How to Start a Dog Daycare and Pet Hotel
The How to Start a… series provides practical case studies to help you think about starting a successful business. It helps you with costs, opportunities, considerations, and so on.
The pet care industry has shown significant growth. The American Pet Products Association (APPA) has reported that the industry generated over $103.6 billion in 2021. Dog daycare services and pet hotels are a major part of this market, with many pet owners needing a safe and enjoyable environment for their dogs when they aren’t at home. Here’s what you need to know to start a dog daycare and pet hotel.
What Are the Average Costs?
Typically, the average cost of starting a doggy daycare and pet hotel on your own ranges from $75k to $200k. On the other hand, if you choose to buy a franchise location, the startup costs range from $106K - $1.8M
The costs vary according to:
Location
Size of the facility
Level of service
Franchise vs. Do-It-Yourself (DYI)
Here is a list of potential startup costs for opening a DYI doggy daycare and pet hotel:
1. Building Rent/Lease: This is the cost of renting or leasing a space of 2,000 sq./ft. to 5,000 sq./ft. where you will operate the daycare facility and hotel. It can range between $2,500-$10,000 per month.
2. Utilities and Insurance: You will need to budget for utilities like electricity, water and heat, as well as general liability and property insurance. This could cost you $500-$1,500 per month.
3. Furniture and Decor: This includes office furniture like a desk, computer, chairs, shelving, and decor for the reception area. It could cost you around $5,000-$20,000.
4. Dog Care Equipment and Supplies: These include kennels, crates, dog beds, blankets, bowls, beds, dog food, toys, play equipment, cleaning supplies, grooming supplies, first aid kit, and more. This could cost you $10,000-$30,000, depending on the number of dogs you can take in.
5. Staff Salaries: You will need to budget for payroll, salary, or hourly rates for your staff. This includes dog handlers, administrative personnel, and management. It could cost you $5,000-$15,000 per month.
6. Marketing Expenses: You will need to promote your doggy daycare business and pet hotel facility. This may include creating a website, flyers, business cards, and advertisements. This could cost you $2,500-$5,000 per month.
7. Legal and License Fees: You will need to register your business, obtain licenses and permits, and obtain legal and accounting services to keep your business in compliance with state and local laws and legal requirements. This could cost you $2,500-$5,000.
8. Business management software: Staying organized is crucial for success. Invest in software that can help you manage appointments, bookings, and client information. This could cost you $1,000-$3,000 to set up.
9. Working Capital: You will need cash set aside to cover your doggy daycare and pet hotel’s expenses for a minimum of three months or until the doggie daycare business begins to earn a profit and cover its own expenses. This could cost you $20,000-$30,000.
10. Total Estimated Cost: These costs can add up quickly depending on a variety of factors. An average estimate for a doggy daycare and pet hotel startup cost is between $75,000-$200,000 to cover initial equipment, supplies, and the first three months of expenses. Keep in mind that these costs could be higher or lower depending on your location, size, and other unique factors.
What are the Benefits of Owning a Doggy Daycare and Pet Hotel?
1. Close Interaction with Dogs: Interacting with dogs throughout the day, playing with them, and taking care of them can be incredibly rewarding and fulfilling.
2. Flexible Schedule: Owning a full dog daycare business and pet hotel allows you to design your schedule and work as much or as little as you want, accommodating your personal life.
3. Satisfaction: Knowing that you are providing a safe, clean, and fun environment for their dogs to relax and play provides satisfaction to the owner and the clients who trust you.
4. Potential for high profitability: A successful dog daycare business can be very profitable, with relatively low overhead compared to other businesses.
5. Increase in Revenue Streams: A dog daycare and pet hotel can increase revenue streams by offering additional services, such as grooming or training classes.
6. Resilience in a Tough Economy: The pet industry has proven to be resilient against economic downturns. According to the American Pet Products Association, the pet industry is estimated to reach $99 billion in 2021, indicating continuing growth.
What are Common Mistakes of Owning a Doggy Daycare and Pet Hotel?
1. Underestimating start-up costs: Starting a dog daycare and pet hotel can be expensive, and one of the most common mistakes is underestimating the start-up costs. Be sure to budget for all expenses, such as rent, equipment, insurance, and staff salaries.
2. Inadequate training of staff: Ensuring the safety and well-being of dogs is crucial for any dog daycare and pet hotel. Inadequate training of staff in dog behavior and first aid can lead to injuries or illnesses to the dogs.
3. Ignoring local zoning laws and regulations: Every location may have its own zoning laws and regulations, and it's crucial to research and comply with these laws. Failure to do so can lead to costly fines or even the closure of the business.
4. Inadequate customer service: Providing good customer service is just as important as providing good care to the dogs. Inadequate customer service can lead to negative reviews and lack of repeat business.
5. Neglecting marketing: Neglecting marketing strategies is a common mistake when starting a business. Marketing is essential in building brand awareness, acquiring new customers, and increasing revenue.
6. Failing to observe and prevent the spread of diseases: Outbreaks or the spread of diseases can happen quickly, and neglecting the necessary health and safety measures can lead to a loss of credibility for the business.
7. Not having a contingency plan for emergencies: Emergencies can happen when dealing with animals, and not having a contingency plan for emergencies can result in negative outcomes.
8. Underestimating cleaning and maintenance: Doggy daycares require significant physical activity from staff. Owners who do not plan to participate in the daily upkeep and maintenance of a facility may be caught off guard when staffing levels are low, and the owner is required to do a significant share of the labor required to keep the facility clean and sanitized for the safety of the dogs.
What You Should Know?
Starting a dog daycare and pet hotel requires community cooperation. Two of the biggest concerns when starting out include zoning requirements and veterinarian referrals.
Zoning Requirements
It's important to ensure that your business complies with local zoning laws and regulations. Here are zoning considerations to keep in mind:
1. Permitted Use - Check with your local zoning authority to ensure that a dog daycare and pet hotel is permitted in the specific location you are considering. Zoning laws vary by city and state, so it's essential to research and comply with local regulations.
2. Building Codes and Safety Standards - Your business must meet local building codes and safety standards. This includes ensuring that your building has proper ventilation, lighting, and waste disposal systems. You may need to obtain permits and have your building inspected before opening your business.
3. Noise Restrictions - - Local government zoning laws may have restrictions on noise levels and hours of operation. Some cities and towns may require soundproofing of your facility to minimize noise levels.
4. Parking and Traffic - Depending on the size of your facility, there may be parking and traffic requirements that you will need to comply with. Be sure to provide ample parking and ensure that traffic flow is safe and organized.
5. Animal Welfare Laws - Your local animal welfare laws may have regulations on the number of dogs that can be kept in one facility, the type of enclosures that must be used, and the safety and sanitation requirements for your facility.
6. Community Feedback - It's important to be a good neighbor and obtain feedback from the local community. Let them know about your plans and address any concerns they may have about noise, safety, or other issues.
Veterinarian Referrals
Building a strong partnership with local veterinarians can be an effective way to increase referrals to your dog daycare and pet hotel. Here are some tips on how to get veterinarians to refer their clients to your business:
1. Establish personal relationships with local veterinarians: Build a relationship with local veterinarians by attending veterinary conferences, workshops, or even dog rescue events. Develop a professional connection by staying up-to-date on the latest medical treatments and advancements in pet care.
2. Educate veterinarians about your services: Provide informational brochures, flyers, or business cards that detail the services and benefits of your dog daycare and pet hotel. Highlight the safety measures and precautions the business takes to ensure optimal health and safety of dogs.
3. Offer Trials: Allow veterinarians to bring their pets to your facility to experience your daycare and boarding services first-hand. This will allow them to better understand and recommend your business to their clients.
4. Specialized Packages: Offer specialized packages and promotions to veterinarians or their clinics. This can help incentivize them to refer their clients to your business.
5. Provide a referral bonus: Consider providing veterinarians or veterinary clinics with a small referral bonus, such as a discounted or free stay at your facility. This can encourage them to continue referring their clients to your dog daycare and pet hotel.
6. Provide timely updates: Make sure to keep veterinarians updated on the status and well-being of their referred clients. Prompt and professional communication, along with regular updates, can help build trust and confidence in your business.
For more resources on Dog Daycare and Pet Hotels, I’ve included some recommendations below.
Books on Starting a Dog Daycare and Pet Hotel
by Rebecca Floyd, Kristen Osborne, et al.
by Braxton Walker and John Fehskens
All About Dog Daycare ... A Blueprint For Success
by Robin K. Bennett | Jan 1, 2015
How to Start Your Dog Boarding Business: What to know about dogs, kennels, and the business
by Sarah Clark | Jun 19, 2021
Software for Managing a Dog Daycare & Pet Hotel
Pet Exec
Whether small and boutique or a large facility that handles many services and pets, PetExec is here to help! We help organizations of all sizes in managing their daycare, boarding, grooming, and training operations.
Gingr
Gingr’s user-friendly dog daycare, kennel, and grooming software will modernize and streamline your pet-care business. With industry-leading performance and powerful features, Gingr works 24/7 to help pet-care professionals thrive.
Associations and Training Programs
International Boarding & Pet Services Association (IBPSA)
The IBPSA is an international association that provides education, resources, and networking opportunities for pet care services, including dog daycare providers.
Outstanding Pet Care Learning Center
https://outstandingpetcare.com/
Outstanding Pet Care Learning Center offers the most comprehensive courses available for the pet care industry.
Dog Daycare and Boarding Franchises
See Entrepreneur.com for a more detailed list of dog daycare and boarding franchises.
Franchise Under $250,000
Preppy Pet
https://preppypet.com/preppypetfranchises/
Pet Daycare, Boarding, Grooming
Startup Costs: $106K-$270K
Franchise Over $250,000
Dogtopia
Dog daycare, boarding, and spa services
Startup Costs: $688K - $1.8M
How can I get a loan to start a Dog Grooming Business?
If you want to learn who the best loan sources are, click here to read our free article, How to Start a Business and Get Startup Capital. In this article, you will learn how to get startup capital ranging from $10,000 to $350,000. (And avoid wasting your time on low-probability sources.)
To Your Success.