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You might consider targeting a niche market by specializing in a certain aspect of your industry, such as cat sitting.
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Written by: Carolyn Young
Carolyn Young has over 25 years of experience in business in various roles, including bank management, marketing management, and business education.
Published on January 27, 2022
Updated on October 7, 2022
Investment range
$1,750 - $4,400
Revenue potential
$39,000 - $78,000 p.a.
Time to build
0 – 3 months
Profit potential
$35,000 - $47,000 p.a.
Industry trend
Growing
Commitment
Flexible
People are crazy about their pets, and many are willing to spend whatever it takes to give them the best care. Americans’ spending on pet services, which totals more than $6 billion, literally doubled in the decade ending in 2017 and continues to grow.
Pet sitting alone is a $2.5 billion global market. If you love animals, you could start your own pet sitting business and grab a share of that huge market while spending lots of quality time with cute and cuddly critters and making good money.
But even a business as simple as pet sitting, which is mainly about going to people’s homes to care for their animals, takes some preparation and study before you jump in. In this step-by-step guide, you’ll find everything you need to know to start a successful pet sitting company.
A pet sitting business has pros and cons you should consider before deciding if it’s right for you.
Americans spent nearly $110 billion on their pets in 2021, nearly double the total a decade ago.((https://www.statista.com/statistics/253976/pet-food-industry-expenditure-in-the-us/)) One of the fastest-growing segments of this market is pet sitting.
Trends in pet sitting include:
Some challenges to being a professional pet sitter include:
Startup costs for a pet sitting business range from about $1,700 to $4,000. The costs include a website, scheduling software, and insurance. You can also take courses and become a certified pet sitter through the NAPPS if you choose for an additional $250 to $400. Courses are self-study and must be completed within 6 months of purchase.
This budget assumes you will mostly be visiting pets in their own homes, and caring for them there.
Start-up Costs | Ballpark Range | Average |
---|---|---|
Setting up a business name and corporation | $150 - $200 | $175 |
Business licenses and permits | $100 - $300 | $200 |
Insurance | $100-$300 | $200 |
Business cards and brochures | $200 - $300 | $250 |
Website setup | $1,000 - $3,000 | $2,000 |
Scheduling and management software | $200 - $300 | $250 |
Total | $1,750 - $4,400 | $3,075 |
The average price for pet sitting is about $30 per day and $75 for overnight pet sitting, which generally includes one daytime visit and an 8-12 hour overnight stay at the customer’s home. Your only ongoing costs should be for fuel and marketing, so your profit margin will be around 90%.
In your first year or two, you could sit for 5 pets a day (day time pet sitting for $30), 5 days a week, bringing in $39,000 in annual revenue. This would mean a $35,000 in profit, assuming that 90% margin. As you build a reputation, you might want to hire an assistant so you could double bookings to 10 pets a day. But this would reduce your profit margin to 60%. With annual revenue of $78,000, you’d make around $47,000 in profit.
To make a bit more money, you might want to expand your pet business into a doggie daycare center, or dog grooming.
There are a few barriers to entry for a pet sitting business. Your biggest challenges will be:
Now that you know what’s involved in starting a pet sitting business, it’s a good idea to hone your concept in preparation to enter a competitive market.
Research pet sitting businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing an overnight pet sitting business.
You might consider targeting a niche market by specializing in a certain aspect of your industry, such as cat sitting.
This could jumpstart your word-of-mouth marketing and attract clients right away.
You’ll need to determine what you’ll offer as part of your pet sitting services. You could offer things like basic grooming services, or pet food delivery as add-on services.
Prices for pet sitting are about $30 per day or $75 a day for overnight pet sitting. Your ongoing costs will be low, so you should aim for a profit margin of about 90%.
Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price point. Remember, the price you use at launch should be subject to change if warranted by the market.
Your target market will be broad: anybody who owns a pet. However, the people willing to pay good money for pet sitting services is probably a more established group. Good places to find those people might be Facebook or LinkedIn. Don’t overlook Instagram, however, where you’ll find younger pet owners.
You’ll likely start your pet sitting business at home to keep costs low, but as you expand you might want to rent a facility. Find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.
When choosing a commercial space, you may want to follow these rules of thumb:
Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.
Here are some ideas for brainstorming your business name:
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist at Fiverr to create a top-notch business plan for you.
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to pet sitting businesses.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your pet sitting business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using ZenBusiness’s online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.
The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist, and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.
Securing financing is your next step and there are plenty of ways to raise capital:
Bank and SBA loans are probably the best options, other than friends and family, for funding a pet sitting business. You might also try crowdfunding if you have an innovative concept.
Starting a pet sitting business requires obtaining a number of licenses and permits from local, state, and federal governments.
Federal regulations, licenses, and permits associated with starting your business include doing business as, health license and permit from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your pet sitting business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur, particularly when taking care of other people’s pets. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You can use industry-specific software, such as TimeToPet, Pet Sitter Plus, or Scout, to manage invoicing, payments, communication, and branding.
Some of your business will come from online visitors, but still, you should invest in digital marketing! Getting the word out is especially important for new businesses, as it’ll boost customer and brand awareness.
Once your website is up and running, link it to your social media accounts and vice versa. Social media is a great tool for promoting your business because you can create engaging posts that advertise your products:
Take advantage of your website, social media presence and real-life activities to increase awareness of your offerings and build your brand. Some suggestions include:
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google.
You can create your own website using services like WordPress, Wix, or Squarespace. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.
Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your pet sitting meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your pet sitting business could be:
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a pet sitting business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been pet sitting for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in pet sitting. You’ll probably generate new customers or find companies with which you could establish a partnership.
It’s unlikely that you will need employees for a pet sitting business unless you want to hire an assistant pet sitter if you get too many clients.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
If you’re an animal lover, a pet sitting business can be rewarding and fun. It’s an easy business to start and manage, and it doesn’t cost much to get going. You can run your business from home, grab a piece of a growing market and make good money.
Eventually, you could even use your profits to start a pet daycare, and have an even more lucrative company. Now that you’ve studied what it takes, go ahead and put your plan together and get ready to launch your new pet sitting business and make some money!
You can start a pet sitting business for around $1,700. Costs include a website, insurance, and software to manage your scheduling. The highest cost is the website, which should have online scheduling options.
Prices for pet sitting are about $30 per day, or $75 for overnight sitting. If you build up a good client base you could sit for 5 – 10 pets a day and make a nice bit of cash.
You may need business licenses and permits at the state and local levels. Check with your local governments for requirements or visit MyCorporation’s Business License Compliance page.
You don’t have to be certified, but more and more customers are looking for certified pet sitters. It will add to your credibility and help you get more customers. You can get certified through the National Association of Professional Pet Sitters.
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