Dog Daycare Business Plan Template
If you want to start a Dog Daycare or expand your current Dog Daycare, you need a business plan.
The following Dog Daycare business plan template gives you the key elements to include in a winning Dog Daycare business plan.
Dog Daycare Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a licensed dog daycare business in [Location] that provides care and recreation specifically for dogs and puppies. We are dedicated to providing the best facilities for our clients. We maintain a safe and dog-friendly environment that assures our busy clients that their pets are in good hands whenever they leave them in our care. With our vast space, fun and stimulating environment, private resting areas, and professional pet caretakers, we position ourselves to be the leading dog daycare business in the [Location] area.
Services offered
[Company Name] will focus on providing dog daycare services to moderate to wealthy residents in the area. These services will include daycare, overnight accommodations, pet grooming, dog training and other specialized services.
Customer Focus
[Company Name] will primarily serve the residents within a 10-mile radius of our location. The demographics of these customers are as follows:
- 97,927 residents
- Average income of $77,700
- 68% married
- 57% in Management/Professional occupations
- 89% of residents are homeowners
- Median age: 38 years
Management Team
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been in the pet care business for the past 15 years. During this time he developed a deep understanding of the pet care industry.
[Company name] will also have an experienced operations manager who will be trained in handling the dog daycare business most of the time. The desired individual will have an undergraduate business degree and years of management experience. [Company name] will also employ certified dog trainers, experienced caretakers and veterinary technicians in case of medical emergencies.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- [Company Name] will fill a specific market niche in the growing community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly need a dog daycare business in the area
- Our location is in an affluent area with a large population of white collar professionals, who are in need of dog daycare services during the workday.
- The management team has a track record of success in the dog daycare services business.
- The local area is currently underserved and residents rely on establishments such as ours.
Financial Highlights
[Company Name] is seeking a total funding of $128,000 of debt capital to open its dog daycare business. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Dog daycare design/build: $45,000
- Equipment: $8,000
- Working capital: $75,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Topline projections over the next five years are as follows:
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | |
|---|---|---|---|---|---|
| Revenue | $1,080,000 | $2,472,768 | $2,830,825 | $3,240,728 | $3,709,986 |
| Total Expenses | $962,000 | $1,539,107 | $1,719,742 | $1,901,321 | $2,112,641 |
| EBITDA | $118,000 | $933,661 | $1,111,082 | $1,339,407 | $1,597,344 |
| Depreciation | $25,600 | $25,600 | $25,600 | $25,600 | $25,600 |
| EBIT | $92,400 | $908,061 | $1,085,482 | $1,313,807 | $1,571,744 |
| Interest | $29,946 | $26,202 | $22,459 | $18,716 | $14,973 |
| Pre Tax Income | $62,455 | $881,858 | $1,063,023 | $1,295,091 | $1,556,772 |
| Income Tax Expense | $21,859 | $308,650 | $372,058 | $453,282 | $544,870 |
| Net Income | $40,595 | $573,208 | $690,965 | $841,809 | $1,011,902 |
| Number of locations | 1 | 1 | 1 | 1 | 1 |
| Average customers/day | 20 | 22 | 23 | 25 | 27 |
| Number of orders | 3,600 | 7,776 | 8,398 | 9,070 | 9,796 |
II. Company Overview
Who is [Company Name]?
[Company Name] is a dog daycare business in [Location] that provides excellent pet care specifically for dogs and puppies. We maintain a safe and dog-friendly environment that assures our busy clients that their pets are in good hands whenever they leave them in our care. With our vast space, fun and stimulating environment, private resting areas, and professional pet caretakers, we position ourselves to be the leading dog daycare business in the [Location] area.
[Company Name]’s History
[Founder’s Name] started [Company name] in [month, year]. Driven by his love of dogs and because of the increasing number of dog owners within the city, [Founder’s name] decided to open a place where clients can bring their dogs for care and socialization while they are at work, or away on a trip. With his years of experience with dogs as a veterinary technician at a local veterinary clinic, he decided to start a dog daycare business of his own.
Since incorporation, the [Company Name] has achieved the following milestones:
- Found space and signed Letter of Intent to lease it
- Developed the company’s name, logo and website located at [website]
- Determined equipment and fixture requirements
- Began recruiting key employees
[Company Name]’s Products/Services
[Founder’s Name] provides the following services:
- Day care: Pets are supervised and cared for by the dog daycare staff for up to 10 hours per day, with scheduled play and rest times, and complete care services. Each pet will be provided a separate rest area, where they can eat and nap in comfort. Overnight accommodations are also available.
- Pet Grooming: On-site professional pet grooming services.
- Dog training: Certified dog trainers are on-site to provide customized training at the client’s request.
- Special Requests: Provide service for pets with special needs including administering medication, assisting with recovery from surgery, handicaps, etc.
III. Industry Analysis
With revenue doubling over the past decade the Pet Boarding industry is one of the few established industries to post consistently strong gains over the past decade.
Demand for pet boarding, training and walking is at an all-time high due to rising pet ownership, improved disposable income and changing consumer preferences regarding pet care. Industry revenue has grown at an annualized rate of 4.3% over the past five years. Pet parents are increasingly purchasing an ever expanding range of high-value services for their pets, contributing to industry revenue growth. Successful dog daycares remain abreast of emerging demands such as deluxe hotel suites equipped with TVs, webcams for owners, and training services, among other amenities.
Industry revenue is forecast to grow over the next five years. Increasing pet ownership will likely increase demand for services and rising per capita income will likely enable more owners to be able to afford luxury services. However, industry competition is expected to intensify as the number of establishments that offer pet-sitting services is expected to increase. Additionally, since pet sitters often host animals in their own homes or visit the pet’s home, these operators may have a lower cost structure than traditional daycare facilities.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [company location] and the immediately surrounding areas in a 10-mile radius.
The area we serve is populated mostly by affluent homeowners who lead busy professional and personal lives; as a result, they have both the need for dog daycare services and the means to pay for it.
The precise demographics of the town in which our location resides is as follows:
| Glendale | Highland | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
The Company will primarily target the following customer segments:
- Affluent Homeowners: The area in which the Company will operate has a significant population of affluent homeowners. Many families have dogs as their pets, but have obligations which take them away from home for a large portion of every day. Even homes with one parent staying at home can have a need for regular dog daycare services, especially when there are three or more children to care for.
- Affluent Renters: Many professional singles and couples who rent rather than own a home choose to drop their dogs off at dog daycares when they go away for a certain period of time. These renters tend to work long hours, and go on business trips and are not able to bring their dogs wherever they go. Not only does dog daycare ensure that their pets are well cared for, but also provide stimulation and socialization.
V. Competitive Analysis
Direct & Indirect Competitors
Pampered Paws Pet Resort
Established in 2005, Pampered Paws Pet Resort is a family owned dog boarding and daycare facility. The business has two locations, from which it offers boarding and daycare, as well as dog training and a spa service. The business actively advocates for organizations that help with dogs in need such as rescue programs and adoption homes for special needs dogs. Pampered Paws Pet Resorts offers customers peace of mind by allowing them to view their dogs throughout the day on live webcam feeds. All dogs must be up-to-date with vaccinations and be neutered/spayed. Full day play (5+ hours) costs $36 per day. Packages and additional services are available.
Le Bone Aventure
Established in 2003, Le Bone Aventure is a dog daycare, boarding, and groomer serving the entire county. The business has two locations known as Bone Homme & Bone Amie. Both locations offer separate indoor and outdoor areas for dogs by size and offer full service grooming facilities. Le Bone Aventure also offers a swim club in an outdoor temperature controlled salt water pool; pricing is dependent on owners choice of individual or group swim lessons. For customer convenience, Le Bone Aventure offers a pickup/ drop off shuttle service for a fee as well as a live stream video service. Full day care (4+ hours) costs $50 per day. Packages and additional services are available.
Waggles
Established in 1999, Waggles is a dog daycare, boarding, and training facility. The business operates from two locations. It also offers an online training option for customers via the online portal, where owners may access report cards, make reservations view webcams, and sign up for classes. The premises are staffed 24/7 with certified trainers. Full day care (5+ hours) costs $48 per day. Packages, training services, and upgrades are available.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Client-oriented service: [Company Name] will have a full-time sales manager to keep in contact with clients and answer their everyday questions. [Founder’s Name] realizes the importance of clients having accessibility to their pets. Therefore, it provides periodic check-in texts, and clients may watch a live feed of play and/or rest periods at any time.
- Management: [Founder’s Name] has been extremely successful working in the dog services business and will be able to use his previous experience to assure clients of the care that [Company Name] will take to do the job right. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name’s] competitors.
- Relationships: Having lived in the community for 25 years, [Founder’s Name] knows many of the local leaders, newspapers and other influencers. Furthermore, he will be able to draw from his ties to pet owners from his work at the veterinary clinic to develop an initial client base.
VI. Marketing Plan
The [Company Name] Brand
The [Company name] brand will focus on the Company’s unique value proposition:
- Client-focused dog daycare services, that treat each pet individually with excellent care
- Superior, customized service built on long-term relationships
- Proven track record and expertise in the industry
Promotions Strategy
Referrals
[Company Name] understands that the best promotion comes from satisfied customers. The Company will encourage its customers to refer their friends and neighbors by providing a referral discount each time a new client schedules and pays for the first day of care. This strategy will increase in effectiveness as the business grows.
Internet
[Company Name] will invest resources in two forms of geographically-focused internet promotion—organic search engine optimization and pay-per-click advertising. The Company will develop its website in such a manner as to direct as much traffic from search engines as possible. Additionally, it will use highly-focused, specific keywords to draw traffic to its website, where potential clients will find a content-rich site that presents [Company Name] as the trustworthy, well-qualified dog daycare business that it is.
Publications
[Company name] will place print advertisements in key local publications, including newspapers, area magazines, and local event booklets. Additionally, the Company will print brochures and place them in specific locations frequented by target individuals, such as supermarkets, pet stores, and veterinary offices.
Pricing Strategy
[Company Name]’s pricing will be competitive compared with [Competitor] and lower than [Other competitor], although higher than independent pet sitters. For regular, weekly clients, package pricing will be available. For one-time clients, or clients who are trying out the firm’s services, a competitive hourly rate will be charged.
VII. Operations Plan
[Company Name] will book appointments via the internet and call-ins during business hours. Dog daycare services will be available 6 days a week from 7am until 7pm. Boarding services are round-the-clock, with check-in and check-out between the hours of 7am and 7pm.
[Founder’s Name] will work as the primary salesperson for the company’s services, although the assistant manager and administrative assistant may be trained in sales activities over time. The assistant manager will manage company operations, under [Founder’s Name]’s supervision. The administrative assistant will handle basic scheduling work for the assistant manager, as well as light bookkeeping, answering phones, and organizing human resources.
Milestones
[Company Name]’s long term goal is to become the highest quality provider of dog daycare services in the [city] area. We seek to do this by ensuring customer satisfaction and maintaining a safe and stimulating environment where dogs are happy.
The following are a series of steps that will lead to this long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Launch [Company Name] |
| [Date 5] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been in the pet care business for the past 15 years. He has spent much of his career working as a veterinary technician at a local veterinary clinic. During this time, he witnessed firsthand successes and failures in animal care operations and service quality, while developing deep expertise.
[Company name] will also employ an experienced assistant manager to manage admin operations. This will be an experienced operations manager who will be trained in handling the dog daycare business most of the time. The desired individual will have an undergraduate business degree or years of office or clinic operations management experience. [Company name] will also employ certified dog trainers, experienced caretakers and a veterinary technician.
Hiring Plan
In order to launch the business we will hire the following employees:
- Pet caretakers: 9 full-time, experienced caretakers. Must be well-rounded on animal care with previous experience in monitoring playtime and managing canine behavior. Caretakers will be added consistently to fill the growing need for [Company Name] services.
- Administrative Assistant: Must be organized, with good phone skills, facility with numbers for bookkeeping, and good writing skills.
- Daycare Manager: Will be in charge of the day-to-day operations and all employees
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from dog daycare services.
As with most services, labor expenses are the key cost drivers. Pet caretakers and dog trainers will earn a competitive salary, allowing [Company Name] to hire workers who have a reliable experience. Furthermore, the costs of supplies are expected to be roughly 20% of revenue.
The major cost drivers for the company’s operation will consist of:
- Salaries
- Cost of supplies
- Facility lease
Ongoing marketing expenditures are also notable cost drivers for [Company Name].
Capital Requirements and Use of Funds
[Company Name] is seeking a total funding of $128,000 of debt capital to open its dog daycare business. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Dog daycare design/build: $45,000
- Equipment: $8,000
- Working capital: $75,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model.
| Number of customers per day | |
|---|---|
| FY 1 | 25 |
| FY 2 | 35 |
| FY 3 | 45 |
| FY 4 | 55 |
| FY 5 | 75 |
| Annual Lease (per location) | $50,000 |
| Yearly Lease Increase % | 2.50% |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
