How to Start a Dog Daycare

By FindLaw Staff | Legally reviewed by Bridget Molitor, J.D. | Last reviewed October 07, 2024
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If you love animals, starting a dog daycare could be an exciting way to turn your passion into a business. However, it’s important to address some legal considerations before you decide if this business is right for you. This guide will help you understand the steps to starting your dog daycare business.
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- 1. Decide on Your Business Concept and Model
- 2. Write a Business Plan
- 3. Learn About Licensing Requirements
- 4. Select a Name for Your Business
- 5. Choose and Form Your Business Entity
- 6. Plan for Taxes
- 7. Fund Your Business
- 8. Find a Location
- 9. Purchase Business Insurance
- 10. Purchase Supplies
- 11. Create a Contract
- 12. Determine Policies and Procedures
- 13. Create Packages and Pricing
- 14. Create a Marketing Plan
- 15. Hire Employees
There are a variety of different doggie daycare services to consider including:
- Daycare
- Overnight and long-term boarding
- Luxury dog boarding
- Obedience and agility classes
- Dog birthday parties
- Dog swimming and splashpad events
- Dog training
- Dog grooming
Your dog daycare facility can include some or all of these services, and the more you offer, the greater your market will be.
Instead of starting your own dog daycare business from scratch, you can also consider franchise opportunities where you buy into an existing business model.
A dog daycare business plan will help you solidify your objectives, marketing strategy, and growth plan.
This dog daycare business plan should also include a financial analysis that shows you how much income you need to generate to cover expenses and become profitable.
Should you decide to seek funding from a bank or investor, your business plan will be one of the determining factors used to evaluate whether your business is something they should invest in.
Your dog daycare will likely require state or local licenses or permits under local ordinances. An on-site inspection may be required to complete the process. Part of that inspection involves reviewing your sanitation procedures to make sure they meet requirements.
It's a good idea to review your state or county's requirements for doggie daycare or kennels before you buy or lease your facility.
A unique name will make your business memorable, but be sure to choose one that indicates what your business actually does. You'll want to ensure your name has not been taken or trademarked by another business in your state. A business name search will ensure your name is available.
If you are running the business yourself, you may be comfortable being a sole proprietorship, but it is a good idea to consider forming your business as a limited liability company (LLC) or corporation so that you can protect your personal assets from liability for the business. This may also provide tax advantages.
If you decide to form an LLC or corporation, check with your state's Department of State for the necessary formation documents, or you can let our trusted partner LegalZoom handle your business formation filing for $99 plus filing fees. Once you file the right documents, your business is officially ready to go.
No matter how you organize your business, it is important that you keep your business finances separate from your personal finances. A business banking account and credit card can help you do this.
As a small business owner, you will need to pay taxes, so it is important to maintain meticulous records detailing your expenses and income.
Be sure to understand the state and federal taxes that are applicable to your business, which may include sales tax for services or products. You will also have to pay payroll taxes for your employees.
Additionally, you'll need to obtain an Employer Identification Number (EIN) from the IRS, which is used on all of your tax forms.
Your business plan helps you determine what your start-up costs will be. A dog daycare can be an expensive startup business.
You not only need a brick and mortar location; you also need it specially configured. You'll have to purchase software to help you manage client information and reservations, as well as do employee scheduling. Software can help you manage payments as well.
In addition to those costs, you will likely have license and permit fees to cover, and you will need a budget for payroll for your employees.
You could bootstrap the business by using your own funds, but you may find you need a business loan. If you don't qualify for a loan or don't want to involve a financial institution, friends and family might be willing to invest in your business to get it off the ground.
It's important to ensure you have enough money to cover your expenses while you get the business started.
Once you know how many dogs you want to have space for at your dog daycare service, you can begin looking to lease or buy a facility. Leasing is the least expensive approach, but buying a location allows you to build equity in the property.
There are many considerations when choosing a location such as a play area, security, fencing, drainage, temperature control, noise control, fire safety, and pet-safe features.
As a dog daycare business owner, it is important to be aware of local government zoning issues, which will impact where you can operate your business.
Insurance is a key protection for your business. Liability insurance will protect your startup business against damages or injuries to animals, employees, or customers.
You may also need to provide workers' compensation insurance if your state requires it. Whether you lease or own your location, you will want property insurance to cover the property and the contents.
You will want to prepare a contract for your services that your dog owner clients will have to sign. It should not only include all of your policies but should also address payment and cancellation issues.
The contract is part of a paperwork package your clients receive. It should also include your polices and procedures and intake forms, as well as promotional material about your services. Include contact information and a phone number.
A key component of your contract is a liability waiver, which protects you and your business from potential lawsuits.
Your staff and your dog owner customers will want to know what the rules are at your facility. Creating written policies helps everyone understand expectations.
This can include drop off and pick up times, procedures for dog illness or injury, unacceptable dog behavior, intake forms, dog breeds accepted, vaccine requirements, rules about dog age and spaying/neutering, and more.
You may also want to include trial periods for new dogs where you observe them and determine if they are suited to your doggie daycare service.
When everyone understands what the expectations and procedures are, there will be no surprises.
You will want to research packages and pricing offered by other dog daycares in your area. Reviewing the competition can also help you find ways to offer standout services and unique features that will appeal to your target market. You can look at doggie daycares in other areas to see how the business model is evolving around the country.
Your marketing plan details who your pet parents' target market is, the best ways to reach potential pet owner customers, and how you will present your business to them.
To make money, you may wish to advertise, create business cards, print pamphlets to leave at veterinary offices and pet stores, and contact the media about special events you are planning. Promotional giveaways for pet owners like pens, leashes, poop bags, and water bottles with your name and logo on them could be effective.
A key component of marketing is creating an attractive website and building your social media presence. Working with a professional website builder or social media marketer can ensure you reach your audience with relevant and inviting content.
Your employees are the heart of your business and are key to your success. Your business plan will help determine how many employees you need to hire. Rely on your market research to help you determine salaries and benefits.
As an employer, it is important to understand laws about workplace discrimination, privacy, and safety and to have an employment contract and employee handbook.
You will need to create job descriptions, hire employees, train them, supervise them, and provide performance reviews and ongoing management.
Protect Your Business
As an entrepreneur, you are likely excited about your new business and the challenges and rewards ahead.
There may be a variety of issues you have questions about such as taxes, licensing, insurance, contracts, or hiring employees. Contact a business attorney now to get assistance with these topics.
If you are ready to start your business, you can let our trusted partner LegalZoom handle your business formation filing for $99 plus filing fees.
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