How Much Does It Cost to Start a Doggy Daycare?

There are 65.1 million dog owners in the US. For those looking to start a pet business, that’s a huge number of people potentially looking for care, meaning a lucrative company might lie ahead for you!

However, businesses always cost money before they make money. That’s why you need to consider how much it costs to start a doggy daycare before taking the leap and starting a new business.

What are start-up costs?

Start-up costs are what business owners need to pay toward their businesses to get them off the ground—even before it’s turning a profit. 

Some of these costs may be one-time expenses like licensing fees, setting up kennels and equipment, etc. Other costs might be recurring—such as paying staff wages, business software, cleaning supplies, etc.

It’s important to consider all your start-up costs when first starting out so you know exactly what it will take to get your business up and running. 

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How much does it cost to start a doggy daycare?

When you are starting a dog daycare business there are 3 different types of start-up costs to consider. 

1. Initial set-up costs.

The initial set-up costs are what you’ll need to pay to get your business off the ground. These may include:

• Facility: Every dog daycare business needs a location to house the pups. This means buying, renting, or leasing a place where you can conduct your business, which might end up being a one-time or recurring expense. The size of the property will impact the cost. Ensure the property is zoned for commercial use and permits a dog daycare operation.
• Renovations: Chances are, you’re going to have to renovate the place to make it safe for the pups in your care. Install non-slip flooring, secure fencing, proper ventilation, and temperature control systems.
• Equipment: You’ll need certain equipment for your dog daycare business. This might include a dog run, and doggy pools to keep them entertained.  For separation and overnight stays, ensure you have kennels of various sizes to accommodate different breeds. You may also want agility equipment, enrichment games, and anything else to keep the dogs healthy and happy. 
• Licensing: The appropriate licensing usually requires some fees. 
• Business insurance: Business insurance will protect you from losses, such as accidents that might happen. If you have employees, Worker’s Compensation is mandatory in many places.

2. Operational costs.

Operation costs are the recurring costs you’ll likely need to pay to keep your business running. These might include:

• Supplies: Cleaning supplies, food, toys, etc. will all be necessary to take care of the dogs. These will be recurring expenses, as you’ll need to replenish your stock on a regular basis. Bulk purchasing from a wholesale supplier can help manage costs.
• Staffing: If you’re running a dog daycare business, you likely won’t be able to do it by yourself. Any good doggy daycare business requires an effective staff set-up, so you’ll need to consider their wages and any benefits on top of your other operational costs. You may need caretakers, trainers, groomers, and administrative staff. This is likely the largest ongoing expense.
• Utilities: Much like living in a residence, power, water, etc. are all recurring expenses you’ll need to account for. Depending on how many dogs you plan to house in your doggy daycare business, these could also end up being far more significant than the facility cost. 
• Marketing costs: Ongoing expenses for digital marketing (social media ads, Google Ads), local advertising, and promotional events need to be considered too. You may also choose to pay an agency to do marketing for you. 
• Management software: Dog daycare facilities should have a good business management software system behind them. Any good management system, like PetExec, will be able to take appointments, deposits, and keep an eye on the logistics of the business operations for you. 

3. Additional expenses.

Although your biggest expenses will be the initial set-up costs and operational costs, don’t forget to consider other things you might run into. 

Your dog daycare facility might want to go above and beyond for pet owners, such as offering luxury suites with extra perks such as TVs so they can watch dog TV.

Don’t forget to include these additional expenses in your start-up costs. These extra perks will help you stand out against your competitors but need to fit within your budget.

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Start-up costs template.

Using a free business start-up costs template will help you calculate your initial costs, your recurring costs, and keep you on budget. Setting up a template like this at the beginning of your venture will also help let you know if your plans are realistic, if there are places you need to scale back, or if there are places you can afford to spend more money.

Start-up costs tax deduction.

The same IRS rules apply whether you have income or not so if you’re asking, can you deduct start-up costs with no income, the answer is yes. However, you need to be aware of the rules to take full advantage of the deductions available.

The IRS permits businesses to deduct up to $5,000 in start-up expenses during their initial year of operation. Any start-up costs exceeding this $5,000 threshold must be amortized over a 15-year period. 

If your start-up costs for dog daycare services exceed $50,000, the $5,000 deduction will be reduced by the amount that surpasses $50,000. For instance, if your costs total $54,000, your immediate deduction will be lowered to $1,000, and so on. That’s also how having a start-up cost template sheet can help—so you can figure this out at the beginning of your dog daycare business plan. 

If you find tax rules confusing, it’s best to consult a professional tax advisor. They’ll be able to work this out for you and get the most out of potential deductions for your business, leading to long-term success.

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Are dog daycares profitable?

Yes, a dog daycare can be very profitable, but it takes a doggie daycare business owner who’s done their research, put a lot of thought into their business plan, and done some intense market research into the pet industry.

While many people who start a dog daycare business do it for the love of pets, there is a concern about the profitability. Dog daycare services are popping up in areas all over the country meaning that while there’s a big target market, there’s also a lot of competition.

How to make your dog daycare profitable.

If you want your dog daycare to reach profitability quickly, there are a few things to bear in mind:

1. Start-up costs: You should make sure your start-up costs are realistic for your budget and plan things ahead of time. Make sure you have everything in place with a tax advisor so you don’t run into trouble and end up with fines that could endanger the business.
2. Get your name out there: You’ll want to make sure you have a marketing strategy in place to bring in new customers. This will include utilizing things like social media, search engine optimization (SEO), and paid ads for your dog daycare so word reaches the right ears.
3. Patience: You may have to be patient in the beginning. A dog daycare can take a lot of money to get off the ground, and it may be a while before you see the profits rolling in. Persistence and hard work are key. 

Final thoughts.

Dog owners want to give their pets the best, so setting up a successful dog daycare can be very profitable. However, the start-up costs involved can be high, so it’s important to get a business plan together and make sure you have the best dog daycare software to support you.

At PetExec, our software is built for pet businesses. We’ve worked hard to develop a software program for dog daycares, with plenty of features such as appointment scheduling, camera integration to monitor dogs, and more.

We offer a free demo to walk you through the software to make sure PetExec is right for your pet care business. Book yours today!

Commonly asked questions.

How to start a dog daycare business?

Starting a dog daycare business can be challenging. You’ll want to get a business plan together, a marketing strategy, and make sure you have the funds from a source such as friends and family, savings, crowdsourcing, or any other legitimate method. Once you have the funds, you can purchase the facility and begin to physically set up the business.

How to choose a dog daycare management software?

When choosing dog daycare management software, you should consider what the needs of your business are, as those will indicate which pet management software you should choose. Consider tasks that can be automated such as scheduling, taking bookings and deposits, answering customer care questions, and installing cameras to link back to the software so you can keep an eye on the dogs.