How to Start a Kennel Business

Part 1 - How to start a Kennel business - Background

Many dog owners, for a variety of reasons, don’t bring their dogs with them on trips. A kennel business gives dog owners a safe place to leave their dogs while they’re away. At a kennel, dogs have a safe place to rest, are fed and get exercise.

Our guide is in 3 parts:

• Part 1 - How to start a Kennel business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a kennel business?

There are many costs associated with starting up a kennel business. The two largest costs are usually securing a facility for the business and finding insurance for it.

A facility should have room for crates, several runs for individual dogs and at least one large play area, where dogs may run around alone or with other dogs. The crates should be indoors or in dog houses so that dogs are sheltered during inclement weather, and there also ought to be a small indoor play area if the main area is outdoors.

When looking at insurance policies, kennel owners should pay careful attention to each policy’s exclusions. Many policies will exclude certain dog breeds from their coverages. In order to accept all types of dogs, kennels should have a policy that doesn’t exclude any breeds.

Additional startup expenses include purchasing crates, food bowls, leashes, dog food and similar items.

Kennel business owners that are trying to keep their initial costs minimal may want to look for a facility in a rural area and only start with enough equipment to keep a few dogs. Boarding rates at kennels in rural areas, however, are typically lower than the rates that kennel businesses near airports and major cities charge.

What are the ongoing expenses for a kennel business?

A kennel business’ primary ongoing expenses include its insurance premiums, license fees (if any), and the occasional maintenance that’s needed to repair fences or other facilities. Of these, insurance is often the largest cost.

Who is the target market?

The ideal customer is a dog owner who frequently travels, either for work or leisure, and has discretionary income. Such a person will need their dog watched frequently, and they have money to pay someone to board their pooch. A dog owner who has multiple dogs will need to pay even more, as most kennel businesses charge for each dog.

How does a kennel business make money?

Kennel businesses are paid a flat amount to house dogs for a set period of time. Dog owners may leave their dogs for anywhere from one night to a month or longer.

How much can you charge customers?

Like hotels, kennel businesses’ rates vary depending on how many amenities they provide. Kennels that provide no-frills accommodations for dogs typically charge between $12 and $26 per dog, per day. These kennels often include little more than a cement floor, and fenced-in run or play area. Kennels that are a little nicer usually charge $22 to $55 per dog, per day, and a few extremely high-end kennels charge as much as $110 per dog, per day. The fanciest kennels have rugs, actual furniture, fancy food, comfortable beds and even art for the dogs they board.

It’s also common to vary rates according to the weight of a dog, with large dogs paying as much as 50 percent more than small dogs. Some kennels provide a discount for boarding more than one dog at a time.

How much profit can a kennel business make?

A kennel business’ earning potential is limited by the rates for boarding dogs in its region and how many dogs it can hold. A low-end kennel that is able to host up to 30 dogs and charges $20 per night can bring in as much as $600 in one night. The kennel may not always be full, though. On average, it might have 10 dogs every night, thus earning an average of $200 per night. Over the course of a year, that would add up to $73,000. A fancier kennel could earn much more, possibly several hundred thousand dollars in a year.

How can you make your business more profitable?

Kennel businesses can increase their revenue by providing add-on services. Some common add-ons including baths, premium food, extra play time, special treats and medication administration. Kennels can either charge extra for these services, or provide these services as complimentary services but increase their per-night rates.

Day-to-Day and Growth

What happens during a typical day at a kennel business?

Kennel business owners spend much of their time looking after dogs. This includes putting dogs to bed at night, getting them up in the morning, letting them out as needed, feeding them, exercising them and playing with them. It also involves cleaning up after them as necessary.

When not spending time directly interacting with dogs, owners often take care of administrative items and repair any damaged kennels or fences.

What are some skills and experiences that will help you build a successful kennel business?

Kennel business owners should be comfortable around dogs and know how to interact with a wide array of dog breeds and personalities. Owners who don’t have a lot of experience around dogs may want to volunteer at their local SPCA or another animal shelter.

While there aren’t any certification requirements for kennel business owners, owners may want to take a certificate or associate degree program in small animal care. These programs teach students how to safely treat and handle dogs and other small animals. There are programs offered at schools throughout the country. There aren’t many online programs available, though, because learning to safely handle animals is a hands-on activity.

Kennel owners should also have a relationship with a local veterinarian who provides emergency vet services for dogs, in case a dog has medical issues while boarding. Business owners can build this relationship by contacting a local vet to make sure they will take dogs on an emergency basis.

What is the growth potential for a kennel business?

A kennel business can be as small as a one-person operation or as large as a national chain. Many independent kennels have just one location, while national chains often operate through franchise structures.

How and when to build a team

A kennel business can be run by one person, but it also can grow to have several employees. Having multiple employees lets the owner of the kennel business be less involved in the kennel’s day-to-day operations. Many kennel business owners hire their first employee when they can no longer take care of all the dogs that come to their kennel, and then continue to hire additional employees as needed.

Part 2 - Is a Kennel business the right fit for you?

Part 3 - Action plan to launch your Kennel business in 90 days