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.
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 The current pet hotels were offering services limited to dogs, with an outdated business plan for dog training.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
- 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.
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.
|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|
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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.
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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.
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.
|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 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
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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
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
|Year 1||Year 2||Year 3|
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
|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%|
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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.|
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.
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