If you’ve been thinking about opening a dog daycare for a while, the time is right now. The pet-care industry is on an upward trajectory, with 2026 sales projected to reach $165 billion. The pet services industry accounts for $14.5 billion of this total, signaling consumer interest in daycare, boarding, and grooming services. Additionally, recent consumer trends reveal a preference for niche and luxury pet care that small businesses like yours can provide.

You’re probably itching to get moving and start inviting some canine customers into your business, but there are a few things you need to know first. At Gingr, we know the ins and outs of starting a dog daycare. We’ve helped hundreds of new daycare owners streamline their management practices with our powerful dog daycare software.

To help you achieve that same success, we’ve compiled these top considerations and insider tips:

  • Essential Steps to Starting a Doggy Daycare
  • Financial Considerations for Starting a Dog Daycare
  • Doggy Daycare Rules and Regulations to Know
  • How to Start a Dog Daycare Business FAQ

Let’s get started with the essential tips you need to launch your dog daycare business.

Gingr helps pet businesses simplify everything from automation to daily operations and strategic marketing. Learn about our software.

Essential Steps to Starting a Doggy Daycare

Now that we’ve laid down a few foundational considerations, it’s time to get into the nitty-gritty of your planning process. Here are the essential steps to take to get your daycare business up and running:

 

1. Create a business plan.

Your dog daycare business plan will serve as a blueprint for presenting to prospective investors or as a guiding document as you make strategic decisions. As you create your business plan, you’ll examine the state of the dog daycare market in your local area, identify key competitors, and figure out how your business will serve an existing need to reach an untapped audience. 

Define your niche, or your business’s unique offerings that customers won’t find anywhere else. For example, maybe you have the biggest puppy playground in town and offer a splash pad. Or, perhaps you offer training or grooming services to daycare customers. Promoting your niche services will give your business a competitive edge, help you stand out, and attract more customers.

In your business plan, fully describe your tactics for carving your place in the market and getting your services in front of prospective customers. A well-structured strategy makes your case stronger when you present your business plan to prospective investors.

2. Choose a facility.

In your search for the perfect facility, be sure to consider the following:

  • Your budget: Stay in your price range when hunting for a facility. You shouldn’t allocate all funds into leasing or facility costs because you’ll have little to spend on equipment or employee salaries.
  • Your distance from your target customer base: You don’t want to be far from your target market, or no one will want to use your services. Choose a facility that is conveniently located where your customers reside.
  • The amount of space you need: To run a proper dog daycare facility, you’ll need a lot of outdoor space to fit playground equipment for dogs to enjoy. Additionally, you’ll need plenty of indoor space to store kennels and cages for overnight guests, as well as an indoor play area in case of inclement or hot weather. Ensure you have enough space for all dogs to lounge and play comfortably, and for your employees to carry out their duties.

Find a space that accommodates these considerations and gives you the room you need to grow. The more space you have, the more doggy daycare customers you can accommodate at once.

3. Acquire equipment and pet business software.

Although you may choose to go above and beyond and offer special services, there are a few basic equipment pieces every dog daycare needs to be successful. Make sure you purchase the following items for your new business:

  • Playground equipment
  • Playpens
  • Toys and balls
  • Kennels and crates
  • Food and water bowls
  • Leashes
  • Poop scoopers and bags
  • Cleaning supplies
  • First aid kits for dogs and employees
  • Laundry supplies and a washer/dryer

Besides physical equipment, you’ll want to invest in quality dog daycare business software to help manage scheduling and client relationships. Doggy daycare business software has many benefits, including: 

The four benefits of using dog daycare software (detailed below).

  • Saving time. You won’t have to spend endless hours rifling through client information or payment slips to find information. All important data is stored in a single centralized location.
  • Managing schedules. You can book customer appointments and manage employee schedules from your software system. 
  • Boosting retention. Through your dog daycare software, you can send messages to customers and provide updates on their pets throughout their stay at your facility. 
  • Facilitating and enhancing marketing efforts. You can draft and send automated messages using your daycare software to keep your customers and prospective clients updated on business changes or upcoming promotions. 

With top-quality equipment and an easy-to-use, convenient software system, you’ll be one step closer to opening your doors to furry friends.

4. Hire dog daycare staff.

When hiring new employees for your dog daycare, look for people who are dog lovers through and through. Confirm that they have any required or standard qualifications to ensure they are knowledgeable and dependable employees who add value.

For example, search for prospective employees with a baseline of training in canine first aid and some prior experience caring for dogs. Employees with experience working with dogs can help create a safe environment for dogs from all backgrounds to mingle and play. Consider bringing on staff members with a wider range of experiences, including dog training or grooming, to give your business a unique service offering. 

Last but not least, hire flexible employees who adapt to change. As your business grows, you want people on your team who can adapt to new processes quickly and effectively carry out your vision for your daycare.

5. Evaluate behavior to keep pets and staff safe.

Create a process for conducting temperament tests for new canine clients. Temperament tests aren’t required by law, but they’re one of the best ways to ensure the dogs in your care, as well as you and your staff, can stay safe and avoid injuries or scuffles. 

Steps for running dog temperament tests include interviewing pet parents, conducting evaluations and observations, and taking notes to reference while assigning dogs to playgroups. 

Also, train your staff to recognize and respond to changes in dog behavior. By observing body language and recognizing signs of illness, employees can appropriately respond to various situations to keep themselves and the dogs safe. This will help you keep your dog daycare activities fun and safe. Plus, customers will appreciate the care and attention you put into making sure their pets stay safe, healthy, and happy. 

6. Market your dog daycare services to pet owners.

A comprehensive marketing strategy is key to connecting with prospective customers and earning their trust.

Take a multichannel approach to your marketing to ensure your target audience becomes aware of your offerings without overwhelming them on a single platform. Spread the word through: 

  • Social media: Create a business page for your doggy daycare on Facebook and Instagram and connect with other dog daycare businesses and dog owners in your area to start growing your following. Consider purchasing social media ads to promote your business directly.
  • Email: Start developing your email list by promoting your newsletter sign-up on your social media pages. Email is an effective way to reach customers directly and let them respond and ask questions. 
  • Direct mail and/or flyers: Similarly, direct mailers or flyers reach your target audience directly because you can send materials to certain addresses. Be sure to include your location, hours of operation, phone number, website, and social media handles on your mailers and flyers so people know how to reach you. 
  • Local radio and TV ads: If there’s room in your budget, consider taking out an ad spot on a local radio or TV station. Use the opportunity to introduce yourself and your staff to give your business a friendly face. 

Ensure all your marketing materials are branded with your business’s logo and colors to leave your audience with a professional impression. Also, lean into the playful aspect of your business. Just about everyone loves dogs and puppies, so show images or videos of puppy pals playing and having the time of their lives at your daycare to entice potential customers.

7. Monitor your daycare’s performance and improve.

To improve over time, you’ll need to monitor your dog daycare’s performance metrics to see what’s working and what needs adjusting. In your first year of business, pay close attention to metrics like:

Seven important dog daycare metrics to watch as a new business (detailed in text).

  • Average daily attendance (ADA): The average number of dogs your dog daycare business hosts per day over a certain period of time (week, month, quarter). For a new business, this tracks your growth trajectory and can help you see whether you’re close to reaching your facility’s capacity.
  • Customer acquisition cost (CAC): Total spend on marketing and sales recruitment efforts divided by the number of new customers. This helps you determine whether your recruitment efforts are effective and sustainable.
  • Revenue per pet parent: Total revenue divided by your total number of clients. You’ll see how much each customer that walks through the door spends on average, helping you refine pricing, upsell strategy, and financial planning.
  • Staff-to-dog ratio: The number of employees on the clock relative to the number of dogs in the playrooms. Maintaining the right ratio is critical for safety, payroll management, and compliance with local regulations.
  • Churn rate: The percentage of customers who stop using your services over a given timeframe. High churn in the first year is a red flag that could signal poor first impressions or a lack of follow-up marketing.
  • Occupancy rate: The percentage of available spots or kennels that are actually filled. This can help you identify peaks and dips in demand, allowing you to run targeted promotions to fill gaps.
  • New vs. returning customer ratio: The number of first-time visitors versus those who have visited at least twice. While you need a steady stream of new leads, long-term profitability is built on having a loyal base of regular customers who provide predictable income.

Review these metrics regularly to stay on top of trends in your customers’ behavior. Keep in mind that some metrics, such as staff-to-dog ratios, should be monitored daily, while others, like churn rate, can be analyzed quarterly.

Financial Considerations for Starting a Dog Daycare

Costs to Consider When Starting a Dog Daycare Business

Understanding the distinction between fixed and variable costs is key to building a sustainable business plan and budget for your dog daycare. While fixed costs remain constant regardless of service volume, variable costs fluctuate depending on occupancy and volume. By separating these expenses, you can accurately calculate your break-even point and make informed financial decisions as you grow.

The difference between fixed and variable costs, along with examples for each type (detailed below).

Fixed Costs

Fixed costs are the expenses you must pay every month, even if you have no customers. These are predictable, stable, and tend to be easier to budget for.

Common fixed costs for dog daycares include:

  • Rent or mortgage payments
  • Business insurance
  • Salaried payroll
  • Tech subscriptions
  • Loan repayments
  • Permits and licensing fees
  • Website hosting
  • Certain utilities, such as trash removal or flat-rate plans

Variable Costs

Variable costs are the expenses that go up and down depending on usage and/or business activity. They are directly tied to your daily operations and the number of dogs you’re caring for.

Common variable costs for dog daycares include:

  • Hourly wages
  • Cleaning supplies
  • Treats and food
  • Leashes, toys, and beds
  • Most utilities (water, electricity)
  • Merchant processing fees
  • Marketing and ad spend
  • Repair and maintenance of your facility and supplies
  • Grooming supplies (with potential to recoup these costs if you offer grooming as an add-on or upsell service)

How to Determine Profitability

The basic equation for determining profit is: Net Profit = Total Revenue - Total Expenses

  • Total revenue = All of the money coming into your daycare business
  • Total expenses = The sum of all of your costs

Achieving profitability at your dog daycare will depend on a few factors, such as:

  • Your fixed and variable business costs
  • Your ability to reach your target market
  • The services you decide to offer (daytime and overnight care, training, etc.) 
  • How you price your services
  • How you manage your money 
  • The demand for your services in your area

To make a profit, your revenue must outweigh your costs. Check out this dog daycare business plan guide for detailed profit equations you can use to predict your profit margins for your new business.

Selecting a Business Model

Dog daycares rely on repeated visits from regular customers. After all, it’s much more cost-effective to secure the loyalty of a repeat customer than to constantly solicit one-time or short-term clients. 

You have a few options for structuring your dog daycare business model to boost loyalty: 

  • Pre-paid packages: Give customers the option to purchase convenient packages. For example, many customers need to drop their dogs off at daycare while they’re at work. You can offer different tiers of prepaid packages (three, four, or five days of daycare services per week) so they won’t have to pay each time they pick up their pooch.
  • Memberships: Invite customers to join your exclusive loyalty rewards program and offer a discount when they sign up and/or a continuous discounted rate. 
  • Unique services: Offer your customers a special perk or benefit that they wouldn’t normally get at other daycares, such as training or grooming services. 

As you start planning your new daycare, consider which business model you’re interested in and incorporate it into your business plan. For example, if you want to offer special services, plan to hire a groomer or professional trainer on your staff.

Developing Pricing for Your Dog Daycare Services

It’s critical to strike the right balance with your prices to attract the widest possible range of customers. Keep these considerations in mind:

  • Avoid going too low, as your customers will worry that their precious pups won’t be receiving the highest quality of care. 
  • Don’t go too high, or you’ll have to justify the price by offering top-quality services that customers can’t get elsewhere. This can come at a steep cost for your business. 
  • Ensure prices can cover your costs and turn a profit, given your average service volume.
  • Keep things simple. If your pricing model is too complicated, it could turn off prospective clients and drive them to seek daycare services elsewhere.
  • Conduct careful market research to investigate the prices of other dog daycare facilities in your area to make sure you’re in the right ballpark for your business’s prices. 
  • Justify any price increases with enhanced services, and be sure to promote your membership or loyalty program that offers discounted rates to recurring customers. 

Your pricing sends a message to prospective clients right away about the level of service they’ll get with your business, meaning it’s crucial to make a good first impression.

Doggy Daycare Rules and Regulations to Know

Choosing a Business Structure

You’ll have to determine a few legal characteristics of your business before you can get started. First, consider how you’ll structure your business entity. Your choices here include: 

The four main dog daycare business structures to choose from, with pros and cons for each (detailed in text).

  • Sole proprietorship: If you’re the only one running your business, you can maintain it as a sole proprietorship. All business activities will be under your name, making this the easiest business structure to form. However, a major drawback is that you can be held personally liable for your business’s debts.
  • Partnership: If you have one or more business partners, consider creating a partnership. In this structure, you and your partners share liability. 
  • Corporation: Your business is a separate legal entity. In this case, your business can be held liable for debts or lawsuits rather than you. However, these are more complicated structures generally used for large businesses.
  • Limited liability company (LLC): An LLC can consist of you, your partner, or a group of people. In most cases, your personal assets are protected from business debts or lawsuits. 

To determine which structure you’d like to have for your doggy daycare, consider your long-term business goals. Once you’ve chosen a structure, register your business with your state government and consult a lawyer to help with the legal details.

Additionally, check your state and local laws and regulations to determine the licenses or permits you need to start your business. Each state has different requirements and specific health and safety regulations for animal-related businesses.

Purchasing Dog Daycare Insurance

Purchase business insurance before opening your doors to puppy pals and their caretakers. Dog daycare business insurance protects your business from liability if an accident or injury occurs.

There are three types of pet business insurance you should look into as you plan for your grand opening:

  • Commercial liability insurance: This insurance covers your business if an accident occurs in the daily operations of your dog daycare. For example, a customer might slip and be injured at your daycare, or a burst pipe in your facility might damage nearby businesses. 
  • Property insurance: Property insurance covers your physical daycare facilities and equipment if something like a natural disaster, robbery, or fire occurs. 
  • Professional liability insurance: This insurance covers any accidents or injuries arising from your dog daycare's activities. For example, two dogs could get into a fight, or a dog could break free and run away. Professional liability insurance protects you and your business from fault in these instances. 

Look out for any special requirements your insurance carriers might have. For example, they may require that you have staff or customers sign waivers so they can’t hold your business liable in cases of ordinary negligence. Meeting these requirements is essential—otherwise, the insurance company could deny claims or even cancel your policy.

Setting Dog Daycare Rules

You’ll want to set some ground rules before you open your business so customers know what to expect and what’s required before their dogs can visit. These rules are critical for mitigating risk and protecting yourself and your business from liability. A few common dog daycare rules are:

  • Age restrictions: Extremely young puppies can be at risk in a dog daycare setting, so you’ll want to specify age restrictions for your daycare, such as no pups younger than five months. 
  • Behavior: You don’t want to put other dogs at risk by having misbehaved or aggressive dogs at your daycare. Institute a rule that says canine guests should not have a history of aggression toward other dogs or people. 
  • Required temperament tests: Conducting these tests allows you to prevent conflicts and behavioral issues before the dogs ever walk through your door. Temperament tests evaluate each dog’s physical and mental characteristics, as well as how they react to external stimuli (other dogs, humans, loud noises).
  • Vaccination requirements: All dogs should be up-to-date on their vaccinations before being allowed to play or stay at your dog daycare. Use software that allows pet parents to upload vaccinations for their dogs and send them expiration notices.
  • Internal staff-to-dog ratio guidelines: Set a ratio you and your staff are comfortable with and ensure you always have enough team members working to meet that ratio. Typically, businesses cap these ratios at 10 to 15 dogs per staff member, but this might still feel too overwhelming if you have a lot of puppies or high-energy breeds in your care.
  • Late or cancellation fees: Outline specific policies for late or cancellation fees (e.g., “If you cancel within less than 24 hours of the appointment, you will be charged the deposit of $25.”) and require customers to agree to the terms before booking. 

As you grow your client base, organizing and maintaining all your records for each visitor will start to get complicated. Doggy daycare business software can be a major asset for collecting client information to reference and update as needed. Your software system will store all the important details in one place, keeping your records organized and saving you time and hassle.

Go beyond simple ideas and enhance your doggy daycare from the inside out. Dive into easy-to-understand concepts that boost efficiency, satisfaction, and revenue. Read our free guide!

How to Start a Dog Daycare Business FAQ

What does it take to start a dog daycare?

Starting a dog daycare requires a strategic blend of physical infrastructure, professional branding, and specialized technology. At the baseline, you need: 

  • A facility that meets local requirements for animal care
  • A significant initial capital investment for build-out
  • A high-performance website to drive bookings
  • Pet business management software like Gingr that can handle the unique needs of pet-care businesses 
  • A talented, animal-savvy team 

Beyond these basics, you’ll also need to prepare for and manage potential risks. Secure business insurance policies, establish clear safety protocols, and create a scalable business plan. 

How much would it cost to start a doggy daycare?

Starting a dog daycare can cost anywhere from a few thousand dollars for a home-based business to $150,000+. Startup costs will vary widely depending on your location, the size of your facility, and the level of luxury you’re aiming for. When estimating cost, pay attention to these core expenses:

  • Facilities: You need space for your canine guests to play and sleep when they’re in your care. Therefore, you must purchase or rent a physical facility for your daycare business. 
  • Equipment: You’ll need to purchase playground equipment, such as play structures, toys, and water features. Additionally, you’ll need care-related equipment, such as kennels and cages, food and water bowls, dog beds, leashes, treats, and cleaning supplies.
  • Staff: You’ll likely want to bring on a few staff members to help out, so one of your costs will be employee wages.
  • Software and technology: Technology is your bestie as a doggy daycare. Invest in quality dog daycare software and tools that will allow you to do online reservations, client communication, payments, and business reporting.

Is doggy daycare a profitable business?

Yes, dog daycare can be profitable, but remember that it is a high-volume, margin-sensitive business. Because your fixed costs remain the same regardless of attendance, your profitability depends on maintaining a high occupancy rate and managing labor costs. This is why effective marketing, upsells, and loyalty programs are so important.

Do I need a license to run a dog daycare?

Yes, but the specific type of license varies widely by location. Most cities and counties require a general business license, a specialized animal boarding or kennel permit, and a health department inspection. Because regulations vary significantly, check the regulations in your area early in the planning process.

How much space does a dog daycare need?

Allow for 75 to 100 square feet per dog in play areas. This ensures that dogs have enough room to move freely without feeling crowded, reducing the risk of scuffles or stress-related incidents. Additionally, don't forget to account for non-play space. You’ll also need room for a lobby or reception area, space for feeding and napping, storage space, and potentially separate areas for different playgroups. 

What equipment is essential for starting a dog daycare business?

To get your facility up and running, categorize your purchases into must-haves for day-one operations and nice-to-haves as you scale:

Must-haves often include:

  • Fencing
  • Non-porous flooring
  • Water stations
  • Heavy-duty kennels
  • Dedicated pet management software, like Gingr

Nice-to-haves might include:

  • Webcams
  • Enrichment gear and supplies for enriching activities
  • Acoustic paneling to dampen noise

Additional Resources

To ensure you build a positive work culture and, in turn, boost your business’s long-term sustainability, prioritize proper management practices, treat your staff well, develop new offerings, and consistently improve using data-driven insights. Having a comprehensive pet business management system like Gingr on your side makes juggling all of these tasks simple, giving you more time to engage with your customers. Reach out today to book a demo!

For more pet business tips and tricks, check out these additional resources: