How to Write a Dog Daycare Business Plan

The dog daycare industry has been growing substantially over the last few years.  There is a multitude of reasons for this.  First, pet owners, especially dog owners, love to spend money on their pets. 

Popular items purchased are grooming, toys, and specialty foods.  With the advent of dog daycares, carving out additional funds for Fido to have companionship during the day is an almost no-brainer for dog owners.  Next, our business plan writer has found that socializing dogs in this type of environment not only helps with energy levels for the pups but also with their interactions with people as well.

As demand for dog daycare is continuing to increase, more entrepreneurial-minded pet owners will embark on this industry.  To assist in helping future dog daycare owners in setting a solid foundation for growth and prosperity, our business plan writer has devised some tips and tricks that may be helpful.

Executive Summary for a Dog Daycare Business Plan.

The executive summary section for a dog daycare business plan should be as concise as possible, no more than two pages, and touch on each segment within the business plan.  Further, dog daycare business owners should highlight the fact that some pet owners spend more on their dogs and cats on a monthly basis as compared to the children.  This one fact alone should be a foundational drive for the importance of a dog daycare business.  Another topic that should be included in the executive summary should be a discussion about revenue growth.  The pet care industry is experiencing substantial growth in the last several years based on research from our business plan writer.  This above-average growth should be documented and discussed not only in the executive section of the business plan but also in the financial segment of the plan as well.

Company Information and Location for a Dog Daycare.

The company information section of the dog daycare business plan should start by explaining the problem that the company will solve.  From our business plan writer’s research, a common problem that a dog daycare business solves is the need for dog companionship while family members are at work or school.  By highlighting this importance, business owners can then discuss in the information section how the dog will be cared for, amenities for the dog daycare, and complimentary services that may be offered, such as grooming or boarding.  By following this structured approach in a dog daycare business plan, writers are better able to accentuate the importance of their business and why pet owners see the need for such services.

Product Description  and Competitive Advantages for a Dog Daycare Business

A dog daycare’s main revenue generator is almost always the daycare services provided by the company.  However, a close second and third revenue generator for this type of business is grooming and boarding services.  When discussing the dog daycare service, make sure to first establish the amenities included in a typical dog daycare service.  These amenities may include individual candles, 1 to 2 hours of playtime outside, and other free included services.  Next, discuss additional services that may be added to a dog daycare service.  Some of these services may include a TV in the kennel, premium dog food, or individual playtime.  Once this foundation is set, then explore the complementary services like grooming, boarding, and other premium amenities.  This strategy will help the reader understand the foundational components of your business, which typically create your competitive advantage, then the additional services often may fall into the category of differentiation.

Target Market

The target markets for dog daycare is pretty straightforward.  For the most part, dog daycare business owners target dog owners in a specific geographic area, sometimes either 5 to 10 miles radius from their location.  Further, a second target market may include individuals working within the same geography.  By targeting this demographic, dog daycare business owners may be able to exploit opportunities outside the geographic area while still making the business location convenient for the pet owner.

Industry research for a Dog Daycare Business Plan

The dog daycare industry section in a business plan should focus on a national perspective of the dog daycare industry.  If additional information is needed, such as industry competitors, then a local discussion may follow.  When discussing the dog daycare industry, an unfortunate reality is that there is relatively little information available.  From this, business plan writers need to examine the broader industry, which is owners spending money on pet supplies and services.  When this topic is examined, a multitude of information in statistics is available.  For example, pet care services in the last couple of years have enjoyed a 110% growth based on research from the US census bureau.  In addition, the same source has found that as income increases for households, so does the number of pets owned.  Finally, the number of households on average with pets differs from city to city.  For example, Phoenix, Arizona, and Riverside, California both have household pet ownerships over 50%.  In contrast, Washington DC and New York City both have pet ownerships below 40%.  This shows that geography may be a factor in starting a successful dog daycare business.

Owner and Management Section

The owner and management section of the dog daycare business should first start with examining the drive and motivation behind the owner wanting to start this type of business.  This is a great place for a short biography or story about the owner.  Topics covered in this segment may include pet ownership as a child and adult, experiences with love the pets, and how a hobby or passion for pets has accumulated into the need for starting a dog daycare.  Once this information is presented, then expand into educational experiences as well as professional experiences.  Finally, make sure to tie-in how educational and professional experiences will help a dog daycare business owner succeed in the current economic environment.

Funding Request for a Dog Daycare Business Plan

The funding request section for a dog daycare business plan should start with the total dollar amount needed to start and grow your business.  However, when creating the financial model for the dog daycare business, this should be the last item found.  In the financial model, make sure to start with identifying different categories for your dog daycare business.  The categories may include facility buildout, outdoor dog equipment, staffing and hiring funds, working capital, inventory, pet supplies, and computer systems.  Once dollar amounts are aligned for each category, then explore how much money will be needed for operational costs and a “rainy day” fund.  Finally, always make sure to include a miscellaneous section.  This miscellaneous section will help cover costs that are unexpected cuts such as repairs.  Once dollar amounts are aligned for each one of the segments, total up the startup cost needed.

Financials for a Dog Daycare.

In the financial section for dog daycare, it should always start with daily sales and variable cost aligned with the sales based on research from her business plan writer.  Once the daily revenues and variable cost are noted, then expand this finding into a 30-day projection.  With this complete, make sure to subtract monthly costs such as rent, pet supplies, electricity, and maintenance for outdoor pet playground equipment.  The difference between the revenues and costs will be the organization’s expected net profits for the month.  In following this structure, business owners are able to justify projections based on daily assumptions and monthly growth rates.

Hopefully, these insightful tips and tricks for writing a business plan were helpful.  As always, if you need help with a business plan or financial projections, just send us an email or give us a call. 

Phone: 321-948-9588



Author: Paul Borosky, Doctoral Candidate, MBA., Author

Owner of: Quality Business Plan, and Quality Business Consultant.

Date: 11/30/2020