While this guide covers the essentials, there is still much to delve into. You can navigate to specific sections if you already have a good understanding of what you're searching for, or continue reading from start to finish to gain a better understanding.

Get ready to give your furry friends a safe and comfortable home away from home!

Before starting your dog daycare business, it's essential to have a clear understanding of several tried and tested concepts as it applies to building a business case and plan. To ensure a solid foundation for your new pet care business, you should begin by creating a detailed financial business plan.  

Profitability calculations will help you establish a path that best suits your situation and goals. To be able to make such calculations, you need to think about a few key questions:

1. What is my mission or goals? 

2. What is my branding and marketing strategy?

3. What kind of competition am I up against?

4. What location should I build my dog daycare business?

5. What licenses, rules and regulations should I be aware of?

6. How much money can I earn running a doggy daycare?

To investigate steps 1-5 a little further, check out our article about starting doggy daycare business before reading on.

This article focuses on (the 6th step) the creation of your dog daycare business plan.

So how much can you earn running a doggy daycare? And is it worth it? Let's find out.

Luckily it's an easy process to find out.

And we've made it even easier with a detailed calculator below. But first let's learn a little bit more about what we need to find out and plug into this tool.

To ensure profitability in your dog daycare business, it is crucial that the revenue generated from customer payments surpasses the costs associated with providing those services.

Expected Costs:

• Rent
• Marketing
• Repair
• Maintenance
• Salaries & Commissions
• Software
• Dog food & Treats
• Other

For example: to calculate total monthly staff salaries: (# of staff ) x ($ staff hourly wage) x (# of hours per week) x (4.345 Weeks Per Month) x (# of Doggy Daycare Locations)

Note: There are on average 4.345 weeks per month in a given year.

Expected Revenues:

• Doggy Daycare
• Boarding
• Grooming
• Pet Sitting
• Products

For example: to calculate the Doggy Daycare Revenues: (Full-Day Daycare $ Rate) x (# Full-Day Services Completed Per Week) x  (4.345 Weeks Per Month) x (# of Doggy Daycare Locations).

Managing the numerous variables involved in operating a profitable dog daycare can be a challenging task. However, by using the appropriate equations and considerations, you can better understand and manage these factors.

These costs can be categorized into two broad categories: Selling, General, and Administrative (SG&A) expenses and Cost of Goods Sold (COGS).

SG&A expenses are indirect costs that are not directly tied to the production of goods and services, such as salaries (facility workers like reception or cleaning staff, marketing and advertising expenses, legal and professional fees, rent and utilities, and other administrative expenses.

COGS, on the other hand, includes the direct costs associated with producing and selling goods, such as materials, labor, and overhead expenses directly tied to the production of services. More specifically, a professional groomer working out of your doggy daycare facility receives 70% commission for any revenue you make from their services. This would go into the COGS.

Both SG&A and COGS are important metrics for measuring a company's financial performance and profitability, as they provide insight into the efficiency and success of a company's operations.

Over a period of time, usually monthly:
Gross Profit = Total Revenue - Cost of Goods Sold (COGS)

Gross profit is a key financial metric that measures a dog daycare's profitability after accounting for the direct costs of producing and

selling its goods or services. It is calculated as the difference between total revenue and the Cost of Goods Sold (COGS). Gross profit is expressed as a dollar amount and as a percentage of total revenue, and provides important information about the success of a doggy daycares core business operations.

Gross profit is calculated by subtracting COGS from total revenue. For example, if a business generates $100,000 in total revenue that month and its groomers and pet sitters take a commission of 70% which is $70,000, its gross profit would be $30,000 ($100,000 - $70,000).

Gross profit is an important metric for evaluating a company's financial performance and profitability because it provides insight into the efficiency of a company's operations. 

Over a period of time, usually monthly:

Net Operating Profit = Gross Profit - Indirect Costs (SG&A)

Net Operating Profit is a measure of a company's profitability that takes into account all operating expenses associated with running the business. It represents the amount of money a company earns after deducting all costs involved in producing and selling its products or services.

The net profit equation is calculated as follows:

When the net profit is positive, this means that the business is making more money than it is spending, but even then you need to consider whether the amount is worth your while.

If the net profit is negative, the business is losing money, and it is important to identify the reasons for this loss and take corrective action (maybe you overestimated a cost or underpriced a service or two).

Don't worry if all the above equations and factors seem complicated - Easy Busy Pets has taken care of everything for you. Our Doggy Daycare Profitability Calculator is here to help you analyze your approximate profits with ease.

Start your profit analysis now!

These concepts are further discussed in a sister article about starting a doggy daycare business. 

Here at Easy Busy Pets, we are dedicated to delivering the ultimate dog daycare software experience for business owners like you. If you're looking for a top-notch solution to streamline your doggy daycare and grooming operations, don't hesitate to reach out to us. Our team is ready and eager to provide you with more information and help you take your business to the next level. Contact us today!