Dog Kennel Business Plan Template
If you want to start a Dog Kennel business or expand your current Dog Kennel business, you need a business plan.
The following Dog Kennel business plan template gives you the key elements to include in a winning Dog Kennel business plan.
Dog Kennel Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a licensed dog kennel business in [Location] that provides excellent pet care specifically to dogs and puppies. We are dedicated to providing the best facilities and treatment 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, high-quality accommodations, premium products, specialized services, and professional pet caretakers, we position ourselves to be the leading dog kennel business in the [Location] area.
Services offered
[Company Name] will focus on providing dog kennel 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 Mgt./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 kennel 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 an on-call veterinarian 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 kennel business in the area
- Our location is in a high-wealth area where customers are in need of dog kennel services.
- The management team has a track record of success in the dog kennel 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 $222,000 of debt capital to open its dog kennel 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 kennel design/build: $122,000
- Working capital: $100,000 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 kennel 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, high-quality accommodations, premium products, specialized services, and professional pet caretakers, we position ourselves to be the leading dog kennel business in the [Location] area.
[Company Name]’s History
[Founder’s Name] started [Company name] in [month, year]. Driven by his passion for dogs and because of the increasing number of dog lovers within the city, [Founder’s name] decided to open a place where clients can bring their dogs for day/overnight care while they are away for work, business, or personal trips. With his years of experience with dogs as an assistant to a local veterinary clinic, he decided to start a dog kennel 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] will be able to provide clients with the following services:
- Day/Overnight care: Pets can be taken care of by the dog kennel staff for up to 24 hours with complete accommodation and care services. Each pet will be housed in separate kennels depending on the client’s request. An arrangement for accommodations longer than a day can also be made.
- Pet Grooming: On-site professional pet grooming services.
- Dog training: Certified dog trainers provide courses for the client’s pets specialized according to their needs.
- 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 next five years. Pet parents have been purchasing a greater range of high-value services for their pets, contributing to industry revenue growth. Furthermore, industry operators have expanded their services to capture additional revenue. Pet boarders have also introduced deluxe hotel suites equipped with TVs, webcams for owners and training services, among other amenities.
Industry revenue is forecast to grow at an annualized rate 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 pet boarding 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 moderate to wealthy homeowners and lead busy lifestyles; as a result, they have both the need for dog kennel 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:
- Moderate to Wealthy Homeowners: The area in which the Company will operate has a significant population of homeowners. Many homes have dogs as their pets with limited time to keep up with pet grooming. Even homes with one parent staying at home can have a need for regular dog kennel services from time to time, especially when there are three or more children to care for.
- Wealthy Renters: Many wealthy singles and couples choose to check-in their dogs to dog kennels when they go away for a certain period of time to make sure that their pets are well taken care of. These wealthy renters tend to work long hours at consulting companies, banks, and financial services, and go on business trips and are not able to bring their dogs wherever they go.
V. Competitive Analysis
Direct & Indirect Competitors
Doggie Camp
Started in 2000 Doggie Camp began as a way to offer high-quality pet care service for the founder’s two dogs. After opening two locations, the company began to franchise in 2003 and now has an estimated 190 franchises and company-owned establishments in the United States.
Doggie Day Camp offers dog day care, boarding, training, grooming and walking, as well as in-home pet care and poop-scooping services. Day care services include all-day playtime in indoor climate-controlled environments as well as outdoor areas. For the company’s boarding services, dogs have individual cabins with fleece padding and all-day playtime. Staff members are trained in dog behavior, pet first aid and CPR. Additionally, the facilities are monitored 24 hours a day, seven days a week and owners have the ability to check in with their dogs using webcams.
Pet Resort
Established in 2006, Pet Resort is a veterinary owned and designed pet boarding facility. The company provides boarding, with a large selection of a la cart activities, Grooming, Training, Transportation and, in home daily walks. It also offers transportation to and from vet visits grooming appointments, as well as dog food delivery. Their services include: Dog Boarding, Cat Boarding, Doggie Daycare, Transport, Grooming and Training.
Best Friends Pet Lodge
Best Friends Pet Lodge is one of the leading boarding and grooming providers in the United States. Best Friends operates 52 centers in 20 states. The company offers luxury pet boarding services and each suite is complete with lamb’s wool bedding. Customers also have the option of purchasing training services and daily playtime for their pets with certified Doggy Day Camp counselors. Some of the company’s locations even let owners view their pets via webcam.
In addition to boarding, the company also offers bathing and grooming services for dogs and cats, which include shampoos, haircuts, flea treatment, styling, pedicures, pad and foot care and cologne. Training classes for dogs of all ages are also offered and can be purchased as part of the boarding service.
Competitive Pricing
| Daily daycare rate | Overnight Fee | Grooming | |
|---|---|---|---|
| Doggie Camp | $35 | $85 | $45 |
| Pet Resort | $40 | $80 | $40 |
| Best Friends Pet Lodge | $45 | $90 | $47 |
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 accessibility to his clients, and will further keep in touch with his clients through weekly newsletters about dog kennel services.
- 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 influences. Furthermore, he will be able to draw from his ties to homeowners 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 kennel 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 clients to refer their friends and neighbors by providing discounts for new client produced. This strategy will increase in effectiveness after the business has already been established.
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 kennel business that it is.
Publications
[Company name] will place print advertisements in key local publications, including newspapers, area magazines, and local sport programs. Additionally, the Company will print brochures and place them in specific locations frequented by target individuals, such as supermarkets and real estate offices.
Pricing Strategy
[Company Name]’s pricing will be competitive compared with [Competitor] and lower than [Other competitor], although higher than independent pet kennels. For regular, weekly clients, pricing will be based on the average labor needed for a job and a steady fee will be set. 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 kennel services will be available 7 days a week scheduled within time ranges (i.e. 10 am – 4 pm Wednesday) rather than at exact times to allow leeway for jobs that may be longer or shorter than expected. After clients are served a number of times, appointments will be scheduled more tightly together based on the average service time for each client.
[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 kennel services in the [city] area. We seek to do this by ensuring customer satisfaction and developing a loyal and successful clientele.
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 with a local veterinary clinic, where he assisted in all the clinic’s operations. 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 kennel 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 an on-call veterinarian in case of medical emergencies.
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. 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.
- Kennel 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 kennel 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
- Lease on company
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 $222,000 of debt capital to open its dog kennel 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 kennel design/build: $122,000
- Working capital: $100,000 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 | |
| PRETAX 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 |
