine the factors that have an impact on the dog daycare industry. These might include government regulatory rules and other businesses’ competitive activities.
• Using research data, the industry forecast expected growth over the next five to ten years. Predictions should be made for both the long and short term.
• Describe how your dog daycare business intends to position itself in the industry. Concentrate on how your dog daycare business can benefit from opportunities highlighted in the industry.

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Customer Analysis

The first condition for a dog daycare business is to identify its target customers clearly. Customers can be categorized into the following segments:  Pet owners aged 30 to 64 years, Family consumers with children under 18, etc.

The customer analysis section is an important part of any dog daycare business plan since it evaluates the consumer segments that your company serves. It identifies target customers, determines what those customers want, and then explains how the products will meet those requirements.

If you intend to offer extended-stay dog boarding, you should think about segmenting customer behaviors as well. For marketing and advertising, local dog owners who are planning a vacation would be a good target.

Customer analysis may be divided into two parts: P sychosocial profiles and Demographic profiles .

With regards to demographics , include information about: the ages, genders, locations, and income levels of your customers. When targeting businesses, describe what kind of business, size, and location your target customers are.

The psychological profiles of your target clients reveal their wants and needs. The better you understand and identify these demands, the better your chances of attracting and retaining customers will be.

Competitor Analysis

Who are the main competitors in your target market, and what makes them your main competition? How will you beat them? Use competitor analysis to:

• Identify the strength and weakness of your dog daycare business competition.
• Search for opportunities to distinguish your dog daycare company from competitors.

The first step is to determine who your direct and indirect competitors are.

The direct competition consists of other dog daycare businesses. These are alternatives to direct competitors that customers have.

Indirect competitors, such as dog walkers, are other options for customers to purchase from you that are not direct competitors. You must mention such competition to demonstrate that you understand that not every dog owner uses a dog daycare every day.

When it comes to direct competition, you should describe the other dog daycare businesses you compete with. It is most likely that your direct competitors will be dog daycare company located nearby.

Once you’ve identified the competition, concentrate on the direct, head-to-head competitors, since they are the most threatening to your dog daycare business— but keep an eye on the indirect competition as well, just in case.

Provide an overview of each direct competitor’s business and detail their strengths and weaknesses.

You will be able to position yourself competitively in the market if you perform proper competition research. Perform a SWOT Analysis to learn your competitors’ strengths, weaknesses, and competitive advantages in the following areas:

• Prices – Are they offer cheaper dog daycare service or more costly than you and other competitors, what value do buyers get for that price?
• Quality –  Are they offer better quality services, the perceived worth in the eyes of the customers
• Customer service – How they respond to their consumers, whether they treat them poorly or well, and the degrees of satisfaction customers show
• Reputation — The sum of everything mentioned above: their credibility, how loved the brand is, and the loyalty of their customers

The final section of your competitive analysis should include a list of your areas of competitive advantage. for example: Are you going to offer premium dog daycare services? Will you offer unique service and plans that your competitors don’t offer? Will you offer better pricing or will you offer greater customer support?

Consider how you will outperform your competitors and include them in this portion of your dog daycare business plan.

Free: SWOT Analysis Examples

Take advantage of our free SWOT analysis examples. Make your business future-proof by identifying your strengths, weaknesses, opportunities, and threats using this free SWOT Analysis Template.

Marketing Plan

Creating a marketing plan for a dog daycare business involves identifying the target demographic and finding dog daycare services that suit their preferences.

As part of your marketing plan for a dog daycare company, you should include:

Pricing and Product Strategy

Your dog daycare business must offer services that are different from those of your competitors, better in quality and  and plans are available in affordable prices. Research what your competitors offer and how they price their dog daycare services. Unique and quality services identifies your dog daycare business as the place to go for unique dog daycare services and differentiates it from others.

Placing and Promotions

Is your dog daycare business located near a big colony, office buildings, gyms, etc. That is heavily populated? Discuss how your location might be able to provide a steady stream of customers.

Promoting your dog daycare business is the final part of your marketing plan. In this step, you document how you will drive customers to purchase your dog daycare services. A few marketing methods you could consider are:

• Get a website for your business and promote it
• Create and use social media accounts for your business
• Marketing on social media
• Advertise in local papers and magazines
• Hold special pet events

You should also think about your services Unique Selling Proposition (USP), which should explain why clients should choose you over other dog daycare businesses. Ensure that your USP is reflected in your market.

Pro Tips: Learn how to write a marketing plan in a business plan .

Operations Plan

While the previous sections described your goals, your operational plan in a business plan discusses how you will achieve them.

An operations plan is helpful for investors, but it’s also helpful for you and employees because it pushes you to think about tactics and deadlines.

Your operations plan should be divided into two individual parts, as seen below.

Everyday short-term processes include all of the tasks involved in running your dog daycare, such as check-in, supply procurement, facility cleanliness, and so on.

Long-term goals are milestones you hope to reach. It may be the date when you expect to serve your 1000th customer or when you hope to reach $X in sales. Another example would be when you expect to hire your Xth employee or start a new location or service.

Management Team

A strong management team is necessary to demonstrate your dog daycare’s ability to succeed as a business. Highlight the backgrounds of your key players, emphasizing the skills and experiences that demonstrate their ability to grow a business.

You and/or your team members should ideally have prior experience working in a dog daycare company. If so, emphasize your knowledge and experience. However, you should emphasize any experience that you believe will help your dog daycare business succeed.

Consider forming an advisory board if your team is lacking. An advisory board would consist of 2 to 8 people who would act as mentors to your company. They would assist in answering questions and providing strategic direction. If necessary, seek out advisory board members with experience running dog daycare company and/or retail and small businesses.

If your are DIY Business plan writer, you need this guide on how to write a management team section in a business plan.

Free: Business Plan Examples

Do you need help creating a business plan? Check out these six free, proven business plan examples from different industries to help you write your own.

Financial Plan

As part of your financial plan, you should present a 5-year financial statement broken down monthly or quarterly for the first year, and then annually. Financial statements include your income statement, balance sheet, and cash flow statement.

Income Statement

A profit and loss statement is more commonly called an income statement. It shows your revenue and subtracts your expenses to determine whether you were profitable or not.

As you develop your income statement, you need to develop assumptions. For instance, Will sales grow by 2% or 11% per year? Your choice of assumptions will greatly impact your business’s financial forecasts. Conduct as much research as possible in order to ground your assumptions in reality.

Free: Income Statement Template

Create a financial statement for your business by downloading our free income statement templates.

Balance Sheet

While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities.

The balance sheet shows your dog daycare business’s net value at a specific point in time. It categorizes all of your company’s financial data into three categories:

• Assets: Tangible goods with the monetary worth that the company owns.
• Liabilities: Debt owing to a company’s creditor.
• Equity: The net difference when the total liabilities are subtracted from the total assets.

The equation that expresses the relationship between these financial data elements is Assets = Liabilities + Equity.

Create a pro forma balance sheet for your dog daycare business plan that highlights the information in the income statement and cash flow projections. A balance sheet is normally prepared once a year by a company.

Balance sheets indicate your assets and liabilities, and while they contain a lot of information, they are simplified to highlight the most important things you need to know.

For example, spending $100,000 to build out your dog daycare business will not result in instant revenues. Rather, it is an asset that should help you earn money for many years to come.

Similarly, if a bank write you a check for $50,000, you do not have to pay it back right now. Rather, that is a liability that you will repay over time.

Cash Flow Statement:

Your cash flow statement will help you determine how much money you need to start or grow your dog daycare business. In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a dog daycare business:

• Cost of equipment like kennels, dog beds, activity centers, etc.
• Location build-out including design fees, construction, etc.
• Cost of food and treats and maintaining an adequate amount of supplies
• Taxes and permits
• Payroll or salaries paid to staff
• Legal expenses
• Business insurance

Recommended Resources: Writing a dog daycare business plan yourself? this guide on how to write a financial plan in a business plan might be helpful for you.

Free: Balance Sheet Template

Create a financial statement for your business by downloading our free balance sheet templates.

List any additional material you cannot include elsewhere, such as resumes from key employees, licenses, equipment leases, permits, patents, receipts, bank statements, contracts, and personal and business credit histories.

Attach your full financial projections along with any supporting documents that make your plan more compelling in the appendix.

Pro Tip: Learn how to write a business plan appendix for your dog day care business.

Summary of the Dog Daycare Business Plan

A dog daycare business plan is a worthwhile investment. As long as you follow the template above, you will become an expert in no time. By following the template, you will understand the dog daycare business, your competition, and your customers. The plan will help you understand the steps necessary to launch and grow your dog daycare business.

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OR, we can create your dog daycare business plan for you

Since 2010, Wise business plans’ dog daycare business plan writers has developed business plans for thousands of companies that have experienced tremendous success.

Get started on your business plan on dog daycare  today!

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Doggy Daycare

Back to All Business Ideas

How to Start a Doggy Daycare

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on December 22, 2021 Updated on May 27, 2024

Investment range

$3,050 - $15,100

Revenue potential

$32,000 - $160,000 p.a.

Time to build

0 – 3 Months

Profit potential

$30,000 - $65,000 p.a.

Industry trend

More and more dog owners today consider their pets an integral part of their family, almost like their children, and refuse to leave them alone while they’re at work. This explains why the global pet sitting market is worth more than $2.5 billion and still growing.

If you’re a true dog lover, you can start your own doggy daycare and grab a share of that market while spending quality time with your furry friends. Demand for doggy daycare is massive, and it’s a simple business to start from home if you have a bit of space. You will, of course, run into challenges, so it’s a good idea to start with the right knowledge.

Thankfully, this step-by-step guide has all the information and insight you need to develop and launch your doggy daycare and put you on the path to puppy-filled prosperity.

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Step 1: Decide if the Business Is Right for You

Pros and cons.

Every business has pros and cons that you should consider before deciding if a doggy daycare is right for you.

• Playtime – Dogs are able to interact and play with other dogs
• Exercise Opportunity – Provides physical and mental activities for dogs
• Huge Market – Over 70 million US households own a dog
• Peace of Mind – Gives dog owners peace of mind
• Risk of Injuries – Dogs might get into fights with each other and get hurt
• Stressful environment – Some dogs might find it overwhelming and stressful

Doggy daycare industry trends

Market analyst Grand View Research says the pet sitting market includes daycare services, dog walking, pet transportation, and more. 

There’s also an opportunity for the savvy entrepreneur to make real money in the pet tech industry. Research firm Global Market Insights valued the pet tech industry at more than $5 billion in 2021 and expects it to grow a whopping 20% annually through 2028.(( https://www.gminsights.com/industry-analysis/pet-tech-market ))

Industry size and growth

• Industry size and past growth – Grand View Research values the global pet sitting market at $2.6 billion, with the US contributing more than a third of the revenue.(( https://www.grandviewresearch.com/industry-analysis/pet-sitting-market ))
• Growth forecast – The global market is expected to grow almost 9% annually through 2027.
• Number of businesses – The US has the most doggy daycare facilities in the world at 374 as of October 2021.(( https://www.money.co.uk/credit-cards/cost-of-doggy-daycare ))

Trends and challenges

Trends in doggy daycare industry include:

• Pet humanization culture and return-to-work trend will drive demand for doggy daycare services
• Pet tech, such as smart vests that monitor heart rate and collars with a geo-location device, are increasingly popular
• Use of digital technologies in providing dog owners updates about their pets

Challenges faced by the doggy daycare industry are:

• Risk of bullying, fights, and injuries
• Maintaining the health and safety of dogs

Consumer spending

In 2021, US pet owners spent an incredible $126 billion caring for their animals, according to research firm Statista.(( https://www.statista.com/statistics/253976/pet-food-industry-expenditure-in-the-us/ ))

• Average consumer spend – Dog owners each spend an average of $228 a year on kennel boarding, according to the latest APPA survey.(( https://www.americanpetproducts.org/press_industrytrends.asp ))
• Potential customer base – Nearly 70 million US households own a dog.
• Average prices – Doggy daycare in the US costs $25 per day and $15 per half-day.(( https://homeguide.com/costs/dog-boarding-cost ))

What kind of people work in doggy daycare?

• Gender – 94% of animal daycare providers in the US are female, while 6% are male.(( https://www.zippia.com/animal-daycare-provider-jobs/demographics/#gender-statistics ))
• Average level of education – 36% of animal daycare providers have a high school diploma and 25% hold an associate degree.(( https://www.zippia.com/animal-daycare-provider-jobs/demographics/#degree-level-types ))
• Average age – The average age of an employed animal daycare provider in the US is 32 years old.

How much does it cost to start a doggy daycare business?

The startup costs for a doggy daycare range from $3,000 to $15,000. The high end includes renting a facility, so if you start your daycare from home your costs will be much lower.

You’ll need a handful of items to successfully launch your doggy daycare business. Here’s a list to get you started:

• Crates for holding dogs
• Food and water bowls
• Toys and treats

How much can you earn from a doggy daycare business?

The average price of doggy daycare in the US is $25 per day per dog. If you start your daycare from home, your profit margin should be around 90%.

If you care for five dogs a day, five days a week you’ll bring in over $32,000 in annual revenue. This would mean almost $30,000 in profit, assuming that 90% margin. As your brand gains recognition, you might rent a commercial space and hire staff, reducing your margin to around 40%. If you care for 25 dogs a day, 5 days a week, you’ll have annual revenue of over $160,000 and profit of $65,000.

What barriers to entry are there?

There are a few barriers to entry for a doggy daycare. Your biggest challenges will be:

• You need enough space, including outdoor space, to host at your home
• You’ll face competition from established area daycares

Related Business Ideas

How to Start a Dog Walking Business

How to Start a Dog Grooming Business

How to Start a Dog Treat Business

Step 2: hone your idea.

Now that you know what’s involved in starting a doggy daycare, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research doggy daycares in your area to examine their products and services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a doggy daycare that watches dogs on evenings, weekends, holidays, or a daycare that offers special grooming services.

You might consider targeting a niche market by specializing in a certain aspect of your industry.

This could jumpstart your word-of-mouth marketing and attract clients right away.

What? Determine your services

You may decide to offer other products or services to increase revenue. You could offer:

• Bathing and grooming
• Dog training
• Overnight boarding

How much should you charge for doggy daycare?

Prices for doggy daycare range from $12 to $38 per day. Once you open a facility outside your home you’ll have costs for rent, overhead, and labor. At that point you should target a profit margin of around 40%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be dog owners, most likely professionals who need daycare during work hours. You can probably find these people on Facebook or LinkedIn.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out a facility. You can find commercial space to rent in your area on Craigslist , Crexi , and Commercial Cafe .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Doggy Daycare Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better
• The name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “pet daycare” or “doggy daycare”, boosts SEO
• Choose a name that allows for expansion: “Doggy Daydreams Co.” over “Small Dog Daycare Services”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Discover over 250 unique doggy daycare business name ideas here. If you want your business name to include specific keywords, you can also use our doggy daycare business name generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Doggy Daycare Business Plan

Here are the key components of a business plan:

• Executive Summary: A concise summary outlining the core aspects of the doggy daycare business plan, including its objectives, mission, and key highlights.
• Business Overview: An overview of the doggy daycare business, providing information on its structure, location, and the specific needs it aims to address in the market.
• Product and Services: Detailed descriptions of the services offered, such as dog daycare, grooming, and training, emphasizing the unique selling points that set the business apart.
• Market Analysis: A thorough examination of the target market, including demographics, trends, and potential growth, to inform strategic decisions and ensure alignment with customer needs.
• Competitive Analysis: Evaluation of competitors in the doggy daycare industry, identifying strengths, weaknesses, opportunities, and threats to help the business differentiate and position itself effectively.
• Sales and Marketing: A comprehensive plan outlining how the business will attract and retain customers, encompassing advertising, promotions, and customer relationship strategies.
• Management Team: Introductions and brief bios of the key individuals who will be managing and leading the doggy daycare business, highlighting their relevant experience and skills.
• Operations Plan: A detailed plan describing the day-to-day operations of the doggy daycare, covering staffing, facility management, and processes to ensure smooth and efficient business functioning.
• Financial Plan: A projection of the doggy daycare’s financial performance, including startup costs, revenue forecasts, and profit margins, providing a roadmap for financial sustainability and growth.
• Appendix: Supplementary materials, such as additional research, legal documents, and any other relevant information supporting the components outlined in the business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to doggy daycare centers.

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your doggy daycare will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just needs to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method, but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a doggy daycare business. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Doggy Daycare Licenses and Permits

Starting a doggy daycare business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your doggy daycare business as a sole proprietorship. Opening a business bank account is quite simple and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You can use industry-specific software, such as Pawfinity , DoggieDashboard , or ProPet , to help you with scheduling, online booking, and dog check-ins and check-outs.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Professional Branding — Develop a cohesive brand identity that emphasizes care, warmth, and professionalism across all touchpoints, including logo, website, facility décor, and staff uniforms.
• Local SEO — Optimize your website to rank well for local searches related to doggy daycare and pet care services, ensuring your facility is easily found by nearby pet owners. Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• Referral Network Building — Establish strong referral partnerships with local veterinarians, pet stores, and groomers to drive word-of-mouth recommendations.
• Social Media Engagement — Utilize platforms like Instagram and Facebook to post engaging content such as photos and videos of dogs, customer testimonials, and educational pet care tips.
• Dog Care Blog — Create and maintain a blog to share valuable information on dog health, behavior training, and the benefits of socialization.
• Email Newsletters — Send regular updates about new services, events, or promotions to keep your clients and potential customers engaged.
• Customer Success Stories — Feature testimonials and stories from satisfied clients to highlight the positive impacts of your services.
• Open House Events — Invite potential clients to tour your facilities, meet the staff, and observe the care provided to pets.
• Partnerships with Pet Businesses — Collaborate with local pet-related businesses for cross-promotions and mutual benefits.
• Loyalty Rewards Program — Implement a program that offers discounts or special perks to regular clients to encourage repeat business.
• Targeted Local Advertising — Use localized advertising strategies like community boards, newspapers, and social media ads to reach pet owners in your area.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your doggy daycare meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your doggy daycare business could be:

• A playground paradise for your beloved dog
• Old and young dogs can learn new tricks with our training
• Give your dog a spay day with our expert bathing and grooming

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a doggy daycare business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in pet care services for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in doggy daycare. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a doggy daycare business would include:

• Dog Caregivers – feed and care for dogs
• Groomers – bathe and groom dogs
• Marketing Lead – SEO strategies, social media, other marketing

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Doggy Daycare – Start Making Money!

Demand for doggy daycare is growing as people increasingly give their pets the level of care that used to be reserved for people. It’s an industry worth more than $2.5 billion, and you can grab a piece of that market for a very small investment. 

It’s a fairly simple business to start from home and eventually expand into a larger facility. The profit potential is good, especially if you’re able to franchise and take over the doggy daycare market! You’re off to a great start by acquiring the invaluable information in this guide, and you should now be ready to begin your entrepreneurial journey.

• Doggy Daycare Business FAQs

As long as there are no restrictions where you live, you can run a doggy daycare from home. You need to have enough space, including outdoor space, for the dogs to play and be well-supervised.

Prices for doggy daycare can be as high as $38 per day, so you can make money even if you just care for a few dogs in your home. You can become more profitable if you rent a larger facility so that you can care for many dogs at once.

You need to offer a great environment for dogs and hire qualified people to work in your daycare. You could also offer extended hours.

It would be very difficult to start a doggy daycare on the side because most people need doggy daycare during normal business hours. An alternative would be a pet sitting business. 

You can take courses to learn dog handling, but you may want to refuse clients that have aggressive dogs.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Doggy Daycare Name
• Create a Doggy Daycare Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Doggy Daycare Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Doggy Daycare - Start Making Money!

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