Starting a dog boarding business can be a rewarding venture, blending a love for dogs with sharp business savvy. The pet care industry is worth billions, with steady demand for boarding services during holidays, vacations, and work travel.
This guide will take you through the practical steps to validate your business idea, secure funding, obtain the right permits, and select a location to help you launch a successful dog boarding business in the U.S.
Step 1: Validate your idea and create a business plan
First, confirm there is a real need for your service. You can talk to local veterinarians and pet groomers about boarding gaps in the area. Create a simple survey with Google Forms and ask pet owners at dog parks what they look for in a boarding facility.
Next, analyze your direct competitors. Use Google Maps and Yelp to find all dog boarding businesses within a 15-mile radius. A frequent misstep is to only compare prices. Instead, note their full range of services, facility photos, and customer review patterns.
Estimate your startup costs
A clear financial picture is vital. Initial costs for a small to mid-size facility often range from $25,000 to over $100,000. Understanding this scope early helps you create a solid funding plan. Your budget should account for a few key areas.
- Facility & Renovation: $15,000 - $75,000 for deposits, rent, and modifications.
- Kennels & Equipment: $5,000 - $20,000 for enclosures, play structures, and flooring.
- Licensing & Insurance: $1,000 - $4,000 for initial premiums and permit fees.
- Initial Supplies & Marketing: $2,000 - $5,000 for food, cleaning products, and a website.
Here are 3 immediate steps to take:
- Draft a short survey for at least 20 local dog owners.
- List five local competitors, their prices, and three unique services each offers.
- Create a spreadsheet to budget for your major startup cost categories.
Step 2: Set up your legal structure and get licensed
First, protect your personal assets. You might want to form a Limited Liability Company (LLC). This structure separates your business and personal finances. An LLC also offers pass-through taxation, which means profits are taxed on your personal return, simplifying your paperwork.
Navigating permits and regulations
Your business will be regulated at federal, state, and local levels. Federally, you will need an Employer Identification Number (EIN) from the IRS. If you board animals for research or wholesale, you also need a USDA license under the Animal Welfare Act.
Next, check with your state's Secretary of State for a general business license. A frequent misstep is to stop there. Most cities or counties require a specific animal facility or kennel permit from the local health department or animal control. These can cost $100 to $500 and take 4-8 weeks to process.
Here are 3 immediate steps to take:
- Decide on a business name and register your LLC with your state.
- Apply for a free Employer Identification Number (EIN) on the IRS website.
- Contact your city clerk to get a list of all local kennel permit requirements.
Step 3: Secure insurance and manage risk
Choose the right insurance coverage
Protecting your business requires more than standard insurance. A frequent mistake is to assume a general liability policy is enough. It is not. You need specific coverage for the animals in your care.
- General Liability: Covers client slips and falls. Aim for at least $1 million in coverage.
- Animal Bailee/Professional Liability: This is vital. It covers injury, death, or loss of a dog.
- Commercial Property: Protects your building, kennels, and equipment from damage or theft.
- Workers’ Compensation: A legal requirement in most states if you hire even one employee.
Expect to pay between $1,500 and $5,000 annually for a comprehensive package. You might want to get quotes from providers like Pet Care Insurance, Mourer-Foster, and Business Insurers of the Carolinas, as they specialize in this field.
Plan for unique dog boarding risks
Your facility faces unique risks, from dog fights to the spread of kennel cough. Create clear operational protocols to manage these situations. This includes a strict health screening process for all incoming dogs and an established relationship with a local 24/7 emergency veterinarian.
Here are 3 immediate steps to take:
- Request quotes from three insurers that specialize in pet care businesses.
- Ask each provider to explicitly confirm "Animal Bailee" coverage is in your quote.
- Draft an emergency contact sheet with your primary and backup veterinarian information.
Step 4: Find a location and buy equipment
Your location choice impacts everything. Aim for at least 75-100 square feet of combined indoor and outdoor space per dog. Before you search for property, check your city’s zoning map for areas designated for "commercial animal establishments" or similar uses.
When you find a spot, pay close attention to the lease. A frequent misstep is to accept a standard commercial lease. You should negotiate a "use clause" that explicitly permits dog boarding and daycare activities to avoid future disputes with the landlord.
Purchase your core equipment
With a location secured, you can buy your equipment. Focus on durability and safety. Many new owners underestimate the wear and tear from daily use. Professional-grade items last longer and are safer for the dogs in your care.
- Kennel Enclosures: $300 - $1,200 per unit. Look for options from suppliers like Mason Company.
- Rubber Flooring: $7 - $12 per square foot. It is easier on dog joints and simple to clean.
- Fencing: $25 - $50 per linear foot for secure, 6-foot-tall outdoor fencing.
Here are 3 immediate steps to take:
- Contact your local planning department to confirm zoning for two potential locations.
- Ask a potential landlord about adding a specific "use clause" for animal care.
- Get a quote for 10 kennel enclosures from an industry supplier.
Step 5: Set up your payment system
Last-minute cancellations can hurt your revenue. You might want to require a 50% non-refundable deposit to book a spot, with the balance due at pickup. This policy protects your income and encourages clients to commit.
Choose your payment processor
You will want a simple way to accept cards. Some new owners choose systems with high monthly fees that cut into profits. Look for a solution with low transaction fees and no long-term contracts, especially when you are just starting out.
For dog boarding businesses that need to accept payments on-site or on-the-go, JIM offers a streamlined solution. With JIM, you can accept debit, credit and digital wallets directly through your smartphone - just tap and done.
At just 1.99% per transaction with no hidden costs or extra hardware needed, it's particularly useful for taking deposits during meet-and-greets. Other payment solutions often have commission rates between 2.5% and 3.5%, plus hardware costs.
Getting started is straightforward.
- Get Started: Download the JIM app for iOS.
- Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
- Access Funds: Your money is available right on your JIM card as soon as the sale is done - no waiting for bank transfers.
Here are 3 immediate steps to take:
- Draft your payment policy, including deposit and cancellation terms.
- Download the JIM app to explore its interface.
- Calculate the fee difference between JIM's 1.99% and a 2.9% competitor on a $500 boarding stay.
Step 6: Fund your business and manage finances
Explore your funding options
Your business plan is key to getting a loan. You might want to explore SBA loans. The 7(a) program offers up to $150,000 for new facilities, but lenders will want a credit score over 680 and a 10-20% down payment from you.
Another path is an SBA Microloan, which provides up to $50,000. These are great for equipment or initial supplies. Some owners make the mistake of only approaching big banks. You should also talk to local credit unions, which can be more flexible with new businesses.
Calculate your working capital
Funding is not just for startup costs. You need cash on hand for the first six months of operation. This is your working capital. Underestimating this amount is a frequent reason new businesses struggle. You should budget for at least $15,000 to $30,000.
Your six-month budget should include:
- Payroll for at least one employee
- Rent and utilities
- Insurance premiums
- Marketing and advertising costs
- Dog food, cleaning supplies, and other consumables
Here are 3 immediate steps to take:
- Use the SBA's Lender Match service to find local lenders.
- Create a spreadsheet detailing your working capital needs for six months.
- Gather your business plan and personal financial statements for a loan package.
Step 7: Hire your team and set up operations
Build your core team
Your first hire will likely be a Kennel Technician. They handle feeding, cleaning, and supervising playgroups. Pay for this role typically ranges from $14 to $18 per hour. A good candidate has experience with multiple dog breeds and temperaments.
While not always required, certifications make a candidate stand out. You might want to look for Pet First Aid and CPR training. Credentials from the Professional Animal Care Certification Council (PACCC) also show a high level of commitment.
Streamline your daily workflow
Many new owners try to manage bookings with a spreadsheet, which quickly becomes chaotic. You can use dedicated software from day one. Systems like Gingr, PetExec, or ProPet handle scheduling, client profiles, and vaccination records.
For safety, maintain a staff-to-dog ratio of 1-to-15 during group play. This industry benchmark helps prevent fights and ensures proper attention. Understaffing, especially during holidays, can lead to accidents and damage your reputation.
Here are 3 immediate steps to take:
- Draft a job description for a Kennel Technician, listing key responsibilities.
- Request a demo from two pet care software providers like Gingr or PetExec.
- Find a local Pet First Aid certification course for future staff training.
Step 8: Market your business and get clients
Build your online presence
Start with a free Google Business Profile. This gets you on Google Maps. Fill it out completely with photos and your hours. Encourage your first clients to leave reviews, as this builds trust faster than anything else.
Next, create Facebook and Instagram pages. Post daily photos and videos of happy dogs playing, with owner permission. Many new owners just post ads, but you should focus on content that shows a safe, fun environment.
Forge local partnerships
You can also connect with local veterinarians, groomers, and pet stores. Offer them a small referral fee for each client they send your way. A recommendation from a trusted vet is often the most effective marketing you can get.
When you run paid ads on platforms like Facebook, target dog owners within a 10-mile radius. A "50% Off First Stay" offer can work well. Aim for a customer acquisition cost (CAC) under $50 per new client initially.
Here are 3 immediate steps to take:
- Set up and fully complete your Google Business Profile.
- Create a list of five local vets and groomers to contact for partnerships.
- Draft a sample "50% Off First Stay" offer for a social media ad.
Step 9: Set your pricing and profit goals
Choose your pricing model
Most facilities charge a flat per-night rate, which often ranges from $40 to $60 in suburban areas. Your price should reflect your local market and service level. Some owners make the mistake of only offering one flat rate, which limits their revenue potential.
You might want to build a tiered structure. This allows you to capture more income from clients who want premium services. Consider these options:
- Package Deals: Offer a 10% discount for stays longer than seven nights or for multiple dogs from the same household.
- Add-on Services: Charge extra for individual walks ($15), basic grooming ($50), or special dietary handling ($5 per day).
- Peak Pricing: Increase your base rate by 15-20% during major holidays like Christmas and the Fourth of July.
Set your profit targets
With your pricing model in place, you can set profit goals. Aim for a gross profit margin of 15-25% after you cover direct costs like labor and supplies. To find your price, calculate your costs per dog per day and add your desired markup.
Revisit the competitor list you made in Step 1. Do not just copy their prices. If you offer a better staff-to-dog ratio or premium food, you can justify a price that is 10-15% higher than the local average. This positions you as a premium provider.
Here are 3 immediate steps to take:
- Set your standard per-night rate based on local competitor research.
- Create a list of three potential add-on services and their prices.
- Calculate your break-even point based on your estimated monthly costs.
Step 10: Maintain quality and scale your business
Set your quality standards
As you operate, you can encourage staff to pursue certifications from the Professional Animal Care Certification Council (PACCC). This demonstrates a commitment to high standards. It also gives clients peace of mind.
You should also track key metrics. A client retention rate above 80% shows you are delivering great service. Also, aim for an average online review score of 4.8 stars or higher. Some owners focus only on new clients, but repeat business is your foundation.
Know when to grow
Growth should be data-driven. You might be tempted to expand quickly, but wait until your facility consistently hits 85% occupancy for three non-holiday months. This confirms you have sustained demand, not just a seasonal spike.
When your 1-to-15 staff-to-dog ratio feels strained, it is time to hire another Kennel Technician. As you add clients and staff, management software like Gingr or PetExec will help you manage schedules and records without the chaos.
Here are 3 immediate steps to take:
- Set a goal to get one staff member PACCC certified within the first year.
- Start tracking your client retention rate and average review score monthly.
- Calculate your maximum occupancy and set an 85% alert to trigger expansion planning.
You have the steps to launch your dog boarding business. The key is to build trust with every client and every dog that walks through your door. Your reputation for safety and care will be your greatest asset. Now, you are ready to take the first step.
As you welcome those first clients, you will need a simple way to handle payments. JIM turns your phone into a card reader for a flat 1.99% fee, with no extra hardware. Download JIM to get started.
