How Much is my Kennel or Dog Day Facility going to cost ?

In order to calculate this figure accurately, you'll have to identify every expense component of your project for which you will incur costs from the moment of project conception to the day you open the doors and beyond to cover operating expense while you ramp up business operations. The First thing you'll have to consider is whether you're going to Rent or you're going to Build and Own a New Facility, but in either case you'll have to consider quite a number of other factors to develop an accurate start up expense projection. Our Pet Care Business Development Library guides you through this process. Completeness and Accuracy is Critical, because if you fail to include one essential component, or fail to accurately project costs, you could face significant unanticipated costs of tens of thousands of dollars. But for the sake of example, let's consider two examples of determining start up expenses, the first for Renting, and the second for Building and Owning a new facility. Keep in mind these are only examples and that particular expenses for each project will be unique.

1. Rent a 6000 square foot building for which you'll have to extensively renovate the interior to accommodate your 50 Pet Guest Dog Day Care Facility. Construction renovation Costs vary from region to region, and of course the challenges you'll face will vary from property to property. Nevertheless, if you calculate acquisition costs, security deposits, interior renovation costs, employee training, supplies, playground equipment, and use a factor of $75 per square foot, you should be able to project realistically what your start up expenses will be. So in this example, 6,000 x $75 square foot = $450,000. Think this is way too much ? Think again. There will Legal Fees, Real Estate commissions, Architectural Fees, Hard Construction Costs, Kennel Containment Systems, Bathing and Grooming Equipment Costs, Office Equipment, Computers, Software, Pet Supplies, Food, ID Tags, Specialty Equipment Costs, Employee Training Costs, Loan Fees, Operating Capital, and a lot more. The goal here is to be inclusive. Don't fail to anticipate each and every expense you might incur. If you don't include every possible cost in your startup expense summary, the Banker or Investor will inevitably ask why not, and you won't have the credibility to invest in. If you're fortunate enough to find a property which is more suited to your business operation and doesn't require the renovations or infusion of capital you project, then that's great, you'll have a greater reserve, but you will have at least considered all expense possibilities.

2. Build a 6,000 square foot facility for which you must take out a loan to purchase land, design a building, construct it, furnish it, train your employees, and fund operations for three to six months so your business can ramp up to occupancy expectations to support the business profitably. For this scenario use a factor of $225 per square foot. Therefore, your estimated start up costs for building a 6,000 square foot facility will be in the neighborhood of $1,350,000. This value can and will vary depending on land costs, construction methods, and interest rates.

These figures are eye openers to be sure, realistic in the sense that in our experience most new businesses fail to consider the myriad number of factors which contribute to start up expense. Whether you're going to rent or build and own, don't underestimate your start up requirements.