If you’re passionate about dogs, why not turn that love into a thriving business? Starting a dog daycare lets you spend your days with furry companions while providing a much-needed service for busy pet owners. Not only is it a rewarding way to care for dogs, but it’s also a great opportunity to build a profitable business. The biggest challenge? Knowing where to begin. That’s why we’ve put together this guide—so you know exactly how to start a dog daycare business.
Table of Contents
How To Open A Dog Daycare
Here is a step-by-step guide about opening your business, from the initial research stage to opening day:
1. Do Your Research
The pet care industry is booming and areas such as dog daycares can have a lot of competition. It’s important to see what the demand is for such services in your area by analyzing industry reports and pet ownership trends near you. Depending on the results you may have to switch location to a market that’s less oversaturated.
People are searching for someone to watch their dog that they can trust. Determine common pain points in this industry and how your services can address them and put your customers at ease that their dogs are in good hands.
Also, address any service gaps that will help you stand apart from your competitors.
2. Develop A Business Plan
This step is essential for planning not only where you want your business to go but also what services you’ll offer, what supplies you’ll need, and how you will generate a profit. A business plan provides a detailed outline covering key aspects such as your business concept, the market you’re entering, services and pricing strategy, business structure and legal considerations, facility and operation plans, marketing and customer acquisition strategies, financial plans and projections, and future growth plans.
For a more in-depth look at what a business plan should include, check out this guide on writing a business plan from the Small Business Association.
3. Secure Financing
With your business plan, you can pitch your idea to investors, banks, and more to secure financing to open your business. There are several different options for financing available that will allow you to begin leasing a facility, purchasing equipment, and launching your doggy daycare.
Small Business Loans
The Small Business Administration (SBA) offers loan programs like the 7(a) loan program and Microloans that provide lower interest rates and longer repayment terms to help those just getting started. You can also obtain a traditional bank loan or borrow from online lenders, but these are usually tougher to acquire and pay for than loans front he SBA.
Grants to Open A Dog Daycare
There are some grants available to help you start your dog daycare business through local government programs, private organizations, or pet industry initiatives.
Personal Financing
You can fund the business yourself, but this would include building up lots of savings, taking out a home equity loan, or retirement account loans. It’s important to have a balance of financing methods in this case to avoid too much personal financial risk.
Investors & Partnerships
Your business plan should include information that will help you pitch your doggy daycare to potential investors and partners. While you will have to share equity in the business, this does help spread out financial risk.
Crowdfunding
Websites like Kickstarter or GoFundMe allow people to donate money to help you start your business.
Credit
A business credit card can help cover initial expenses and a business line of credit offers flexible borrowing options based on your needs. This can help you break up some of they payments and also provide you with rewards that help you make future purchases for your business.
4. Find The Right Location
This is one of the most crucial steps as the location impacts your business’s accessibility, visibility, and overall success. The goal is to find an area that isn’t oversaturated with dog daycare businesses where you can provide unique value. You’ll also need to evaluate properties for visibility and accessibility and ensure that the space meets legal and operational requirements.
Zoning Regulations
Once you’ve settled on the best area for your business, you need to research zoning laws to determine which properties are properly zoned for commercial use that would allow you to open your doggy daycare.
Accessibility & Convenience
As you visit potential properties, make sure that the location makes it easy for pet owners to drop off and pick up their dogs. Take a look at what is nearby. A property by pet stores, residential neighborhoods, dog parks, or another area that may have a high number of pet owners is ideal. Choose a location with ample parking to increase the amount of customers you can accommodate.
Facility Size & Layout
What does the interior of your future facility look like? It’s important to ensure there’s plenty of space for both indoor and outdoor play areas, comfortable kennels, grooming stations, and storage. The layout should allow dogs to move freely while maintaining proper separation based on size and breed, ensuring a safe and stress-free environment for every pup in your care.
5. Take Care of Legal & Licensing Requirements
There are several steps you must take to ensure that your dog daycare is operating legally and complies with all local, state, and federal regulations. Here are some key things to consider:
Do You Need a License to Start a Doggy Daycare?
Yes, you will typically need a license to start a doggy daycare business. Most cities or counties require a general business license to operate any business. You may also be required to get a license for your kennel or for animal care.
Choose A Business Structure
Decide how you want your business to be set up, as this can determine other legal considerations such as insurance coverage and taxation. There are several different business structures you can operate under:
Register Your Business
Once you’ve chosen a business structure and name, you’ll need to register your business. If you’re forming an LLC or corporation, you must register with your state’s Secretary of State office. If you’re using a different structure or operating under a different name than your legal business name, you may need to file a Doing Business As (DBA) registration instead.
Obtain Employer Identification Number (EIN)
Apply for an employer identification number (EIN) through the IRS for tax purposes and to open a business bank account.
Get Any Necessary Permits
As noted previously, ensure that your dog daycare is located in an area properly zoned for operating a pet care business. Otherwise, you may need to obtain a special use permit. Health and safety permits may also be required to certify that your facility is following proper sanitation and animal care standards.
Get Business Insurance
Consider what business insurance you’ll need to protect your business, including:
- General Liability Insurance
- Commercial Property Insurance
- Workers Compensation Insurance
- Animal Bailee Insurance
Consult with an insurance professional to best determine what insurance needs your business has.
Draft Necessary Business Contacts & Policies
Having clear, signed agreements in place is essential to protecting your dog daycare from potential legal issues. Client service agreements, employee contracts, waivers, and liability forms all help set expectations and outline important policies. By clearly stating risks, job roles, and business policies—and requiring clients and employees to sign in agreement—you reduce the risk of disputes and protect your business from future lawsuits.
6. Set Up Your Dog Daycare Facility
With the location selected and all legal items in place, you can begin to set up the interior layout of your business. Since dogs will be staying there for extended periods of time, there are some key considerations to make:
Design Layout for Safety & Efficiency
You want your business operations to run as smoothly as possible, so design an interior layout that promotes efficiency. Your dog daycare should include:
- Reception Area – A dedicated space for client check-in and checkout.
- Play Areas – Separate sections for dogs to socialize and exercise.
- Rest Areas – Comfortable spaces where dogs can relax and recharge.
- Feeding Area – A clean, designated spot for meal times.
- Outdoor Play Area – A secure, fenced space for fresh air and exercise.
- Quarantine/Isolation Area – A separate area to prevent the spread of illness.
A well-planned layout ensures smooth operations and a safe, enjoyable environment for the dogs in your care.
Purchase Necessary Equipment & Supplies
You’ll need the following equipment and supplies to run your daycare:
- Kennels and dog beds for rest areas
- Toys, agility equipment, and enrichment activities
- Grooming tools (if offering grooming services)
- Cleaning & sanitation tools
- Food & water bowls
- Safety equipment such as gates and leashes
Install Proper Safety & Security Measures
Make sure the dogs in your care stay safe, happy, and comfortable by installing the right safety features:
- Fencing & Secure Entryways: prevents dogs from escaping
- Ventilation & Climate Control: ensure proper air circulation and temperature regulation
- Fire Safety & Emergency Exits: Install fire extinguishers, smoke alarms, and easily accessible exits
- Surveillance & Monitoring Systems: Camera or live feeds for security and transparency with pet owners
Find The Equipment & Supplies You Need
7. Hire & Train Staff
Determine Staff Roles & Responsibilities
Before you can begin hiring and training, you need to determine your staffing needs. Your daycare may require:
- Dog Handlers/Pet Care Attendants: To supervise dogs, maintain cleanliness, ensure playtime safety, and monitor dog behavior.
- Receptionists: Handles bookings, greets clients, performs check-ins and check-outs, answers calls, processes payments, and provides information to pet owners.
- Groomers (if applicable): If you plan to offer these services, you’ll want professionally trained groomers.
- Facility Maintenance Staff: Responsible for cleaning, sanitation, and overall upkeep of your facility.
- Supervisors/Managers: Oversees staff, ensures policies are followed, handles emergencies, and manages daily operations.
The exact number of staff or roles you decide to fill will depend on your needs and capabilities. For a business that is just starting out, you likely will need only one receptionist and some dog handlers and can grow from there.
Start Conducting Interviews & Hiring Staff
Now that you know what roles you need to fill you can search for individuals with the right qualifications to fill those positions. Some key qualifications to look for in dog daycare staff include:
- Experience working with dogs
- Understanding of dog behavior, body language, and safety procedures
- Strong communication and customer service skills
- Ability to handle emergencies
- Physical fitness (as the job may require lifting, bending, and long hours on your feet)
Training Staff
Make sure to have a well-structured training program that covers dog handling and safety, health and emergency procedures, facility protocols and daily operations, and customer service. A strong training program, combined with a positive work environment, will help build strong relationships with clients and ensure smooth day-to-day operations.
8. Market Your Dog Daycare
The best way to grow your business to through the proper marketing strategies. Here are a few key tips to develop a strong marketing program for your dog daycare business:
- Define Your Target Market: Who will your services best appeal to? When first starting your marketing efforts, identify if you’re appealing to busy professionals, frequent travelers, or dog owners looking for specialized care and tailor your marketing to them.
- Create A Strong Brand Identity: Choose a memorable name and logo that’s easily identifiable, establish your unique selling proposition (what sets your business apart), and establish your brand tone, so that your dog daycare is instantly recognizable.
- Build An Online Presence: Create a professional website, utilize social media, and encourage online reviews to help potential customers find out more about your business more easily.
- Implement Local Marketing Strategies: Partner with other local pet businesses such as veterinarians, pet stores, groomers, and dog trainers to gain referrals. Strategically locate flyers and ads in local newspapers and pet-friendly places such as dog parks.
- Leverage A Customer Referral Program: Offer incentives such as a free daycare day or a discount to customers who refer others to your business. Provide exceptional customer service to generate word-of-mouth advertising.
- Host Events & Promotions: Organize events such as open houses, pet adoption events, or holiday-themed activities to attract potential customers. You can also offer special discounts or free trials for first-time customers.
- Invest in Paid Advertising: You can run targeted ads on Google Ads and Facebook Ads to reach customers searching for daycare services. Using local search engine optimization (SEO) strategies like keywords such as dog daycare near me can help improve their effectiveness.
9. Launch & Grow Your Business
The planning stage is complete—now it’s time to get your business up and running! Before opening day, make sure everything is in place:
- Licenses & Permits – Ensure all necessary paperwork is finalized.
- Facility Readiness – Your space should be clean, safe, and fully prepared to welcome guests.
- Supplies Stocked – Have everything you need for your first visitors, from toys to cleaning products.
- Test Run – Conduct a trial run with friends, family, or select customers to fine-tune operations before the official launch.
For your grand opening, consider offering promotions, giveaways, or free trial services to attract customers and spread the word.
Once your business is up and running, focus on growth by expanding services, monitoring finances, adjusting pricing, building relationships, offering memberships and packages, and gathering customer feedback to continually improve.
Dog Daycare Pricing: How Much Should You Charge?
The exact price you should charge for your dog daycare services will largely depend on your goals, your competitor’s price, the area you’re operating in, and all you offer. There are several pricing strategies to consider when first starting a business, and these may fluctuate with time, depending on where your business is at. They include:
- Setting your prices at competitive rates based on the current market standards
- Initially setting your prices low to try to break into the industry
- Set your prices above how much it costs to supply them to generate revenue
- Setting prices based on their perceived value rather than actual cost
- Start by charging high prices and then gradually lower them over time
- Keep your prices as low as possible to attract customers
- Changing pricing depending on demand, season, or customer behavior
Common Dog Daycare Prices
Here are some of the industry standard pricing methods and, on average, how much they charge, to give you a better feeling for what you should charge. Please note that these can vary depending on all the services you include, the dog breed, and more.
- Standard Daily Rates
- $25-$50/dog for a full-day (6-10 hours)
- $15-$30/dog for a half-day (4-6 hours)
- Hourly Rates
- $8-$15/hour
- Multi-Day Packages (Discounted Bulk Rates)
- 5-day Pass: $115-$225
- 10-day Pass: $400
- Monthly Unlimited: $400-$900
- Membership & Subscription Plans
- Weekly Membership: $100-$250 (unlimited or set visits)
- Monthly Membership: $400-$1,000 (unlimited access + perks)
Add-On Services
You could also charge extra for additional services:
- Grooming/Bathing: $20-$80
- Training Sessions: $30-$100
- Overnight Boarding: $40-$100
- Specialty Care (puppy care/senior dog attention): $5-$15/stay
Is a Dog Daycare Profitable?
Yes! A dog daycare can be a highly profitable business. Many pet owners need a trusted place to care for their dogs while they’re at work or on vacation. With the right location, pricing, services, and efficient operations, you can build a successful and profitable business.
That said, it’s important to remember that profitability doesn’t happen overnight. Like most businesses, it may take time to break even, especially with startup costs like securing a facility, purchasing supplies, and hiring and training staff. But with careful planning and dedication, your dog daycare can grow into a thriving business!
Can I Run A Dog Daycare Out of My Home?
Yes, you can run a dog daycare from your home, but there are a few important factors to consider. First, check local laws and zoning regulations to ensure your property is approved for housing multiple animals or operating a commercial business. Second, make sure your home has enough space for both indoor and outdoor play areas, provides proper ventilation, and meets other safety requirements to create a comfortable and secure environment for the dogs in your care.
Get Custom Dog Kennels To Set Your Dog Daycare Business Apart
One of the most important aspects of your dog daycare business is ensuring dogs have a safe, comfortable place to stay. A well-designed kennel with proper ventilation, ample space, climate control, and an attached outdoor run can set your business apart. A spacious, secure environment keeps the dogs happy and healthy and gives their owners peace of mind knowing their pets are in good hands.
At The Dog Kennel Collection, we understand the importance of high-quality kennels for dog daycare businesses. That’s why we offer customizable commercial kennels designed to meet the unique needs of daycare owners. Plus, with our partner Backyard Pet Supplies, we can offer a range of dog care products to supply your business with all it needs. Explore our range of features and options to create the perfect space for the dogs in your care!
