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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:
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.
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:
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.
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!
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.
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:
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!
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.
Having the right staff can make or break your business. Here are some things to look for when hiring staff for dog daycare:
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.
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.
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.
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.
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.
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:
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.
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.