Over the last several years, the pet grooming and boarding industry in the United States has exploded. In fact, from 2014 to 2019, the sector experienced 6.2 percent annualized growth, reaching a total industry revenue of $9 billion. If you’re passionate about dogs and looking for ways to turn that passion into a career, buying a dog kennel may be a business opportunity worth exploring.
Knowledge is power when it comes to buying a business, especially in the pet-care industry. Ask the following questions to determine whether buying a dog kennel is right for you.
Owning a dog boarding facility is about so much more than just a love for dogs; it also requires extensive knowledge of customer service, sales, financials, and management. The average kennel owner-operator should be prepared to be on his or her feet quite a bit, and actively manage kennel managers, attendants, receptionists, and even groomers and trainers depending on the business model.
Buying an existing dog kennel business has many advantages over starting one on your own. Not only is an established kennel or dog daycare going to have existing clientele, but it’s also going to have trained staff, an established brand, existing cash flow, and a fully-equipped facility. With so much of the business already set up and flourishing, you’re minimizing risk for yourself and investing in a proven business model.
Choosing where to purchase a dog kennel can be one of the more challenging to-do’s when searching for dog kennel businesses for sale. In general, it’s best to choose a location based on the disposable income of the surrounding population, as well as population density. Pet owners with higher disposable incomes tend to pay a premium on pet care, grooming services, training, and boarding. If you find a profitable dog kennel for sale in a high-income area, it may be worth exploring the opportunity.
Aside from location, look for a boarding kennel that sets itself apart from the competition. Things that may differentiate a pet boarding kennel from its competitors include:
These are just a few ways that you can tell that a kennel seller has established a business model that is built to last.
Asking prices for dog boarding businesses vary tremendously based on location, size of the facility, assets, revenue, and cash flow. When inquiring about a dog kennel business for sale, be sure to ask the business owner if he or she received a third-party business valuation. If a professional valuator or business broker appraised the kennel, it is likely priced reasonably. If not, the asking price could be inflated by emotional attachment to the business and is likely negotiable.
To learn more about buying a dog kennel or doggy daycare business, contact a Sunbelt Business Brokers office near you. Our brokers have years of experience helping entrepreneurs like you find their ideal business. Not only can a broker help you identify the right business for your lifestyle and budget, but he or she can also guide you through financing options, negotiations, and closing a deal.