Dog Boarding Business Start-up Costs

While starting a dog boarding business is a dream for many passionate dog lovers, there are some logistics to consider—and perhaps the most important of all is the start-up costs. 

Starting any business comes with start-up costs that have to be incurred before getting up and running. Keep reading to learn about all the dog boarding business start-up costs you can expect when first starting out.

What are start-up costs?

The initial expenses incurred when launching a new business are known as start-up costs. These costs may include one-time expenses (buying a facility or equipment, etc.) or recurring expenses (business software, staffing, advertising, etc.). 

Properly estimating and being able to deal with these costs is important for the long-term success of the business, and may mean that the business isn’t instantly profitable. For dog boarding businesses, this is no different. 

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6 Dog boarding business start-up costs.

There are six specific considerations you should take into account as you begin to build out a dog boarding or dog daycare business. 

1. Facility.

The dog boarding facility is likely to be one of the largest investments when starting a dog boarding business and one of the most important. The facility is where you’ll house the dogs and conduct all kennel business transactions, and there are a few things to think about such as:

• Location: Where is the business going to be? Think about proximity to target clients as well as zoning regulations that may come into play.
• Size and layout: Because you’ll be housing dogs, you’ll likely need a facility of an adequate size, and will also have to consider the layout for sleeping areas, play areas, storage, and a reception at minimum.
• Renovations: Once you’ve bought or rented a property, you may have to consider renovations to make it suitable for dogs. 

The dog boarding facility may be a one-time expense or it may be recurring, depending on your budget. Buying a facility outright is expensive, so the majority of kennel business owners will lease or rent rather than buy one outright. 

2. Equipment.

Equipment is also an important consideration for a dog boarding facility, as dogs need a safe space to live as well as feeding supplies, toys, bedding, pet grooming equipment, and any enrichment and exercise equipment to keep them happy. 

Equipment will also include kennels and crates to keep dogs safe at night (unless you plan to operate a cage-free facility, as some dog boarding businesses do choose to do). 

You should also consider cleaning supplies on hand, as dog boarding can get messy due to accidents, food spills, and all else that comes with housing dogs. 

Most dog boarding businesses will turn to wholesale suppliers, who can get them all of these things at a cheaper price than buying them from regular businesses. Wholesale suppliers work directly with brands and allow you to buy food, pet grooming equipment, and more in bulk for a better deal.

When shopping with a wholesale supplier, make sure to compare prices to ensure you’re getting the best deal, as well as looking at a few suppliers to determine the range of equipment they have. 

3. Licensing and permits.

Obtaining the necessary license and permits ensures that the dog kennel business is operating legally and adheres to local regulations and standards, which may vary by state and even city or town. 

The first requirement is usually a general business license, which grants the ability to conduct legal business within a specific location. This is often issued by the city or county in which the business is located. 

An animal boarding license is also usually required. The specifics of this also vary by area but generally, you need to have permission to board more than a couple of animals, so making sure this is in place before you start taking bookings is crucial to the success of the business.

Health and safety permits are also essential for dog boarding. These permits confirm that the facility is complying with local health codes, covering sanitation, ventilation, and overall health and safety standards. This is important not just for the well-being of the dogs, but the staff and visitors too.

Business insurance also protects both the business and you from any problems. It protects the business from losses that might occur, such as accidents, lawsuits, etc. 

The process of getting all of these licenses and permits together usually involves applications to and visits from local agencies such as health departments and animal control. It can be advantageous to consult with a legal advisor during this process to make sure everything is in place and you don’t have any hiccups along the way. 

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4. Staffing.

Like any other business, staffing is a major recurring cost to consider when it comes to dog boarding. Some key staffing roles might include:

• Caregivers: These attendants watch over the dogs, making sure they’re fed, watered, and happy. They should at least be trained in first aid and how to read dog body language so they can offset any problems before they begin during pet boarding and attend to any stressed-out dogs.
• Trainers: If your facility offers dog training, hiring qualified trainers is important. Dog training is a skill that takes a lot of experience and learning, so making sure whoever you’ve hired has that skill behind them is crucial for success and the well-being of the dogs in your care.
• Administrative staff: Other staff can handle the running of the business, including taking and booking appointments, communicating with dog owners, and dealing with the financial side of things. Using pet business management software, like PetExec, can also help out with tasks, reducing the cost and strain on staff. 

You may decide to hire other staff for your kennel business, such as a human resources department, payroll, dedicated customer service department, or cleaning personnel, but this is up to you and your budget. 

A start-up kennel business often has people covering multiple roles in the beginning before they turn a profit, so examining what you have the budget for and ensuring your staff isn’t overworked is key.

Some dog boarding businesses also choose to have a vet tech on staff so they can quickly deal with any medical issues in the interim before the dog sees a vet. 

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5. Marketing and advertising.

In 2024, marketing and advertising are the keys to the success of any kennel business. Word of mouth can’t solely be relied upon anymore. 82% of companies have a content marketing strategy, so without putting work into your own marketing, you may fall behind competitors.

Here are a few categories to consider when it comes to marketing a pet boarding business.

Website development.

A professional, user-friendly website can be at the center of your marketing strategy. The website is the first point of contact for many dog owners, and having one that’s easy to navigate and visually appealing will do wonders for drawing people in. 

You can also showcase testimonials and reviews and detail all the services your business offers.

Search Engine Optimization (SEO).

SEO is what will bring people to your website, and should be part of your content marketing strategy. Optimize blogs about dog boarding and web copy to rank highly on Google (or hire an agency to do it for you, if it’s in the budget). 

Create a Google My Business profile and ensure all contact details are accurate to become more visible to potential clients and build trust with Google for your kennel business.

Social media marketing.

Platforms like Facebook, Instagram, and TikTok allow you to draw dog owners in, showcase your personality and brand voice, and share updates quickly with potential clients. 

77% of businesses use social media to reach out to customers, so it’s another area where you might lose out to the competition if you don’t stay engaged.

Online paid advertising.

While online ads have fallen a bit behind SEO in their effectiveness, they still have their place in boosting traffic to your website. Dedicating part of your marketing budget to them can boost engagement and bring even more potential pet owners to your business. 

6. Management software.

At the end of the day, you and your staff are only human, so getting some management software to help you out with your pet boarding facility can make all the difference. 

The best management software should be able to offer your kennel business:

• Contract signing and management: It can handle and store contracts signed with both staff and pet owners bringing their dogs to you.
• Bookings and payments: Take the stress out of keeping up with bookings and payments by having the software manage it for you.
• Employee management: It should be able to manage employees as well as clients, keeping track of time cards, schedules, and more.
• Email and SMS marketing: Create and schedule email and SMS content to send to clients, encouraging them to come back to your facility and offering deals on occasion.
• Camera integration: Keeping an eye on the dogs with cameras that integrate with the software means you can quickly intervene where necessary, and even allow pet owners to view the cameras remotely.

Although getting to know a new management software can seem daunting, any good software will offer a demo and be seamless in drawing users in and making their work easier, not harder. 

PetExec offers all of these amazing features and more. Book a demo with us today to see how we can help you build your dog kennel business!

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Business start-up costs template.

Using a free business start-up costs template can be helpful in keeping track of everything you need. You can always make edits later if something is unexpectedly less or more expensive.

Keeping records and staying on top of everything you’re spending will allow you to make adjustments where necessary.

Tax deductions and start-up costs.

Many start-up costs for a pet boarding business are tax deductible, such as business registration fees, initial advertising costs, training costs, and professional fees for legal advice. 

The IRS allows businesses to deduct up to $5,000 of start-up costs in the first year of operation. Any amount over that must be amortized over 15 years. For example, capital expenses are typically not fully deductible in the year they are incurred but can be depreciated over time. 

If your total start-up costs for your pet boarding business exceed $50,000, the $5,000 deduction is reduced dollar-for-dollar by the amount your start-up costs exceed $50,000. For example, if your start-up costs are $53,000, your immediate deduction would be reduced to $2,000.

Talking to a tax professional can help you to maximize the deductions.

Many kennel business owners are then led to the question, can you deduct start-up costs with no income? The answer is yes: the same IRS rules still apply even if you don’t have an income from the business yet. 

If your business has no income and a net loss in the first year due to start-up costs and other expenses, you may have a Net Operating Loss (NOL). You can carry this NOL forward to offset future taxable income, reducing your tax liability in profitable years.

Final thoughts.

Start-up costs for a dog boarding business can be a lot, especially when you see the numbers stacked together, but a good business plan will pay off—especially with the right management software to help you when you get up and running.

PetExec’s management software can help you with your staff, clients, customer service, wholesale inventory, and keeping an eye on the dogs in your care. 

If you’re starting a dog boarding business and need that helping hand, check out a free demo. 

Commonly asked questions. 

How much does a dog boarding business make a year?

How much a dog boarding business will make in a year depends heavily on a few things, including location, number of clients, ROI, and more. When setting your goals for how much profit you want to make, it’s important to consider all of these things, make smart decisions, and be realistic. 

How to start a dog boarding business?

Starting a dog boarding business involves getting your plan together, performing market research, creating a budget, writing a business plan, and addressing legal requirements. If you do all of these things with care, you will be able to find the necessary staff and begin running your business.