Do you want to start dog kennel business plan?
Do you want to start a dog kennel business? Well, the business is quite profitable because many people cannot provide the required care and maintenance to their pet animals. Primarily due to their busy routines. A dog kennel provides shelter, space, and professional care to pet dogs for a short and long time.
While the business is profitable, it is extremely demanding too. To make sure that your startup becomes your success, you’ll have to manage the land, resources, and finances to the full.
If you are looking for how to open dog kennels business you are on the right site. In this blog we will be providing all the details and business plan for dog kennel startup, Jake’s Kennel Club.
2.1 The Business
Jake’s Kennel Club will be a dog kennel facility based in Detroit. The registered, licensed and insured business will aim at providing all the services relevant to dog care and maintenance. To assist people who might not be able to take care of their dogs for any reason, we will provide a wide range of services from bathing their dogs to letting them exercise.
2.2 Management of Dog Kennel Business
Management of a dog kennel is not an easy task. When you are searching for how to set up a dog boarding business you must keep in mind that you’ll require to hire persons who are specialized in dog care and training. Moreover, you will be needing some vets, a lot of cleaners, and resource and finance management staff for starting a dog boarding business at home or any commercial building.
In this blog on how to start your own dog boarding business plan, we’ll provide all details of the personnel plan, financial plan, and all management-related strategies of Jake’s Kennel Club.
2.3 Customers of Dog Kennel Business
Our major customers will be adults and youngsters who cannot afford to care for their pets due to their job routines. Children and teens and senior citizens will also be availing of our services frequently.
2.4 Business Target
Our major targets are:
- To achieve a repeat purchase rate of 90% by the end of the first six months.
- To maintain a CSAT score of above 95% throughout our service years.
- To earn a net profit margin of $26.7k per month by the end of the third year.
3.1 Company Owner
Jake’s Kennel Club will be started by Jake Frost. Jake is an MBA with an extreme passion for pet care. Throughout his life, he has kept several animals just because he loves helping nature.
3.2 Why the dog kennel business is being started
Jake wanted to start some different and newer sort of business. After analyzing his passion and interests he decided to start a dog kennel. The major reason behind this decision was his passion. He wanted to earn by doing what he loved the most.
3.3 How the dog kennel business will be started
Step1: Plan Everything
The first step is to study dog kennel business plan examples to understand what others are doing in this business domain. After analyzing several running a dog kennel business plans you should start developing a business plan for your startup. To help you in identifying the major components of a business plan, we are providing dog kennel business plan sample for Jake’s Kennel Club, free of cost.
Step2: Define the Brand
The second step is to acquire the licenses and registration and start working on defining the company’s values, targets, customer care policies, and services. Through these things, your customers will know who you are and how you are different than your competitors.
Step3: Establish Physical and Web Presence
The next you have to do is establishing your dog kennel. For that, you will have to recondition your land for providing activities, sleeping, and bathing spaces for dogs.
Moreover, to let your customers have an insight into your care and maintenance operations, you should launch your website. Through that, you will also be able to get online orders and payments.
Step4: Promote and Market
The last thing to finalize your launch is to develop and execute your sales strategy. It is only through influencing advertising that you will be able to attract more and more customers to your site.
|Research and Development||$30,000|
|TOTAL START-UP EXPENSES||$378,000|
|Other Current Assets||$220,000|
|Start-up Expenses to Fund||$378,000|
|Start-up Assets to Fund||$1,330,300|
|TOTAL FUNDING REQUIRED||$1,708,300|
|Non-cash Assets from Start-up||$1,760,300|
|Cash Requirements from Start-up||$385,400|
|Additional Cash Raised||$49,000|
|Cash Balance on Starting Date||$29,000|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$40,000|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,708,300|
|Loss at Start-up (Start-up Expenses)||$445,400|
|TOTAL CAPITAL AND LIABILITIES||$2,223,700|
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By owning a dog kennel business you have the freedom to decide on any type of services. You may choose to provide general pet sitting services and you can also offer the services for just dog breeds.
Jake decided to offer services specifically restricted to just dogs. The services he’ll offer are listed here in this dog kennel business plan template.
- Dog Daycare & Grooming: Our primary service will be providing a daycare facility for dogs. This service will last for 6 to 15 hours a day, according to the clients’ requirements. In this, we’ll be responsible for feeding, grooming, cleaning, and engaging your dog till the time you’re busy with other tasks. This service will include
- Dog Grooming
- Dog Walking Business
- Dog Cleaning/ Washing/ Bathing
- Dog Feeding
- Dog Training: We’ll also provide dog training services business. In this, we’ll train your newly petted dogs to make them behave as you want.
- Dog Boarding Service: In this service, we’ll provide dog daycare service on a long-term basis with night care and sleeping arrangements incorporated too. We will offer several packages for full-time dog care for multiple days to several weeks and months.
- Dog Shuttle Service: To facilitate our customers we will offer dog shuttle services. In this, we will provide pick and drop services to their dogs. So that they don’t have to come to us to pick their pet animals.
Marketing Analysis of Dog Kennel Business
Franchise Business Plan
Marketing analysis is a must before you set up dog kennel business plan. In marketing analysis, you study the target marketplace to identify previous ups and downs and forecasted market analytics. Moreover, this analysis helps you in identifying your customers so that you can also set a pricing strategy that meets their needs and incomes.
In this blog on how to write a business plan for a dog kennel, we are providing marketing analysis done for Jake’s Kennel Club, free of cost.
5.1 Market Trends
Dog kennel businesses are high in demand and will remain in demand for the next five to ten years. According to IBISWorld, over 139k pet grooming and boarding businesses are running in the United States. In the past five years i.e. from 2016 to 2021, this industry has seen a growth rate of 1.9%. And the business is expected to grow by 23.4% in the U.S. in 2021 alone. Moreover, the U.S. market size of this business is estimated to be $8.8 billion in 2021 by the same source.
All these stats suggest that there are minimum risks of failure if you enter this venture. Therefore, you should not unnecessarily delay the launch anymore.
5.2 Marketing Segmentation
Before you make a business plan for starting a dog kennel, you should explore the groups of your target customers. In-depth knowledge of your customers, their average incomes, buying capabilities, and interests help you in estimating sales. Through that, you can figure out how much to spend on your startup on a particular service while considering it from a sales point of view.
In this business plan for opening a dog kennel we’re providing the marketing segmentation done for Jake’s Kennel Club. By studying this you can have an idea of who is most likely to avail of your services.
5.2.1 Working Class
Our primary customers will be the adults and youngsters who have to go for their 9 a.m. to 5 p.m. jobs. Such people can never meet the needs of their pet animals whether they are hygienic or care-related.
To help this group, we’ll take care of their dogs for a specified time every day. In our dog daycare business plan, their dogs will be groomed and fed. Moreover, they will be involved in games, and exercising activities.
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5.2.2 Senior Citizens
The second group of our target customers will comprise the senior citizens living in our city. Senior people usually keep pets but find it very hard to train or groom their pets themselves – that too daily. Therefore, we will do this difficult task for them.
5.2.3 Children & Teens
Our last group of customers will be the children and teens who are fond of keeping pets. But are too irresponsible to take good care of them. Thus, they are expected to bring their dogs to us for training, grooming, and washing them.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
|Children & Teens||21%||19,000||20,000||22,000||23,000||24,000||11.00%|
5.3 Business Target
Very professional and efficient services. Highly recommended.
Our business targets are to attain a net promoter score above 60 within a year of our launch. Moreover, we aim at achieving a repeat purchase rate of 90% by the end of the first six months. And to ensure a customer satisfaction score of above 95% throughout our service years.
5.4 Product Pricing
Our prices are almost the same as that of our competitors. Moreover, due to our highly customer-oriented policies, we have priced our shuttle services at the lowest rate in the whole market. To retain our potential customers, we’ll also be providing several discounts to our repeat clients.
After establishing your business, you should start exploring dog kennel ideas plans to figure out the most suitable advertisement strategy. In this dog kennel business plan pdf we are providing the sales strategy for Jake’s Kennel Club to help you in developing yours.
6.1 Competitive Analysis
Our competitive benefits are listed below:
- We are highly customer care oriented. To satisfy our customers we’ll allow them to monitor their pets at any time through a video call, or our mobile app.
- Our prices for dog shuttle services are the lowest among all of our competitors.
- Our workers are highly collaborative and loving. They will treat your animals with utmost care and love.
6.2 Sales Strategy
- We’ll run a social media campaign emphasizing how we can help people taking care of their animals.
- We’ll advertise our startup through Google Local ads service, local magazines, local newspapers, and by installing posters.
- We’ll offer a 50% discount on dog daycare services for the first month of our launch.
- We’ll provide a 30% discount on our dog training services for the first two months.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|Dog Daycare & Grooming||58,000||61,480||65,169|
|Dog Boarding Service||23,000||24,380||25,843|
|Dog Shuttle Service||48,000||50,880||53,933|
|TOTAL UNIT SALES||163,000||172,780||183,147|
|Unit Prices||Year 1||Year 2||Year 3|
|Dog Daycare & Grooming||$45.00||$52.20||$60.55|
|Dog Boarding Service||$58.00||$67.28||$78.04|
|Dog Shuttle Service||$36.00||$41.76||$48.44|
|Dog Daycare & Grooming||$2,610,000.00||$3,209,256.00||$3,946,101.18|
|Dog Boarding Service||$1,334,000.00||$1,640,286.40||$2,016,896.16|
|Dog Shuttle Service||$1,728,000.00||$2,124,748.80||$2,612,591.12|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Dog Daycare & Grooming||$43.00||$50.00||$57.00|
|Dog Boarding Service||$55.00||$64.00||$74.00|
|Dog Shuttle Service||$34.00||$38.00||$45.00|
|Direct Cost of Sales|
|Dog Daycare & Grooming||$2,494,000.00||$3,074,000.00||$3,714,621.60|
|Dog Boarding Service||$1,265,000.00||$1,560,320.00||$1,912,367.20|
|Dog Shuttle Service||$1,632,000.00||$1,933,440.00||$2,426,976.00|
|Subtotal Direct Cost of Sales||$6,785,000.00||$8,189,560.00||$10,040,489.60|
While you write business plan dog kennel you should also prepare a list of employees you’ll need to run your business. A good strategy for business is to also include their job descriptions and average salaries so that you can plan all aspects relevant to them.
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7.1 Company Staff
Jake will be the CEO herself. For his assistance, he’ll hire:
- 1 Co-Manager to monitor business operations
- 1 Accountant to maintain financial records
- 1 Dog Playground Supervisor to supervise dogs’ activities
- 2 Pet Behavioral Trainers to train dogs
- 4 Dog Groomers to ensure the dogs are clean and tidy
- 2 General Dog Care Workers to take care of dogs’ health and food intake
- 1 General Assistant
- 1 Web Developer to manage the online presence
- 1 Sales Executive to execute the sales strategy
- 2 Cleaners to clean the facility
- 1 Driver to provide shuttle service
7.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
|Dog Playground Supervisor||$9,000||$9,900||$10,890|
|Pet Behavioral Trainers||$18,000||$19,800||$21,780|
|General Dog Care Workers||$16,000||$17,600||$19,360|
Setting up your business doesn’t ensure long-term success unless you have an accurate financial plan. The importance of a financial plan can never be ignored no matter how small your business is. When you are creating a business plan for a dog kennel you must include a detailed financial plan in it.
A comprehensive financial plan should contain break-even analysis, projected profit and loss tables, gross margin charts, cash flow table, and balance sheet. These analytics can help you understand how to minimize or avoid loss. Moreover, they can also help you proactively manage risks and unexpected situations.
For reference, we’re providing the financial plan developed for Jake’s Kennel Club here.
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.17%||8.23%||8.29%|
|Long-term Interest Rate||8.28%||8.33%||8.38%|
8.2 Break-even Analysis
|Monthly Units Break-even||5342|
|Monthly Revenue Break-even||$134,220|
|Average Per-Unit Revenue||$237.00|
|Average Per-Unit Variable Cost||$0.67|
|Estimated Monthly Fixed Cost||$163,980|
8.3 Projected Profit and Loss
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$6,785,000||$8,189,560||$10,040,490|
|TOTAL COST OF SALES||$6,785,000||$8,189,560||$10,040,490|
|Gross Margin %||4.89%||6.64%||6.91%|
|Sales and Marketing and Other Expenses||$124,000||$125,000||$126,000|
|Total Operating Expenses||$308,988||$326,083||$344,640|
|Profit Before Interest and Taxes||$40,012||$256,323||$400,880|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|Cash from Receivables||$17,800||$19,224||$20,762|
|SUBTOTAL CASH FROM OPERATIONS||$71,000||$77,390||$83,581|
|Additional Cash Received|
|Sales Tax, VAT, HST/GST Received||$0||$0||$0|
|New Current Borrowing||$0||$0||$0|
|New Other Liabilities (interest-free)||$0||$0||$0|
|New Long-term Liabilities||$0||$0||$0|
|Sales of Other Current Assets||$0||$0||$0|
|Sales of Long-term Assets||$0||$0||$0|
|New Investment Received||$0||$0||$0|
|SUBTOTAL CASH RECEIVED||$72,000||$78,000||$84,000|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$54,000||$56,000||$59,000|
|Additional Cash Spent|
|Sales Tax, VAT, HST/GST Paid Out||$0||$0||$0|
|Principal Repayment of Current Borrowing||$0||$0||$0|
|Other Liabilities Principal Repayment||$0||$0||$0|
|Long-term Liabilities Principal Repayment||$0||$0||$0|
|Purchase Other Current Assets||$0||$0||$0|
|Purchase Long-term Assets||$0||$0||$0|
|SUBTOTAL CASH SPENT||$55,000||$59,400||$64,152|
|Net Cash Flow||$16,300||$17,000||$18,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$294,000||$329,280||$370,111|
|TOTAL LONG-TERM ASSETS||$28,000||$31,360||$35,280|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$17,200||$19,264||$21,653|
|TOTAL LIABILITIES AND CAPITAL||$281,000||$333,872||$375,606|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.17%||2.40%||2.66%||2.40%|
|Total Current Assets||151.09%||152.00%||153.40%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||93.44%||95.96%||98.65%||97.80%|
|Profit Before Interest and Taxes||41.60%||42.72%||43.92%||33.90%|
|Total Debt to Total Assets||0.20%||0.19%||0.18%||0.40%|
|Pre-tax Return on Net Worth||74.95%||75.16%||75.66%||75.00%|
|Pre-tax Return on Assets||94.04%||98.74%||103.68%||111.30%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||33.06%||34.08%||35.14%||N.A.|
|Return on Equity||57.10%||58.87%||60.70%||N.A.|
|Accounts Receivable Turnover||7.7||7.7||7.8||N.A.|
|Accounts Payable Turnover||16.5||16.5||16.6||N.A.|
|Total Asset Turnover||2.4||2.5||2.5||N.A.|
|Debt to Net Worth||-0.03||-0.04||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$245,000||$258,720||$273,208||N.A.|
|Assets to Sales||0.85||0.86||0.87||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
Illustrative business plan samples
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