Starting a dog daycare business is rewarding but requires careful planning. This guide walks you through everything you need to know, from licensing to your first customers.
Step 1: Research Your Local Market
Before investing, understand your competition and demand:
- Survey local pet owners about their daycare needs and price sensitivity
- Visit existing facilities to understand services and pricing
- Check demographics - areas with high dual-income households and dog ownership are ideal
- Identify gaps - perhaps there’s no daycare offering evening hours or specialized small-dog care
Step 2: Create a Business Plan
Your business plan should cover:
- Startup costs: Facility lease/purchase, renovations, insurance, licensing, equipment
- Operating costs: Staff wages, utilities, supplies, software, marketing
- Revenue projections: Based on capacity, pricing, and realistic occupancy rates
- Break-even analysis: When will you become profitable?
📊 Crunch your numbers: Use our free Pet Business Revenue Calculator to model your facility’s income and profit across all your services — with seasonal demand and capacity planning included.
Step 3: Choose Your Location and Facility
Key considerations for your facility:
- Zoning compliance: Many areas have specific zones where kennels/daycares are permitted
- Space requirements: Typically 75-100 sq ft per dog for indoor play areas
- Outdoor access: Secure, fenced outdoor areas are highly desirable
- Ventilation and drainage: Critical for hygiene and odor control
- Separate areas: For different size dogs, rest areas, and isolation if needed
Step 4: Get Licensed and Insured
Requirements vary by location, but typically include:
- Business license and registration
- Kennel/daycare license from local animal control
- Health department permits if offering grooming
- Liability insurance - essential for any pet business
- Worker’s compensation once you have employees
Step 5: Set Up Operations
Pricing Structure
Consider offering:
- Half-day and full-day rates
- Multi-day packages at a discount
- Sibling discounts for multiple dogs
- Add-on services (grooming, training, enrichment)
Staff Requirements
- Dog handler to dog ratio: Industry standard is 1:10 to 1:15
- Certifications: Pet first aid, dog behavior training
- Background checks: Essential for anyone handling animals
Technology Setup
Modern daycare operations need:
- Dog daycare software for bookings and management
- Online payment processing
- Customer portal for bookings and updates
- Automated reminders for vaccinations and appointments
Step 6: Establish Safety Protocols
- Vaccination requirements: Core vaccines plus kennel cough
- Temperament assessments: Evaluate each dog before accepting
- Playgroup management: Group dogs by size, play style, and energy level
- Emergency procedures: Vet relationships, evacuation plans, incident documentation
Step 7: Market Your Business
Pre-Launch
- Build a professional website with online booking
- Create social media accounts
- Partner with local vets, pet stores, and trainers
- Offer early-bird discounts for charter members
Ongoing Marketing
- Encourage reviews from happy customers
- Share photos and videos of happy dogs (with permission)
- Run referral programs
- Participate in local pet events
Common Mistakes to Avoid
- Underpricing - Calculate your true costs and price accordingly
- No software systems - Manual processes don’t scale
- Inadequate staffing - Tired staff make mistakes
- Ignoring behavior issues - One aggressive dog can ruin your reputation
- Poor ventilation - Odor is the #1 complaint about pet facilities
How Much Does It Cost to Start a Dog Daycare?
Startup costs vary widely based on location and facility type:
| Category | Budget Range |
|---|---|
| Facility (lease + renovations) | $20,000 - $100,000+ |
| Insurance | $2,000 - $5,000/year |
| Equipment & supplies | $5,000 - $15,000 |
| Marketing | $2,000 - $10,000 |
| Software & technology | $50 - $200/month |
| Working capital | $10,000 - $30,000 |
Total estimated startup: $40,000 - $150,000+
Ready to Get Started?
The right software can make or break your daycare operations. PetCare.Software handles bookings, vaccination tracking, customer communication, and payments - so you can focus on the dogs.
Start your free trial and see how easy daycare management can be.
