Business ideas
8 min read

How to Start a Profitable Pet Boarding Business [11 Steps]

Learn how to start a profitable pet boarding business with our 11+ step guide. From marketing to operations, we cover it all. Start your business today! #petboarding #entrepreneurship #smallbusiness
Newfoundr

By Nick Cotter
Updated Feb 02, 2024

image of a pet boarding business
This page may feature products from our affiliate partners, which could influence the products we discuss due to potential compensation. Despite this, our evaluations are impartial, based solely on our independent analysis. The content here is intended for informational purposes and should not be seen as legal advice. For professional guidance, consulting with a legal expert is recommended.
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1. Perform market analysis.

Before diving into the pet boarding industry, a thorough market analysis is essential to understand the demand, competition, and potential for growth. This initial step lays the groundwork for a successful business by providing insights into the needs and preferences of your target market. Here are key points to consider:

  • Research local demographics to determine the number of pet owners in your area, focusing on those who are likely to require pet boarding services, such as frequent travelers or full-time employees.
  • Analyze existing pet boarding services nearby to assess their offerings, pricing, capacity, and customer reviews, helping to identify gaps in the market and opportunities for differentiation.
  • Study industry trends, such as the rise of luxury pet boarding or the increase in pet ownership, to predict future demand and tailor your services accordingly.
  • Engage with pet owners through surveys, social media, or community events to gain direct feedback on their needs and preferences for pet care services.
  • Review zoning laws and regulations to ensure your chosen location is suitable for pet boarding operations and to understand the legal requirements you'll need to meet.
image of a pet boarding business

Are pet boarding businesses profitable?

Yes, pet boarding businesses can be profitable when managed properly. To maximize profits, pet boarding businesses should have a strong online presence and marketing strategy in order to reach potential customers. Additionally, offering additional services such as dog grooming and playcare can bring in more revenue for the business. Furthermore, being aware of local demand for pet boarding and understanding customer needs can also help increase profits.

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2. Draft a pet boarding business plan.

Starting a pet boarding business requires careful planning and a clear vision. A well-crafted business plan is essential to outline your strategies, define your objectives, and map out the steps to success. Here are the key components to consider when drafting your pet boarding business plan:

  • Executive Summary: Summarize your business concept, mission statement, and the services you intend to offer, along with a snapshot of your financial projections and growth plans.
  • Market Analysis: Research the local demand for pet boarding services, identify your target market, and analyze competitors to find your niche.
  • Services and Pricing: Define the range of services you will provide, such as overnight boarding, daycare, grooming, and any unique offerings. Set competitive pricing strategies that reflect the quality of your services.
  • Marketing Plan: Develop a marketing plan to reach your target audience, including branding, promotional strategies, online presence, and community engagement.
  • Operations Plan: Outline the day-to-day operations, including facility requirements, staffing needs, standard operating procedures, and equipment.
  • Financial Projections: Provide detailed financial projections, including startup costs, operating expenses, revenue streams, and break-even analysis to ensure financial feasibility.
  • Risk Management: Identify potential risks and devise contingency plans to address them, ensuring the sustainability of your business.

How does a pet boarding business make money?

Pet boarding businesses make money by charging customers a fee to house their pets in a safe and comfortable environment. These fees can vary depending on the services provided, such as feeding, exercising, bathing, and playing with the pet. This kind of business usually targets pet owners who travel frequently or cannot provide adequate care to their pets while they are away. An example of a target audience for a pet boarding business could be long-distance truck drivers who need a safe place for their dog or cat while they are away for weeks at a time.

3. Develop a pet boarding brand.

Creating a strong brand for your pet boarding business is essential in establishing a memorable identity and attracting pet owners. Your brand should reflect the quality and experience customers can expect when they trust you with their beloved pets. Consider these key aspects to develop your unique pet boarding brand:

  • Define Your Brand Mission: Articulate the purpose of your business and what sets it apart from competitors. The mission should resonate with pet owners and reflect your dedication to providing top-notch care.
  • Choose a Memorable Name and Logo: Select a name that is easy to remember, and design a logo that visually communicates your brand's ethos. Ensure they both align with the feelings you want your brand to evoke.
  • Identify Your Target Audience: Understand who your customers are and tailor your brand to meet their specific needs and preferences. This includes considering the types of pets you will board and the services you offer.
  • Develop a Consistent Visual and Verbal Identity: Use consistent colors, fonts, and messaging across all marketing materials and online platforms to establish brand recognition and convey professionalism.
  • Create an Engaging Online Presence: Build a user-friendly website and maintain active social media profiles to connect with customers and showcase your brand's personality and values.
  • Foster Brand Loyalty: Offer exceptional service and create a community around your brand, encouraging word-of-mouth referrals and repeat business.

How to come up with a name for your pet boarding business?

When it comes to creating a memorable and catchy name for your pet boarding business, it is important to consider the audience and what services are offered. Think of a name that is meaningful and helps to describe the type of services you provide. Consider using words such as “pet” and “boarding” or simply use parts of your own name or a combination of both. Additionally, research similar businesses in your area to help you create something unique. With a little bit of creativity, you should be able to come up with the perfect name for your business.

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4. Formalize your business registration.

Once you've laid the groundwork for your pet boarding business, it's time to formalize your venture with the appropriate authorities. This step is crucial to ensure your business is legally recognized and operates within the framework of local, state, and federal regulations. Here's how to navigate the registration process:

  • Choose a business structure that best suits your needs, such as a sole proprietorship, partnership, LLC, or corporation, and file the necessary paperwork with your state's Secretary of State office or equivalent.
  • Obtain an Employer Identification Number (EIN) from the IRS for tax purposes, especially if you plan to hire employees.
  • Register your business name through a Doing Business As (DBA) filing if your business name is different from your legal name.
  • Apply for the necessary permits and licenses, which may include a kennel license, a general business license, and zoning permits, depending on your location.
  • Understand and comply with local health and safety regulations to ensure the well-being of the pets in your care, which might include inspections and specific operational guidelines.
  • Consider purchasing insurance policies tailored to pet businesses to protect against liability and other risks associated with caring for animals.

Resources to help get you started:

Unlock valuable insights and guidance for launching and managing a pet boarding business with these critical resources:

  • IBISWorld Reports: Offers comprehensive market research reports, including industry statistics, analysis, and growth forecasts for the pet boarding sector. Website
  • Pet Boarding and Daycare Magazine: A leading publication featuring articles on management, operations, and industry trends for pet boarding businesses. Website
  • International Boarding & Pet Services Association (IBPSA): Provides resources, education, and networking opportunities for pet care professionals, with a focus on boarding services. Website
  • The Balance Small Business: Offers guides and articles on starting and running a pet boarding business, including tips for success and avoiding common pitfalls. Website
  • MarketResearch.com: Features detailed reports and market analyses for the pet industry, including niche segments like pet boarding and daycare. Website

5. Acquire necessary licenses and permits for pet boarding.

Starting a pet boarding business requires careful compliance with local laws and regulations to ensure the safety and well-being of the pets in your care. You will need to acquire specific licenses and permits, which can vary depending on your location and the services you offer. Here’s a guide to help you navigate this process:

  • Research Local Regulations: Check with your city or county government to understand the specific pet boarding requirements in your area. This may include zoning laws, health and safety codes, and animal care standards.
  • Obtain a Business License: Apply for a general business license to operate legally. This is typically issued by your city or county licensing department.
  • Secure a Kennel Permit: If required by your jurisdiction, obtain a kennel permit that allows you to house multiple animals. This may involve an inspection of your facility to ensure it meets all regulations.
  • Consider Animal Handler’s Permit: Some localities require individuals who handle animals to have a special permit, ensuring they are trained in proper animal care and control.
  • Comply with Health Requirements: Ensure that your facility meets all health and sanitation standards. This might involve regular veterinarian inspections and vaccinations for the pets.
  • Review Additional Permits: Depending on your services, you might need additional permits, such as a grooming license if you offer pet grooming.

What licenses and permits are needed to run a pet boarding business?

To run a pet boarding business, you will likely need a business license, tax identification number, and zoning permit. You may also need additional permits and licenses depending on your state or local regulations, such as a food service permit, fire safety certificate, and a federal employer identification number.

6. Open a business bank account and secure funding as needed.

When starting a pet boarding business, establishing financial order is crucial for smooth operation and growth. Opening a business bank account separates personal finances from business transactions, promoting professionalism and clarity. Additionally, securing funding is essential for covering startup costs and ensuring liquidity. Here's how to proceed:

  • Research Banks: Compare different business bank accounts to find one with favorable fees, good customer service, and convenient access.
  • Prepare Documents: Gather necessary paperwork, including your business license, EIN, and incorporation documents, to open the account.
  • Apply for an Account: Visit the bank of your choice and apply for a business checking account, making sure to review all terms and conditions.
  • Explore Funding Options: Consider various funding sources such as small business loans, investors, crowdfunding, or personal savings to finance your pet boarding business.
  • Create a Budget: Develop a detailed budget that accounts for all startup and operational costs to understand your funding needs.
  • Secure Funding: Apply for chosen funding with a strong business plan that showcases your business's potential and how you intend to repay borrowed funds.

7. Set pricing for pet boarding services.

Setting the right pricing for your pet boarding services is crucial to the success of your business. It's important to balance competitive rates with the quality of care you provide. Here are some guidelines to help you establish your pricing:

  • Research Competitors: Look at prices of nearby pet boarding services to ensure your rates are competitive. Factor in the amenities and services they offer compared to yours.
  • Cost Analysis: Calculate your costs for supplies, utilities, staff wages, insurance, and facility maintenance. Your prices should cover these costs while allowing for a reasonable profit margin.
  • Value-Based Pricing: Consider the value of specialized care, extra amenities, or unique services you offer and set prices that reflect this added value.
  • Tiered Pricing Structure: Offer different levels of service, such as standard, premium, and luxury boarding, to cater to a range of client budgets and needs.
  • Discounts and Packages: Create pricing incentives for extended stays, multiple pets, or off-peak seasons to encourage longer bookings and repeat customers.
  • Transparency: Ensure your pricing is clear and communicated upfront to avoid misunderstandings and build trust with your clients.
  • Regular Reviews: Periodically review your pricing to keep up with changes in the market, cost of living increases, and to reflect the growing expertise and reputation of your business.

What does it cost to start a pet boarding business?

Initiating a pet boarding business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $$23,000/month for launching such an business. Please note, not all of these costs may be necessary to start up your pet boarding business.

8. Acquire pet boarding equipment and supplies.

Starting a pet boarding business requires careful planning and the acquisition of various equipment and supplies to ensure the safety and comfort of the pets in your care. From cozy bedding to feeding supplies, each item plays a crucial role in creating a welcoming and professional environment. Below is a list of essential boarding equipment and supplies you should consider acquiring:

  • Enclosures: Purchase or build secure, size-appropriate kennels, crates, or runs for dogs and cats, with easy-to-clean surfaces.
  • Bedding: Acquire comfortable, washable bedding that is resistant to chewing and scratching.
  • Feeding Supplies: Stock up on food and water bowls, preferably stainless steel or ceramic, and airtight containers for food storage.
  • Sanitation Products: Maintain a stock of disinfectants, deodorizers, waste disposal bags, and litter for cats.
  • Grooming Tools: Include brushes, shampoos, nail clippers, and any other grooming supplies for daily maintenance.
  • Play Equipment: Provide toys, scratching posts for cats, and agility equipment for dogs to keep pets entertained.
  • First Aid Kit: Keep a fully stocked first aid kit for any minor injuries or health concerns that may arise.
  • Office Supplies: Organize administrative tasks with computer software for bookings, payment processing, and record-keeping.
  • Security Systems: Install cameras and secure fencing to ensure pet safety and give owners peace of mind.

List of software, tools and supplies needed to start a pet boarding business:

  • Accounting software: $15/month for the basic version; $20/month for a more robust version
  • Pet tracking software: $25/month
  • Kennel gates & cages: $100+ each
  • Kennel & cage liners: $20-50/each
  • Outdoor pet enclosures: $300+ each
  • Leashes & collars: $10-20/each
  • Cleaning supplies: $25-50/month
  • Food & treats: Varies greatly depending on type and brand.
  • Feeding and water bowls: $2-10 each
  • Toys and comforts: Varies greatly depending on type and brand.

9. Obtain business insurance for pet boarding, if required.

Ensuring your pet boarding business is adequately insured is crucial for protecting your venture against unforeseen events and liabilities. Different types of insurance policies can cover various aspects of the business, from property damage to legal liabilities. Here are some steps to help you secure the right insurance:

  • Research and understand the types of insurance available for pet boarding businesses, such as general liability, commercial property, and professional liability insurance.
  • Consult with an insurance agent or broker who specializes in pet-related businesses to get tailored advice for your specific needs.
  • Evaluate the risks associated with your pet boarding business to determine the levels of coverage you require.
  • Compare quotes from multiple insurance providers to find the most comprehensive coverage at a competitive rate.
  • Ensure that your policy includes coverage for any unique services you offer, such as grooming or training.
  • Review and understand the terms and conditions of your insurance policy, including any exclusions or deductibles.
  • Keep your insurance documents accessible and review your policy annually or whenever there are significant changes to your business operations.

10. Begin marketing your pet boarding services.

Now that your pet boarding business is set up and ready to welcome furry guests, it's time to spread the word and attract pet owners. Marketing is crucial for building awareness of your services and establishing trust with potential clients. Here are some effective strategies to get started:

  • Create a professional website that showcases your facility, services, and pricing. Include high-quality images and testimonials from satisfied customers.
  • Engage with the local community on social media platforms such as Facebook, Instagram, and Twitter. Share updates, pet care tips, and behind-the-scenes glimpses into your daily operations.
  • Partner with local pet businesses, veterinarians, and pet supply stores to cross-promote services. Consider leaving flyers or business cards at their locations.
  • Offer an introductory discount or a referral program to encourage first-time customers and word-of-mouth recommendations.
  • Attend local pet events, fairs, and trade shows to network with pet owners and distribute promotional material.
  • Invest in online advertising through Google Ads or social media platforms to target pet owners in your area.
  • Ask satisfied customers to leave positive reviews on platforms like Yelp, Google My Business, and Facebook to enhance your credibility and online presence.
>> MORE:

What licenses and permits are needed to run a pet boarding business?

  • Accounting software: $15/month for the basic version; $20/month for a more robust version
  • Pet tracking software: $25/month
  • Kennel gates & cages: $100+ each
  • Kennel & cage liners: $20-50/each
  • Outdoor pet enclosures: $300+ each
  • Leashes & collars: $10-20/each
  • Cleaning supplies: $25-50/month
  • Food & treats: Varies greatly depending on type and brand.
  • Feeding and water bowls: $2-10 each
  • Toys and comforts: Varies greatly depending on type and brand.

11. Expand your pet boarding business.

As your pet boarding business thrives, you might find yourself ready to take it to the next level. Expanding your business can involve a variety of strategies, from increasing capacity to diversifying services. Here are some key steps to consider when you're looking to grow your pet boarding operation:

  • Assess your current business performance and identify areas with potential for growth, such as offering specialized care for different types of pets or adding luxury boarding options.
  • Invest in marketing efforts to reach a broader audience, such as enhancing your website, engaging in social media campaigns, or collaborating with local veterinarians and pet stores.
  • Consider offering additional services like grooming, training, or pet transportation to create a one-stop-shop experience for pet owners.
  • Explore partnerships with pet-related businesses, which can provide cross-promotion opportunities and attract new clients.
  • Upgrade your facilities to accommodate more pets comfortably, ensuring that any expansion still maintains high standards of care and safety.
  • Look into franchising options or opening new locations if your brand has gained significant recognition and following.
  • Train and hire additional staff to maintain quality service as your client base grows, ensuring they share your passion for animal care.