Dog Daycare Business Plan Template 🐶 [Updated 2021]

Dog Daycare Business Plan Template

Written by Dave Lavinsky Dog Daycare Business Plan Template

Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their dog daycare businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a dog daycare business plan template step-by-step so you can create your plan today.

What Is a Business Plan?

A business plan provides a snapshot of your dog daycare business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.


Why You Need a Business Plan

ChihuahuaIf you’re looking to start a dog daycare or grow your existing dog daycare you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your dog daycare in order to improve your chances of success. Your dog daycare business plan is a living document that should be updated annually as your company grows and changes.


Source of Funding for Dog Daycare Businesses

With regards to funding, the main sources of funding for a dog daycare are bank loans, personal savings, credit cards and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

Another common form of funding for a dog daycare is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a dog daycare. They might consider funding a chain, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.

If you’d like to quickly and easily complete your business plan, download our proven business plan template here.

Dog Daycare Business Plan Template

Your business plan should include 10 sections as follows:


Executive Summary

dog daycareYour executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of dog daycare business you are operating and the status; for example, are you a startup, do you have a dog daycare that you would like to grow, or are you operating a chain of dog daycare businesses.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the dog daycare industry. Discuss the type of dog daycare you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.


Company Analysis

In your company analysis, you will detail the type of dog daycare business you are operating.

For example, you might operate one of the following types:

  1. 100% cage-free: this type of dog daycare allows dogs to freely roam the facility, under the supervision of a staff member.
  2. Cage-free play: this type of dog daycare typically cages the dogs for a portion of the day, and allows dogs to play outside their cages at certain times.
  3. Kennel: this type of dog daycare offers cages or runs where the dog remains for the entirety of the stay.
  4. Indoor-only dog daycare: this type of dog daycare has indoor-only facilities, where dogs interact and play indoors, as well as relieving themselves in a designated indoor area.
  5. Indoor and outdoor dog daycare: this type of dog daycare has both indoor and outdoor areas for dogs to enjoy.
  6. Extended-stay dog boarding: this type of dog daycare provides care for an extended time while the owners are on vacation.

In addition to explaining the type of dog daycare you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new facility openings, etc.
  • Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.


Industry Analysis

Dog Daycare BedsIn your industry analysis, you need to provide an overview of the dog daycare business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the dog daycare industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards 100% cage-free dog daycare, it would be helpful to ensure your plan calls for this accommodation.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your dog daycare business plan:

  • How big is the dog daycare business (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your dog daycare. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.


Customer Analysis

The customer analysis section of your dog daycare business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: pet owners aged 30 to 49; pet owners aged 50 to 64, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of dog daycare you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing promotions than millennials.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most dog daycares primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

If you plan to offer extended-stay dog boarding as well, you may want to consider segmenting customer behaviors as well. Local dog owners who are planning a vacation would be a targeted segment for marketing and advertising.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Two dogsYour competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other dog daycare businesses.

Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors, such as dog walkers. You need to mention such competition to show you understand that not everyone who owns a dog uses a dog daycare each day.

With regards to direct competition, you want to detail the other dog daycares with which you compete. Most likely, your direct competitors will be dog daycares located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

  • What types of customers do they serve?
  • What services do they offer?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to stand outside your competitors’ locations and ask customers as they leave what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide superior dog daycare services?
  • Will you provide dog daycare services that your competitors don’t offer?
  • Will you make it easier or faster for customers to use your services (e.g., reservations via a mobile app)?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.


Marketing Plan

Dog Daycare PlanningTraditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a dog daycare business plan, your marketing plan should include the following:

Product: in the product section you should reiterate the type of dog daycare that you documented in your Company Analysis. Then, detail the specific services you will be offering. For example, in addition to regular dog daycare, will you offer items such as premium food, a water park, one-on-one staff attention, grooming, etc.?

Price: Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place: Place refers to the location of your dog daycare. Document your location and mention how the location will impact your success. For example, is your dog daycare located next to a heavily populated office building, or gym, etc. Discuss how your location might provide a steady stream of customers.

Promotions: the final part of your dog daycare marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Making your dog daycare’s front store extra appealing to attract passing customers
  • Advertising in local papers and magazines
  • Reaching out to local bloggers and websites
  • Flyers
  • Partnerships with local organizations (e.g., pet store purchasers get a free day of dog daycare with each $100+ purchase)
  • Social media marketing
  • Local radio advertising
  • Banner ads at local venues


Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your dog daycare such as check-in, procuring supplies, keeping the facility clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.


Management Team

To demonstrate your dog daycare’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the dog daycare business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in dog daycares and/or successfully running small businesses.


Financial Plan

Dog TrainingYour financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement: an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 50 customers per day or 100? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets: While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your dog daycare, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement: Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a dog daycare:

  • Location build-out including design fees, construction, etc.
  • Cost of equipment like kennels, dog beds, activity centers, etc.
  • Cost of food and treats and maintaining an adequate amount of supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses



Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your facility design blueprint or location lease.


Dog Daycare Business Plan Summary

Dog Daycare OutsidePutting together a business plan for your dog daycare is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the dog daycare business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful dog daycare.

Finish Your Dog Daycare Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your dog daycare business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Click here to finish your dog daycare business plan today.


OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how a Growthink business plan consultant can create your business plan for you.


Dog Daycare Business Plan FAQs

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Dog Daycare Business Plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of dog daycare business you are operating and the status; for example, are you a startup, do you have a dog daycare that you would like to grow, or are you operating a chain of dog daycare businesses.


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