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.
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 The current pet hotels were offering services limited to dogs, with an outdated business plan for dog training.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.
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
- 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:
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.
|Research and Development||$10,000|
|TOTAL START-UP EXPENSES||$242,800|
|Other Current Assets||$222,000|
|Start-up Expenses to Fund||$242,800|
|Start-up Assets to Fund||$852,400|
|TOTAL FUNDING REQUIRED||$1,095,200|
|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|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$50,000|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,095,200|
|Loss at Start-up (Start-up Expenses)||$117,600|
|TOTAL CAPITAL AND LIABILITIES||$1,280,800|
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.
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.
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.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
|Celebrities & VIPs||23%||20,700||24,840||29,808||35,770||42,924||10.00%|
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
- 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.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|Pet Boarding Facility||2,000||2,120||2,247|
|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 Boarding Facility||$300,000.00||$368,880.00||$453,574.85|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Pet Boarding Facility||$50.00||$55.00||$57.75|
|Direct Cost of Sales|
|Pet Boarding Facility||$100,000.00||$116,600.00||$129,775.80|
|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
|Year 1||Year 2||Year 3|
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
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.12%||8.20%||8.26%|
|Long-term Interest Rate||8.40%||8.44%||8.47%|
8.2 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|
|Direct Cost of Sales||$453,750||$529,073||$588,858|
|TOTAL COST OF SALES||$453,750||$529,073||$588,858|
|Gross Margin %||60.63%||62.67%||66.21%|
|Sales and Marketing and Other Expenses||$145,000||$148,000||$156,000|
|Total Operating Expenses||$562,700||$605,300||$657,935|
|Profit Before Interest and Taxes||$136,050||$282,742||$495,691|
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||$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|
|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|
|SUBTOTAL CASH SPENT||$69,000||$74,520||$80,482|
|Net Cash Flow||$21,000||$23,000||$25,000|
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||$282,000||$315,840||$355,004|
|TOTAL LONG-TERM ASSETS||$24,400||$27,328||$30,744|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$19,000||$21,280||$23,919|
|TOTAL LIABILITIES AND CAPITAL||$300,000||$329,280||$370,440|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.11%||2.34%||2.59%||2.40%|
|Total Current Assets||149.80%||151.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||93.56%||96.09%||98.78%||97.80%|
|Profit Before Interest and Taxes||41.50%||42.62%||43.81%||33.90%|
|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.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15.6||16||16.3||N.A.|
|Total Asset Turnover||2.5||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$244,000||$257,664||$272,093||N.A.|
|Assets to Sales||0.85||0.87||0.89||N.A.|
|Current Debt/Total Assets||1%||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:
- Plan your pet hotel business
- Build your pet hotel business into a legal entity
- Get your pet hotel business registered
- Open a business bank account & establish a credit card
- Set up accounts for your pet hotel business
- Get the necessary permits & licenses for your pet hotel business
- Get your business insured (optional)
- Define your pet hotel business brand
- Create your pet hotel business website
- 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.
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.