How to Start a Pet Boarding Business ($907K a Year)

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#petboarding #businessideas #entrepreneur #entrepreneurship
There is a massive opportunity in the pet boarding business field! Check out how I would start this business:
1. You need to know your projected expenses:
- You will need to either buy or lease a building. This will cost you around $18 per sqft per year to lease. For a 6,000 sqft building, this would cost you $108,000 a year. Your monthly lease payment would be $9,000 a month.
- You will need capital to build out your boarding location. This would include the kennels, play area, etc. This would cost around $150,000
- If you don't have the $150,000 on hand, you would need to put 25% down which is $37,500. Your monthly loan would be $2,390.
Tallying up all of your expenses:
- $37,500 down payment
- $108,000 yearly lease
- $26,290 loan payment
--TOTAL FIXED EXPENSES: $171,790

2. How can we be profitable?
Average pricing per day:
- $35 a day for daycare
$55 a day for overnight stay
Our expenses broken down to per day is $511 a day.
- $171,790 a year, $14,315 a month, $3,578 a week, = $511 a day
To breakeven, we will need:
10 dogs overnight
or
15 dogs for daycare.
Average daily revenue:
30 dogs overnight = $1,650
30 dogs daycare = $1,050
TOTAL DAILY REVENUE: $2,700 a day.
Other expenses: Employees. $15 an hour with 3 employees = $45 an hour for labor. 12 hours a day would put us at $540 a day in labor cost.

PROFIT:
$2,700 a day in revenue
$511 a day in Loan, Downpayment, Lease
$540 a day in Labor
===$1,649 profit per day.
===$11,543 profit per week
===$46,172 profit per month
===$554,064 profit per year
Gross Revenue: $907,200

3. Think of all the ways in which it won't work and create strategies to limit those things:
- No dogs show up. You failed on the marketing. No one knows you are in business. Run a local marketing campaign.
- No Workers. You failed to create a hiring strategy.
- No demand for service. You aren't near a city or large town that needs a dog boarder.
- No Returning Customers due to bad reviews. Take care of the customer.

4. Legal Up. Create an LLC, Buy Insurance, Create a customer contract/waiver.

5. Take action and start!
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You should bring in people who understand what its like to work with dogs but most importantly, especially if you have about 30 dogs in such a small space, you want to be safe and have people working with you with some experience and knowledge of dogs and how they work in one place. Basically, you dont want to have someone who can read.... "Oh shoot, that dog is looking angry and about to attack that other dog."

jessical.
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What about utilities, insurance and taxes?

brucedk
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Would help viewers if you put numbers on the side as you break down

DogManTee
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The first of employees is double with taxes, workers com, other insurance, health insurance, benefits

hilbillie