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by MoeGo on Mar 25, 2025 2:39:35 PM
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Why Start a Dog Daycare Business?
So, you love dogs and are thinking about how to open a dog daycare business? Maybe you’ve been walking dogs as a side gig, or maybe you enjoy dog-sitting more than you expected. Whatever your motivation, you’ve been inspired to start your own business doing something you love. Well, we are here to help answer some of the questions you may have about starting a dog daycare business.
Starting any business can be challenging, and according to the U.S. Bureau of Labor Statistics, 1 in 5 small businesses fail within the first year and half fail within five years. But when you look deeper into the pet care industry, there is good news, especially for dog daycare operations. According to a recent Forbes study on pet ownership statistics in the U.S., a dog daycare business shows strong potential. For instance:
- Dogs are the most popular pet (65 million households).
- Owners spend more $1,500 annually on their dogs (food, vet, treats, grooming, insurance), not including dog day care.
- Dog owners who use dog daycare twice a week spend nearly $3,000 per year on daycare services.
- Dog owners who use dog daycare spend between 3%-5% of their household budget (based on median household income) on daycare services.
The bottom line is that people love their dogs and are willing to spend money on them. In this article, we will look at the ins/outs of how to start a dog daycare business and what you need to know and consider before taking the plunge into opening your own dog daycare.
Essential Steps to Start Your Dog Daycare Business
Step 1: Research the Dog Daycare Market
While the numbers and statistics above may look promising, successfully opening a pet daycare business depends on your local market. If your local area presents a huge opportunity, it’s likely that other pet care and pet supply stores may already be located there or building a facility. Don’t be discouraged. That’s a good sign, because national businesses have already done market research and know your local area is a great place to be and there’s probably room for more. Here are some questions to answer as you are wondering how to open your own dog daycare business:
- Are there lots of dog owners in your area?
- Are there other pet daycare operations close by? Veterinarians? Pet supply stores?
- If there are dog daycares nearby, are they national franchises or standalone, mom/pop operations?
- Are there dog parks nearby?
- Do you have the financial resources to operate for a year+ without making a profit?
- Can you properly staff an operation that potentially requires 24/7/365 staffing?
- Have you identified a permitted location for a dog daycare operation that is conveniently accessible for owners? (Bear in mind the average dog owner is willing to drive up to 5 or 6 miles to your location.)
The goal is to understand the local demand and what, if any, competitors are close to your location.
Identify any unique opportunities in your area. Again, if a national pet supply store is opening nearby, it’s an indicator that there are lots of pet owners in the area. Also, many larger businesses and corporations are requiring employees to work more in the office rather than from home. This means more dog owners will need a daycare solution as they return to the office.
Identify your target audience. While “dog owners” are the low hanging fruit, try and separate this broad audience into different segments, such as young professionals, retirees, select neighborhoods, nearby businesses with lots of employees who probably own dogs. Knowing these customer types will help you figure out how and where to spend advertising dollars and the messaging you put in your marketing materials.
Lastly, research online classes and certifications for dog daycare ownership. The more you know, the better your decisions will be and the more likely you will succeed.
Step 2: Develop a Business Plan
An accurate, thorough business plan is key to your success. Whether you’re using your own money, intend to get a loan, or however you’re funding the operation, all parties involved will need to know what it’s going to cost, how much revenue you need to make, and ensure you have all the bases covered when it comes to a basic P & L (profit and loss). This is what a business plan will accomplish.
And don’t be discouraged if you’re not a “numbers” person or don’t have the foggiest idea of how to read a spreadsheet. A simple business plan isn’t difficult, but it does take precision and attention to detail. There are many online tools to help guide you through the process of writing a business plan, including templates or organizers. Your business plan will include some information from your earlier research, such as competitive analysis.
First, set reasonable financial goals. Don’t plan on getting rich. Rather, manage expectations so that you can break even within a few months or a year and grow your business from there.
Second, create a budget. Online tools can help you with this, but it’s basically adding up all the costs involved with starting a new business – facilities and physical upgrades, staff, equipment, licenses/permits, marketing and advertising for a soft launch and grand opening. Then, identify which costs are ongoing, such as rent, payroll, utilities, cleaning supplies, and ongoing marketing/advertising (your list will be way more comprehensive!). If you need financial support, consider exploring MoeGo Capital, which offers tailored loan solutions to help you cover startup costs and manage cash flow.
Next, figure out how many customers you need and how much you can reasonably charge in order to pay for your start-up/launch (hard) costs and ongoing costs for several months. This is where you set monthly goals. You will likely not be profitable in your first month or even six months or a year (remember you need to recover your hard costs). Don’t forget to account for customer “melt”, which are the customers who use your services for a month or two and then leave for whatever reason. You should also bake in the cost for acquiring each customer, such as advertising, printing flyers, discounts for new clients and any other promotions you come up with.
Lastly, a good business plan has a unique value proposition. What do you have that’s going to set you apart? What makes your business special? Perhaps there are services you can add to your daycare business, like certified training and/or grooming. Maybe it’s your location? Maybe you make house calls to “retrieve” dogs at home or at a large office complex, or you are open around the clock for people who work second and third shifts. Get creative!
Step 3: Meet Legal and Regulatory Requirements
Licenses and permits are required for dog daycare businesses, and these vary by state and the municipality in which you’re running your business. You will need a standard business license to operate just like any business. But you and your employees may need specific licenses and permits for dog daycare. You will also need to prepare for and pass inspections for sanitation and safety requirements. Check with local and state government websites for more information on these dog daycare requirements, as well as local zoning laws and animal welfare regulations.
Also, while meeting legal and regulatory requirements is mandatory, you should consider having additional certifications for you and your staff, such as safety training like CPR or a veterinary technician. Also, have an evacuation plan and protocol for disasters and emergencies, which is not only smart but a key selling point for potential customers.
Step 4: Find the Perfect Location
There are a few things to consider when choosing a location for your new dog daycare business. Assuming you’ve done some research on zoning, you should be able to start looking for the ideal location. Let’s also assume the area you’re in has plenty of potential customers. Here are some parameters to consider:
- Convenience: Dogs won’t care that much about where they are as long as they feel safe and have something to chew on. But dog owners care a LOT. Your location should be easy to find and have easy access to drop off and collect their dogs.
- Size: Dogs need to run around. While you don’t need a football field-size facility, you need enough space for dogs to play with each other, to be alone, and to rest. But remember, it’s not all about size. You need enough space for the number of dogs you will safely care for. It’s a selling point that you have a staff-to-dog ratio that’s relatively low.
- Outdoor option: If your climate allows, having an outdoor option for dogs, ideally with shade, is another key selling point.
- Dividers/Organizers: Having areas to separate larger dogs from smaller dogs is a plus. “Predatory drift” is real and can be dangerous to dogs and your staff when one dog or staffer is suddenly seen as prey by the pack. Also, being able to divide dogs by temperament, size, and age is helpful.
- Emergency systems: Your location must be compliant with all fire safety regulations. Make sure that any building you’re considering won’t cost a lot to bring it up to code.
If you’re considering how to start a dog daycare at home, there are many other considerations, such as zoning in your neighborhood and if your home can safely accommodate multiple dogs and pass inspections.
Lastly, whether your daycare business is in a strip mall, standalone building, or your own home, the space should be as stress-free as possible. A happy dog means a happy staff and happy owner!
Step 5: Acquire Essential Equipment and Software
One benefit of opening a dog daycare business is that you don’t have to spend a lot of money on office furniture. Besides an open space, you’ll need kennels, toys, treats, and lots and lots of cleaning supplies and trash cans. To set your new business apart from others, consider getting a playground agility kit and/or a modular play system.
Another critical must-have is the right software. Having specialized dog daycare software for scheduling, communication and management will make your business run more smoothly, save money, and elevate the experience for your customers. Software solutions like MoeGo’s Smart Schedule™ and pet daycare software are game-changers for your new business. Check out the story of Pampered Tails and how MoeGo provided the game-changing support they needed.
Lastly, a video system to stream and store all activities at your dog daycare can be helpful in many ways. First, you have video documentation if there is an emergency, like a dog fight (fights will happen). You can show video evidence to dog owners should you have to ban a dog from your daycare or take an animal to a veterinarian. Second, it’s a huge selling point if dog owners can log in via an app and see a livestream of their dog and the wonderful care you’re giving them.
Step 6: Build a Strong Team
Having the right staff can make or break your business. Here are some things to look for when hiring staff for dog daycare:
- Dog lover: Yeah, it’s kind of an important part of the job.
- Compassionate: Dogs aren’t always happy and loveable. They require patience and understanding.
- Observant: Just like with daycare for kids, your staff cannot have their eyes buried in their phones. Most negative or dangerous situations can be avoided if a staffer observes dog behavior going sideways and deals with it quickly.
- Friendly and approachable: Your customers treat their dogs as family members. Your staff should have the people skills to make your customers feel comfortable leaving their beloved pets in your care. And the dogs will pick up on their friendliness as well!
- Experienced: Hiring a dog owner is a plus, because they have some experience with animals. But more experience in how to handle multiple dogs of different breeds is helpful. An experienced employee may also have additional training and grooming certifications, which may allow you to offer more services.
- Available: A day care business requires people to be there when they are scheduled to be there. Insist on punctuality, consistency, and good communication. Otherwise, you’ll be scrambling to find help when you need it the most.
- Willing to Learn: We encourage you to have a training plan for new personnel. This includes training in animal behavior, emergency procedures, first aid, and how to deal with various situations, such as fighting dogs. And be prepared to reward them if they bring assets to your business, like being certified in dog training.
Remember that one of the costliest and most stressful aspects of business ownership is staff turnover. Take the time to hire right the first time. Learn more about how to build a strong team from one of our partners, Platinum Paws.
Step 7: Establish Rules and Policies
As the owner of a dog daycare business, you should have your own rules and policies that extend across your business. For instance, establish a new client policy that includes proof of vaccination, a negative fecal float, a “safe” word for pickup, and potentially micro-chipping and a neuter/spay requirement policy. Also, have an evaluation process for the dogs of new customers, which would include introducing their dog to other dogs without human interaction.
For your staff and the satisfaction of your customers, you should have dog-friendly processes, such as non-aggressive discipline techniques (no spray bottles!).
It is also recommended that you set clear boundaries with your clients and their pets. Have a policy for behavior expectations, fighting, late pickups, and owners with sick dogs. Use MoeGo’s agreement feature to streamline this process—request customers to sign essential agreements (e.g., no-show agreements, service agreements, or matted release forms) when they request an online booking. This ensures all terms are clear upfront and helps avoid misunderstandings. Whatever documentation you can provide a new client up front will alleviate tough resolutions when situations arise.
Lastly, have emergency protocols in place. Should a dog be injured or escape or worse, have the right procedures in writing and immediately available for your staff. Have a partnership with one or more local veterinarians. Establish clear measures should there be a fire or other emergency that requires evacuation of animals.
Step 8: Pricing Strategies for Dog Daycare Services
For service-based businesses, your local market will determine how much you can charge for the services you provide. Search what other dog daycare providers are charging. Drive by locations and get a sense of how many dogs they care for daily. Walk into locations as a potential customer to see what a daycare offers for the fees they charge.
This is actually work you may have done for your business plan to determine how many dogs you need to care for daily and at what cost in order to pay your bills, staff, and (ideally) yourself, i.e., profitability. Now, it’s up to you to come up with other pricing strategies to drive new customers, keep existing customers and increase the average value per customer (the amount of money each customer generates for your business).
Tactics you should consider include package deals, like booking 5 days to get one day free. Or for households with multiple dogs, offer a 50% discount on the second dog. Memberships and loyalty programs are great ways to ensure ongoing business from a customer. With MoeGo’s membership feature, you can easily create and manage customizable membership plans, offering perks like discounted rates or exclusive services to keep clients coming back. Finally, you can offer discounts for new clients and other situations, but discounts aren’t recommended up front, as they generate less revenue and can devalue the perception of your business.
Step 9: Marketing Your Dog Daycare Business
Getting the word out about your new dog daycare business is paramount. Fortunately, there are a variety of ways to market your business that won’t break the bank.
- Website: Launching your own website is the cornerstone of a strong digital footprint. There are numerous, easy-to-use online tools that are inexpensive that allow you to build and manage a website on your own. Or you can simply use a Facebook page. The point is that you have an online destination to drive potential customers to. With MoeGo’s online booking system, you can jumpstart an online storefront to showcase your business and make your pawsome services accessible 24/7. This not only enhances convenience for your clients but also helps streamline bookings and grow your business effortlessly.
- Social media: Create a page for your business on all social channels, including Facebook, Instagram, Yelp, X, Twitter, and video sharing platforms. Post often, grow your followers, and you’ll reap the benefits of it. If they are willing, have your staff post on their social media as well with hashtags with your business’s name. Learn how Bark Avenue is utilizing its social channels with 10 social media best practices.
- SEO: Search Engine Optimization will highlight your business in search engine results. Anything you do within your digital ecosystem will help enhance your online search presence, like posting videos and updating content on your website.
- Advertising: Online and print advertising can be critical assets if you’re committed to using them regularly. One-time “blasts” are largely ineffective. Some of the best performing local channels include direct marketing (mailers), email marketing, flyers and print advertising in local magazines. Use a QR code to drive people to your digital home.
- Online ad buys on Facebook and Instagram allow you to target specific audiences cost-effectively. MoeGo’s marketing features allows you to capture, organize, and convert leads from all your channels into paying customers, so that you never miss an opportunity to turn interest into revenue.
- Other marketing tactics include client referrals, contests, sponsorships, sign-up deals (like a BOGO), partnerships with other pet-centric businesses, and more.
It’s also about getting out there and promoting your business! Local television often spotlights new businesses. Post videos on your own social media. Ask your friends to help promote your business. Don’t be afraid to put flyers on car windshields outside the local pet supply store. “What if” is the best question you can ask, so use your imagination! It will pay off.
Step 10: Deliver Exceptional Client and Pet Experiences
Congratulations! Your business is up and running and dogs and their owners love you. Now it’s time to really “surprise and delight” your clients and take your dog daycare to new heights. Here are some ideas and tips to really get them barking your name.
Treat them like one of the family. Know every dog’s name for sure, but also the names of their owners and their family. You can also take personalization to the next level with MoeGo software. You can store client preferences, their pet’s information, service history and create customized communications with your clients all in a fun, user-friendly app.
Daycare is just the beginning. Offer additional services when your business can accommodate it. This could include:
- Self-serve dog washing stations
- Overnight and extended stays (for vacations)
- Dog grooming
- Dog training (classes and private lessons)
- Limited onsite veterinary services
- Loyalty rewards and birthday gifts for dogs
MoeGo also has a convenient app to assist your customers for bookings, reminders, and updates.
Anything you can do to exceed a customer’s expectation is a win. This will keep them coming back to you, referring you to new clients, and giving you positive reviews.
Conclusion: Your Path to Dog Daycare Success
Starting a dog daycare business is hard work. It’s even harder in a service-oriented space in which you’ve been entrusted to care for a loved one. Your clients rely on you and your team for their pet’s safety and happiness. We recognize this responsibility as much as you do and take pride in being able to help with your success.
The MoeGo team is here to assist you in your pursuit of your dream of owning a dog daycare business, from marketing and streamlining your operation to managing your staff, clients, and billing. We take pride in providing all the software tools you need to start your business, so that you can do what you love and thrive.
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