Build A Modern-Day Dog Care Business
By Nikki Alvin-Smith
An amazing number of people own dogs in the U.S., nearly 90 million of us according to the American Veterinary Medical Association. And given that many of us also take a vacation or leave home to go visit family out of town at least once a year, that is a lot of animals that can be in the market for boarding care.
Having someone come to your home to house sit your pets is a common method to manage their care, particularly if you have a plethora of different critters you love and care for each day. But the majority of pet owners choose to board their dog when they need to leave home, whether that be for daycare or longer stays.
The dog care business is big business. Pulling in over $60 billion dollars for pet care services in general, that includes day-care, longer-term boarding, grooming, walking and training services.
Kennel Versus Pet Boarding
Parking your dog in a kennel will likely subject it to a lot of stress from the noise and constant activities going in around it. Combined with the lack of opportunity to exercise and the confined space, it can be difficult for the dog to manage mental and physical stressors from the new environment.
Pet boarding operations offer a better option. The dog should receive one-on-one attention, plenty of exercise breaks outside and playtime options either individual set-ups or group play may be offered. As a dog boarding business owner you can expect to charge between $24-$49 per night per dog, and offering additional services can boost that revenue even further.
Items to consider are enrichment programs where you provide structured learning activities for the dog versus free play, dog training, bathing and brushing services for the dog and dog walking.
Annual business revenue streams can easily top the $1M mark for a kennel that provides adjunct services basis just basic board options. But against generated income, the expenses must be considered. And gaining repeat customers and building a good reputation through reviews is essential. And that means building your prospective business with an eye to labor costs, tax smarts with depreciation and amortization of capital expenses, insurance costs, licensing and permits, facility maintenance expenses and supplies for canine care.
The Barking Dogs
Choosing the right site for your dog business is essential. Both the topographical and geographical location on your property, but also where that property is located. There are the obvious considerations such as noise management issues and neighbors, (here are some tips on how to manage that), but as a business there are significant ways you can improve the likelihood of operating a successful enterprise by not just a good business plan at the outset but also tracking your business performance using KPI (key performance index) models to pivot and make adjustments to your operation as you go along.
Let’s Delve In Deeper
Obviously urban environments will enjoy more foot and paw traffic than rural ones. It is important to establish the metrics for your business location before investing heavily in new kennel structures and establishing a location. If however, you already have the property and can renovate an existing structure to accommodate shelter and kennel needs, runs and safely fenced doggy exercise areas, then you can always start there.
The better (meaning more professional, hygienic, well-designed and built) your canine care facility is developed, the more range in clientele you will be able to attract. But who are those clientele? And how much competition is there in your area to attract their business? And what services do they offer and where can you outshine them?
Let’s start with the segments of clientele will likely include, and bear in mind each segment will have different needs. Some will be looking for reliability and good pricing while others will want premium pet services:
Low Budget Clients -
• Senior pet owners that need help taking care of their pets
• Temporary pet care for owners under emergency care or restricted by rehabilitation from injury or requiring pet care due to an unexpected situation
Medium Budget Clients –
• Pet owners seeking day care for pets due to their busy work schedule
• Travel hobbyists who need frequent long-term care for their pets
• Owners of multiple dogs, who want animals kept together
High Budget Clients –
• Want special services for their pets with luxury attentions and amenities
• Health and nutrition aficionados, who want care for their pets based on keen attention to all aspects of the animal’s well-being
• Owners of pets that have special requirements, due to infirmity of the dog’s age or particular mental or physical health issues the pet suffers
As you can see by looking at these market segments, there are different tolerances for care of the canine and expectations that need to be managed for each client. How you choose to construct your own pet care business depend on many factors. Thes be based on your time allocation to the business; passion for the level of doggy care and level of ability to train and handle dogs; experience to manage the daily care and health needs of a myriad of different canines; financial position to provide for modern day kennel care expectations.
Don’t Skimp
The attitudes toward doggy day care and longer term pet stays in the general populace has changed as owners become more aware of the shortcomings of just parking their dog in a kennel while they are away.
The days of the cold, dark, concrete box kennel model are long gone.
And it is not just the attitudes of pet owners that have changed, but also that of staff willing to work to clean kennels and exercise/manage the animals.
An easy-clean, well-designed kennel with excellent ventilation, temperature control, security and freedom to exercise options such as covered exterior runs, is the basis for any good dog-boarding business. Not only will ownership of a modern dog kennel structure save you money on cleaning supplies, labor costs for cleaning etc. it will also attract clients and most importantly, keep the dogs themselves happy and comfortable. The #1 factor!
Customized kennel options are available in modular construction designs which makes managing the budget for a new kennel purchase very straightforward. Deals can be found at the sales lots of larger companies, where the selection in designs, color schemes and material components as well as sizes and features on tap can all be priced in a ‘to the penny’ delivered and set up cost. You can sometimes score a used kennel at a discount from larger suppliers.
Larger companies also offer financing options, which can be a boon to the business seeking a quick-set up and straightforward buying experience. Lots of resources are available to help inspire and advise the neophyte dog kennel operators too and these are well worth exploring.
A Quick Business Plan
The best way to establish a good business plan is by looking at the fundamental factors of the operation and how you can review KPI throughout the year. Considerations fall into four basic areas. These are:
• Available resources, either existing or to be obtained. These may include who your key partners may be such as local vets, having a pet transportation resource for taxi pick-up/drop-off, pet supply options and local animal trainers or groomers. And essential resource #1, the number of dog owners in your vicinity!
• Cost structure that encompasses the dog shelter structure itself; staff costs; pet supply costs; licensing fees; insurance.
• Revenue identification that includes what type of services you may offer, upselling options such as offering treats/toys and one-on-one training or pet taxi services.
• Marketing channels such as business website, local advertising, referral partnerships, social media platform management, marketing and networking opportunities/events.
As you move forward with your dog boarding business, it is important to remember that the pet owner will take as much careful management as their dog. Happy dog, happy owner, is a good place to start and finish!