Table of Content

    Pet hotel business plan for starting your own business

    Starting a pets hotel business can be fun, especially if you are passionate about pets. Pets’ hotel exists for owners who, for one reason or the other – personal, business, vacation – cannot be with their pets and so take them to a place where they can stay and be cared for the duration of a time they intend to be away. To however start and run a successful pet hotel business, there are several factors to consider.

    Hence if you are confused about where to start from and how to start a pet hotel, you can refer to this pet hotel business plan designed for Little Paws Pet Hotel. It would help if you had an impressive business plan presentation for potential investors so that you have sufficient funding for your startup.

    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 The current pet hotels were offering services limited to dogs, with an outdated business plan for dog training.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 with a promise that he will provide a wide range of services to different kinds of pets.

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    2.2 Management of pet hotel

    While starting a pet hotel, it is important to ensure that all aspects of the business are coherent. Hence, it is essential that you prepare a unique pet boarding business plan for a professional business service.

    A pet hotel business model will be somewhat similar to a pet photography business plan. Hence, it is essential to have a customized business plan that is in line with your resources and objectives for your startup.

    2.3 Customers of a Pet hotel

    Although Little Paws Pet Hotel will offer services to everyone with pets, opening a pet hotel in Dallas will particularly interest the following customer groups:

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

    2.4 Business Target

    Little Paws Pet Hotel’s vision is to provide the safest and most conducive boarding facilities for pets and be the preferred pets’ hotel here in Dallas. To achieve this vision, we intend to get the right equipment and ensure that we provide a conducive environment and the right staff for all the pets boarding at our facility.

    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 thought of starting a pet boarding business. He realized that the existing pet hotels lacked professional insight and thought his startup could be one of its kind. Other pet hotels in the market were using conventional ways of boarding pets and were not keeping up with changing trends.

    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 that needs to be done ahead of time. A comprehensive business plan can help you analyze different strategies that suit your startup and do a much-needed cost-benefit analysis.

    Step2: Branding is key


    The next step is to be recognized by defining your business’s services and values. Having the proper business structure is very important to us at Little Paws Pets Hotel. We are concerned with getting the company started on the appropriate foundation to allow for smooth business operations. For this reason, we sought and hired the best employees who are not only competent and have the right experience but understand the business thoroughly.

    Step3: Find Your Corporate Office

    Since running a boarding kennel requires constant supervision and monitoring, Ryan decided to have his corporate office set up right next to the pet hotel in Dallas. This helps him visit the site whenever he wants to and 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 have a website with a user-friendly interface. Customers of Little Paws Pet Hotel will be able to book their appointments online and will have an option to pay online too.

    Step5: Promote and Market

    The last step is developing and executing a marketing plan to promote your services. To make your pet boarding business successful, you must employ marketing strategies that will tie 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. To meet this objective, you would have to employ relevant marketing strategies.

    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

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    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 the facilities to offer, you can refer to the services available at Little Paws Pet Hotel mentioned below:

    • Pet Boarding Facility

    Regardless of how much you love your pet, there will come a time when you have to leave them behind, be it for a vacation or a work conference out of town. As a responsible pet owner, one thing you much ensure is your pet’s safety while you are away. Pet boarding is a lodging facility like daycare for kids, except that you can leave your pets for an overnight or extended stay.

    • 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 and filing, 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. Suppose you plan on providing pet medication and are figuring out how to start a pet boarding business. In that case, you must educate yourself about the laws and regulations of prescribing medication.


    If you are new to the industry and learning how to open a pet boarding business, it is recommended that you go over this dog daycare business plan to learn about the technicalities involved.

    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, which has seen more businesses start up and more people being employed.

    The industry’s value has outpaced that of the GDP of the United States during the period between 2011 and 2016. It is expected to rise to an average annual rate of 7.3% before 2022, while the GDP before 2022 is likely to increase by an average yearly rate of 2.2%. 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 is a vital thing to meet pet boarding license requirements.

    Pet Hotel Business Plan - Marketing Segmentation

    Business Plan for Investors

    5.2.1 Corperate executives

    Corperative executives are usually tied to their 9 to 5 jobs and cannot tend to their pets during these hours. As a result, they resort to pet hotels. We are open to all kinds of pet boarding tips because we at Little Paws Pet Hotel want you to trust us with your pets.

    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 no worries about visiting pet-free zones. Setting up a dog boarding business in Dallas can be profitable due to the increased 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, so they do not have to do it themselves. This customer group is an important source of dog boarding business income.

    5.2.4 College Students

    Students usually bring in their pets to get their haircuts given the academic workload. Students are also 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 a boarding kennels at two different venues within 2years of operations
    • Have a customer satisfaction score of 96%
    • Capture 30% market share within the first year of business
    • Increase operational capacity by 15% over three years of business

    5.4 Product Pricing

    To gain the needed customers for the first few months of our business and increase awareness, we intend to offer reduced prices for our pet hotel services.

    Marketing Strategy of pet hotel

    Regardless of whether you are thinking of opening 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 competition and capture market share.

    Little Paws Pet Hotel will use a robust set of marketing and sales strategies that are mentioned in this dog daycare and boarding business plan. Hence it would be helpful for you to read it thoroughly if you are thinking of starting your own dog boarding business or 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 insights worth 7+ years of experience
    • Sustainable practices such as using local produce for dog and cat food will be employed at Little Paws
    • 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 without compromising on the quality of services

    6.2 Sales Strategy

    • Ensure that Little Paws is enlisted on offline and online directories
    • Leverage on social media platforms such as Facebook and Twitter
    • Host a launching party in Dallas city center to draw attention and create awareness about the pet hotel
    • Engage in direct marketing
    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

    The average cost of pet boarding is similar to that mentioned in business plan for horse training. It is important to account for different kinds of costs to forecast financial returns accordingly. These costs include the salaried employees at the pet hotels, especially the one with an extensive dog boarding facility business plan.

    7.1 Company Staff

    This dog boarding business plan template for Little Paws will hire for the following positions:

    • 1 Pet Hotel Manager
    • 3 Veterinarians
    • 1 Marketing Personnel
    • 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

    A sole focus on increasing sales does not ensure that your business has become successful and yields profits. It would help if you did a thorough analysis of the average cost for pet boarding and estimated the operations’ capacity for your business accordingly.

    It is a good idea to conduct a marketing analysis beforehand are get an estimate of how much are pet hotels are currently making.

    In your financial plan, you must identify when and how to cover your investment amount with the earned profits. Moreover, it would help analyze your yearly expenses to find out the possibilities of reaching an economy of scale. One way of doing that is calculating how much does a pet hotel cost.

    Here we’re providing a business plan used by Little Paws for you to use as a reference.

    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.



    1. How much can you make owning a pet hotel?

    A pet boarding business’s revenue will depend on many factors, like the business’s location, competition, services provided, and profit margins. According to PayScale, dog boarding business owners make an average of $50,868 per year, though that income ranges from as low as $20,000 to as high as $122,000

    2. 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 $45,000 which includes the cost of insurance, equipment, permits, and deposits.

    3. 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:

    a) Plan your Pet Hotel Business

    b) Form your Pet Hotel Business into a Legal Entity

    c) Register your Pet Hotel Business for Taxes

    d) Open a Business Bank Account & Credit Card

    e) Set up Accounting for your Pet Hotel Business

    f) Get the Necessary Permits & Licenses for your Pet Hotel Business

    g) Get Pet Hotel Business Insurance

    h) Define your Pet Hotel Business Brand

    i) Create your Pet Hotel Business Website

    j) Set up your Business Phone System

    4. Are dog hotels profitable?

    If you have innovative  dog boarding facility ideas, you are bound to make money. These days, business plan for dog walking has proven to be the most profitable.

    Download Pet Hotel Business Plan Sample in pdf