Table of Content

    Pet hotel business plan for starting your own busines

    Starting a pet hotel business can be fun, especially if you are passionate about pets. Pet hotels facilitate pet owners who, for one reason or the other cannot be with their pets and want to hand them over to a reliable place for a limited time. If you want to start and run a successful pet hotel business, there are several factors you will have to consider.

    In this blog on how to start a pet hotel, we will provide the pet hotel business plan written for Little Paws Pet Hotel. It would help you to develop an impressive business plan presentation for potential investors so that you can have sufficient funding.

    Executive Summary

    2.1 The Business

    After witnessing a lack of innovation, compassion, and thoughtfulness in the existing pet hotels in Dallas, Ryan Orchid decided to open Little Paws Pet Hotel in 2018. The current pet hotels were offering services limited to dogs, with an outdated business plan for dog training. Ryan took the initiative of opening a pet hotel that provides a wide range of services regarding different kinds of pets.

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    2.2 Management of pet hotel

    If you are starting a pet hotel, it is important to ensure that all aspects of the business are coherent. To achieve that you need to make a flawless management plan. The management structure for a pet hotel business will be somewhat similar to that provided in a pet photography business plan. You can take a rough idea from there. However, it is important to make your own managerial strategy and first operationalize everything in a pet boarding business plan. Only by managing your pet hotel well can you provide unmatchable and professional business service.

    2.3 Customers of a Pet Hotel

    Opening a pet hotel in Dallas will particularly interest the following customer groups:

    • Corporate Executives
    • Tourists
    • Celebrities & VIPs
    • College Students

    2.4 Business Target

    The vision of Little Paws Pet Hotel is to provide the safest boarding facilities in Dallas. The business goals related to customer ratings and retention will be given in the later sections. However, the financial goals are depicted here:

    Pet Hotel Business Plan - 3 Years Profit Forecast

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    Company Summary

    3.1 Company Owner

    Ryan Orchid will be the owner of Little Paws Pet Hotel. Ryan has strong leadership and organizational skills that he acquired while working at veterinary clinics since 2008. He graduated with a major in veterinary studies from John Hopkins and has been researching this particular field ever since. 

    3.2 Why the pet hotel is being started

    Ryan realized that the existing pet hotels lacked professional insight and many were using redundant ways of boarding pets. Therefore, he decided to bring in innovation by  starting a pet boarding business of his own.

    3.3 How the pet hotel will be started

    Step1: Plan Out the Business

    Opening a pet boarding business can be a challenging task and requires proper planning ahead of time. A comprehensive business plan can help you analyze different strategies to run your startup and help you do a cost-benefit analysis as well. 

    Step2: Branding is key


    The next step is to be recognized by a wider audience by defining your services and values. To brand your startup, you should have a proper business structure. Moreover, you should hire the most competent employees to establish a great brand image.

    Step3: Find Your Corporate Office 

    Since running a boarding kennel requires constant supervision and monitoring, Ryan decided to establish his corporate office right next to the pet hotel in Dallas. This approach was adopted so that he could visit the site whenever he wanted to conduct quality assurance checks.

    Step4: Go Online

    Living in an age of social media and digitalization, having a web presence is imperative for a company’s success. Little Paws Pet Hotel prioritizes customer satisfaction and will launch a website with a user-friendly interface. Customers of Little Paws Pet Hotel will be able to book and pay for their appointments online.

    Step5: Promote and Market

    The last step is developing and executing a marketing plan to promote your services. To make your pet boarding business a success, you must employ marketing strategies that can help you attain your business objectives. For example, if you are using a business plan a horse boarding, you might have goals related to the number of horses you aim to board in the following months.

    Pet Hotel Business Plan - Startup Cost

    Start-up Expenses  
    Legal $122,400
    Consultants $0
    Insurance $22,200
    Rent $32,600
    Research and Development $10,000
    Expensed Equipment $52,200
    Signs $3,400
    Start-up Assets $202,400
    Cash Required $202,000
    Start-up Inventory $39,000
    Other Current Assets $222,000
    Long-term Assets $187,000
    TOTAL ASSETS $852,400
    Total Requirements $1,095,200
    Start-up Expenses to Fund $242,800
    Start-up Assets to Fund $852,400
    Non-cash Assets from Start-up $1,093,800
    Cash Requirements from Start-up $102,000
    Additional Cash Raised $50,000
    Cash Balance on Starting Date $35,000
    TOTAL ASSETS $1,280,800
    Liabilities and Capital
    Liabilities $18,000
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $50,000
    Other Current Liabilities (interest-free) $0
    Planned Investment $1,095,200
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    Loss at Start-up (Start-up Expenses) $117,600
    TOTAL CAPITAL $1,212,800
    Total Funding $1,095,200
    Any questions? Get in Touch!

    Services of pet hotel

    Starting a home dog boarding business can be daunting and confusing. If you are new to the pet hotel business and are unaware of what facilities you should offer, you can take guidance from here. In this blog, we are mentioning services available at Little Paws Pet Hotel.

    • Pet Boarding Facility

    No matter how much you love your pets, you will need to leave them behind to perform your daily duties. As a responsible pet owner, one thing you much ensure is your pet’s safety while you are away. To help you, pet boarding, a lodging facility for pets, is there. As you leave your kids in daycare centers, you can leave your pets in a pet hotel for a time duration that suits you the most. 

    • Pet Grooming

    The grooming services offered by each groomer will vary. Still, basic services offered by most animal grooming facilities include a dog wash, nail trimming, ear cleaning, hair brushing, and hair trimming.

    • Pet Accessories

    Little Pet Paws offers accessories such as food bowls, leashes and collars, pet beds, and first aid kits at reasonable rates. If you are running a dog boarding business from home, you can have vending machines installed stocked with accessories.

    • Pet Medication

    The five common pet medications include antibiotics, antiparasitics, antifungals, steroids, and pain relievers. A wide range of these medicines will be available at Little Paws Pet Hotel 24/7. If you plan on providing pet medication services and are figuring out how to start a pet boarding business, you must consider a few things. First, you must educate yourself about the laws and regulations of prescribing medication. Second, you should go through at least one pet or dog daycare business plan to learn about the technicalities involved.

    This business plan can also help you resolve queries about how to open a pet boarding business and run it successfully.

    Marketing Analysis of pet hotel

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    5.1 What is the Market Like?

    According to IBIS World, the pet boarding industry is in its growing life cycle. And that means more and more businesses will keep establishing in this domain in the coming years. 

    The industry’s value has even outpaced the GDP of the United States during the period between 2011 and 2016. Hence, if you are thinking of starting a doggie daycare and boarding, now would be the right time.

    5.2 Marketing Segmentation

    While analyzing how to start a pet boarding business at home, you must investigate your target audience. Market segmentation will help you in devising an operational plan as well as in meeting pet boarding license requirements.

    Pet Hotel Business Plan - Marketing Segmentation

    Business Plan for Investors

    5.2.1 Corporate Executives

    Corporate executives have hectic routines with working hours ranging from 7 to 8 hours. As a result, they can’t take care of their pets and resort to pet hotels. At Little Paws Pet Hotel, we will not only take care of their pets but also give them pet boarding tips and assistance.

    5.2.2 Tourists

    While traveling from one destination to another, domestic and international tourists tend to board their pets in pet hotels. This helps them travel with ease and without worry as many tourist sites are pet-free zones.

    Setting up a dog boarding business in Dallas can be profitable due to an increase in the number of tourists visiting the city in recent years.

    5.2.3 Celebrities & VIPs

    Given their lifestyles and work schedules, celebrities and VIPs usually utilize pet grooming facilities at pet hotels. Since they cannot take care of their pets at all times, they are expected to be a viable important source of dog boarding business income.

    5.2.4 College Students

    Students are expected to bring in their pets to get them haircuts, cleaned, and groomed. Students are also expected to be the recurring customers of pet accessories.

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Corporate Executives 29% 21,900 26,280 31,536 37,843 45,412 10.00%
    Tourists 26% 21,800 26,160 31,392 37,670 45,204 10.00%
    Celebrities & VIPs 23% 20,700 24,840 29,808 35,770 42,924 10.00%
    College Students 22% 20,300 24,360 29,232 35,078 42,094 11.00%
    Total 100% 84,700 101,640 121,968 146,362 175,634 10%


    5.3 Business Target

    • Setting up boarding kennels at two different venues within two years of the launch.
    • Having a customer satisfaction score of 96%.
    • Capturing 30% market share within the first year of the launch.
    • Increasing operational capacity by 15% within three years of the launch.

    5.4 Product Pricing

    For the few initial months, we intend to offer reduced prices for our pet hotel services. It is because we want to get known to a greater number of customers from the very start. 

    Marketing Strategy of pet hotel

    Regardless of whether you are thinking of opening a dog boarding business or starting up a boarding kennels business, you need to have an effective marketing strategy. It would help you stand out amidst the competition and capture more market share than your rival companies. 

    Little Paws Pet Hotel will use a robust set of marketing and sales strategies. In this dog daycare and boarding business plan, we are delineating a few segments from their strategic plan. You must go through them if you are thinking of starting your own dog boarding business or even if you are wondering how to start a cat boarding business.

    6.1 Competitive Analysis

    • The services at Little Paws Pet Hotel would be supervised by professional vets who have 7+ years of experience in the field.
    • Sustainable practices such as using local produce for dog and cat food will be employed.
    • All the pets that are boarded would get individual attention and care.
    • The introductory prices offered by Little Paws would be lower than the market rates. However, there would still be no compromise on the quality of services.

    6.2 Sales Strategy

    We will:

      • Ensure that Little Paws is enlisted on offline and online directories.
      • Exploit the social media platforms such as Facebook and Twitter to get renowned.
      • Host a launching party in Dallas city center to create awareness about the benefits of pet hotels.
      • Offer a yearly 10% discount to our recurrent customers.
    Any questions? Get in Touch

    6.3 Sales Monthly

    Pet Hotel Business Plan - Sales Monthly

    6.4 Sales Yearly

    Pet Hotel Business Plan - Sales Yearly

    6.5 Sales Forecast

    Pet Hotel Business Plan - Unit Sales

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    Pet Boarding Facility 2,000 2,120 2,247
    Pet Grooming 1,750 1,855 1,966
    Pet Accessories 1,500 1,590 1,685
    Pet Medication 650 689 730
    TOTAL UNIT SALES 5,900 6,254 6,629
    Unit Prices Year 1 Year 2 Year 3
    Pet Boarding Facility $150.00 $174.00 $201.84
    Pet Grooming $250.00 $290.00 $336.40
    Pet Accessories $125.00 $145.00 $168.20
    Pet Medication $350.00 $406.00 $470.96
    Pet Boarding Facility $300,000.00 $368,880.00 $453,574.85
    Pet Grooming $437,500.00 $537,950.00 $661,463.32
    Pet Accessories $187,500.00 $230,550.00 $283,484.28
    Pet Medication $227,500.00 $279,734.00 $343,960.93
    TOTAL SALES $1,152,500.00 $1,417,114.00 $1,742,483.37
    Direct Unit Costs Year 1 Year 2 Year 3
    Pet Boarding Facility $50.00 $55.00 $57.75
    Pet Grooming $100.00 $110.00 $115.50
    Pet Accessories $65.00 $71.50 $75.08
    Pet Medication $125.00 $137.50 $144.38
    Direct Cost of Sales
    Pet Boarding Facility $100,000.00 $116,600.00 $129,775.80
    Pet Grooming $175,000.00 $204,050.00 $227,107.65
    Pet Accessories $97,500.00 $113,685.00 $126,531.41
    Pet Medication $81,250.00 $94,737.50 $105,442.84
    Subtotal Direct Cost of Sales $453,750.00 $529,072.50 $588,857.69


    Personnel plan of pet hotel

    Since employees of a pet hotel need to interact with animals as well as men, they should demonstrate qualities such as compassion, punctuality, discipline, and more. To hire the best employees, it is essential to include a list of desired staff in your dog boarding facility business plan. In addition, you should also enlist your expectations and job descriptions against each category.

    In this business plan for horse training, we are documenting the personnel plan developed by Little Paws. Since we are providing salaries against each category as well, therefore, you can assess the average cost of pet boarding after going through this section.

    7.1 Company Staff

    The company staff as mentioned in the dog boarding business plan template for Little Paws is as follows:

    • 1 Operation Manager
    • 3 Veterinarians
    • 1 Marketing Person
    • 1 Accountant
    • 3 Cleaners
    • 2 Drivers
    • 2 Security Guards

    7.2 Average Salary of Employees

     Personnel Plan      
    Year 1 Year 2 Year 3
    Manager $30,000 $33,000 $36,300
    Veterinarians $123,000 $135,300 $148,830
    Marketing Personnel $30,000 $33,000 $36,300
    Accountant $23,500 $25,850 $28,435
    Cleaners $92,000 $101,200 $111,320
    Drivers $42,000 $46,200 $50,820
    Guards $43,000 $47,300 $52,030
    Total Salaries $383,500 $421,850 $464,035 


    Financial Plan of pet hotel

    Only by creating a comprehensive financial plan can you ensure that your business operations are well-integrated and oriented to help you achieve monetary goals. It would help you evaluate average cost for pet boarding and estimated costs for running day-to-day operations of the pet hotel.

    Before you make a financial plan for your startup you should study how much pet hotels earn in your vicinity. You should also analyze the financial models that enable them to earn profits.

    In your financial plan, you must also identify when and how to cover your investment amount with the earned profits. Besides figuring out how much a pet hotel costs, it is also important to determine gross margins, business ratios, and balance sheets for at least three years.

    Here we’re providing a business plan used by Little Paws for your help.

    8.1 Important Assumptions

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.12% 8.20% 8.26%
    Long-term Interest Rate 8.40% 8.44% 8.47%
    Tax Rate 24.03% 24.21% 24.60%
    Other 0 0 0
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    8.2 Break-even Analysis

    Pet Hotel Business Plan - Break-even Analysis

    Break-Even Analysis  
    Monthly Units Break-even 5340
    Monthly Revenue Break-even $132,500
    Average Per-Unit Revenue $231.00
    Average Per-Unit Variable Cost $0.62
    Estimated Monthly Fixed Cost $163,800


    8.3 Projected Profit and Loss

     Pro Forma Profit And Loss    
    Year 1 Year 2 Year 3
    Sales $1,152,500 $1,417,114 $1,742,483
    Direct Cost of Sales $453,750 $529,073 $588,858
    Other $0 $0 $0
    TOTAL COST OF SALES $453,750 $529,073 $588,858
    Gross Margin $698,750 $888,042 $1,153,626
    Gross Margin % 60.63% 62.67% 66.21%
    Payroll $383,500 $421,850 $464,035
    Sales and Marketing and Other Expenses $145,000 $148,000 $156,000
    Depreciation $2,300 $2,350 $2,500
    Leased Equipment $0 $0 $0
    Utilities $2,900 $3,000 $3,100
    Insurance $2,100 $2,100 $2,100
    Rent $2,900 $3,000 $3,200
    Payroll Taxes $24,000 $25,000 $27,000
    Other $0 $0 $0
    Total Operating Expenses $562,700 $605,300 $657,935
    Profit Before Interest and Taxes $136,050 $282,742 $495,691
    EBITDA $136,050 $282,742 $495,691
    Interest Expense $0 $0 $0
    Taxes Incurred $27,210 $56,548 $99,138
    Net Profit $108,840 $226,193 $396,553
    Net Profit/Sales 9.44% 15.96% 22.76%


    8.3.1 Profit Monthly

    Pet Hotel Business Plan - Profit Monthly

    8.3.2 Profit Yearly

    Pet Hotel Business Plan - Profit Yearly

    8.3.3 Gross Margin Monthly

    Pet Hotel Business Plan - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Pet Hotel Business Plan - Gross Margin Yearly

    8.4 Projected Cash Flow

    Pet Hotel Business Plan - Projected Cash Flow

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $51,000 $55,080 $59,486
    Cash from Receivables $22,000 $23,760 $25,661
    SUBTOTAL CASH FROM OPERATIONS $73,000 $79,570 $85,936
    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 $74,000 $79,000 $85,000
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $42,000 $42,000 $45,000
    Bill Payments $27,000 $28,000 $31,000
    SUBTOTAL SPENT ON OPERATIONS $69,000 $70,000 $76,000
    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
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $69,000 $74,520 $80,482
    Net Cash Flow $21,000 $23,000 $25,000
    Cash Balance $27,000 $30,000 $33,000


    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet    
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $275,000 $308,000 $338,800
    Accounts Receivable $24,000 $26,880 $30,213
    Inventory $4,300 $4,816 $4,900
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $282,000 $315,840 $355,004
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $19,400 $21,728 $24,444
    TOTAL LONG-TERM ASSETS $24,400 $27,328 $30,744
    TOTAL ASSETS $294,000 $329,280 $370,440
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $18,700 $20,944 $23,541
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $19,000 $21,280 $23,919
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $15,000 $16,800 $18,883
    Paid-in Capital $30,000 $30,000 $31,000
    Retained Earnings $53,000 $57,770 $63,547
    Earnings $193,400 $210,806 $231,887
    TOTAL CAPITAL $285,000 $310,650 $341,715
    TOTAL LIABILITIES AND CAPITAL $300,000 $329,280 $370,440
    Net Worth $293,400 $319,806 $351,787


    8.6 Business Ratios 

     Ratio Analysis        
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.25% 8.03% 8.90% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.21% 10.20% 11.31% 9.80%
    Inventory 5.39% 5.97% 6.62% 9.90%
    Other Current Assets 2.11% 2.34% 2.59% 2.40%
    Total Current Assets 149.80% 151.00% 152.00% 158.00%
    Long-term Assets 11.55% 11.60% 11.64% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.90% 4.94% 4.98% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.59% 7.65% 7.72% 7.38%
    NET WORTH 100.45% 101.25% 102.19% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.60% 97.15% 99.87% 99.00%
    Selling, General & Administrative Expenses 93.56% 96.09% 98.78% 97.80%
    Advertising Expenses 1.52% 1.56% 1.60% 1.40%
    Profit Before Interest and Taxes 41.50% 42.62% 43.81% 33.90%
    Main Ratios
    Current 34 35 36 32
    Quick 33 33.8 34.645 33
    Total Debt to Total Assets 0.18% 0.18% 0.17% 0.40%
    Pre-tax Return on Net Worth 74.08% 74.89% 75.00% 75.00%
    Pre-tax Return on Assets 96.30% 101.12% 106.17% 111.30%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 33.56% 34.60% 35.67% N.A.
    Return on Equity 55.80% 57.53% 59.31% N.A.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.8 7.8 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 32.4 34.02 35 N.A.
    Accounts Payable Turnover 15.6 16 16.3 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.5 2.5 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.04 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $244,000 $257,664 $272,093 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.85 0.87 0.89 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 29 29.12 29.16 N.A.
    Sales/Net Worth 2.1 2.2 2.2 N.A.
    Dividend Payout 0 0 0 N.A.



    • How much can you make by owning a pet hotel?

    The revenue earned by a pet boarding business depends on many factors, such as the business location, competition, services provided, and profit margins. According to PayScale, dog boarding business owners make an average of $50,868 per year.

    • How much does it cost to set up a pet hotel?

    There are many costs to consider while starting a boarding kennel. The average cost is around $45,000 which includes the cost of insurance, equipment, permits, and deposits.

    • How do you open a dog hotel?

    After completing your pet hotel business plan, the following are the steps you need to take to open a dog hotel:

    1. Plan your pet hotel business
    2. Build your pet hotel business into a legal entity
    3. Get your pet hotel business registered
    4. Open a business bank account & establish a credit card
    5. Set up accounts for your pet hotel business
    6. Get the necessary permits & licenses for your pet hotel business
    7. Get your business insured (optional)
    8. Define your pet hotel business brand
    9. Create your pet hotel business website
    10. Market and reach out to customers
    • Are dog hotels profitable?

    If you have innovative  dog boarding facility ideas, you are bound to earn huge profits. From this business plan for dog walking, you can see how much profits Little Paws Pet Hotel generated in just three months.