Pet Hotel Business Plan Sample

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 The current pet hotels were offering services limited to dogs, with an outdated business plan for dog training.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.

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.

Franchise Business Plan

Helps the franchisee get business case approval from the franchisor

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

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.

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
TOTAL START-UP EXPENSES	$242,800
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 FUNDING
Start-up Expenses to Fund	$242,800
Start-up Assets to Fund	$852,400
TOTAL FUNDING REQUIRED	$1,095,200
Assets
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
TOTAL LIABILITIES	$68,000
Capital
Planned Investment	$1,095,200
Investor 1	$0
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$1,095,200
Loss at Start-up (Start-up Expenses)	$117,600
TOTAL CAPITAL	$1,212,800
TOTAL CAPITAL AND LIABILITIES	$1,280,800
Total Funding	$1,095,200

Any questions? Get in Touch!

Name*

Email*

Phone

Fill the Form

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

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.

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

6.4 Sales Yearly

6.5 Sales Forecast

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
Sales
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

Any questions? Get in Touch

8.2 Break-even Analysis

Break-Even Analysis
Monthly Units Break-even	5340
Monthly Revenue Break-even	$132,500
Assumptions:
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%
Expenses
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

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 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.

 

FAQ

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