Last Updated: February 7, 2023 • Visit Blog Homepage

Reducing operating costs is a critical aspect of running a successful dog daycare. By reducing expenses, you can increase your profits, invest in improvements and expand your business. When you're first starting your business, you might not be thinking too much about expenses because you're only thinking about the potential revenue. However, lowering your expenses is a great way to increase profit, even with the same revenue.

Here are five ways to reduce operating costs in your dog daycare and kennel boarding business.

1. Implement Energy-Efficient Solutions

One of the largest expenses for a dog daycare is energy costs. Implementing energy-efficient solutions can significantly reduce your energy bill. Consider replacing old light fixtures with energy-efficient LED lights, upgrading to Energy Star certified appliances, and installing a programmable thermostat to control heating and cooling. These upgrades can reduce your energy usage and lower your monthly bill. Though you might have to make an initial investment in these upgrades, they'll eventually pay for themselves. Look at people with solar panels. After the initial investment, you can immediately start recouping your investment by paying less in monthly power bills.

2. Streamline Your Purchasing Process

By streamlining your purchasing process, you can save money on the cost of goods and supplies. Consider working with a supplier who offers bulk discounts (Chewy offers great bulk rates), or negotiate prices with multiple suppliers to get the best deal. Implement a purchasing system that tracks your expenses, and make sure you are only ordering what you need to keep your inventory at a minimum. You'll want to make sure that you're only purchasing enough of the supplies you need in the current moment. If you're only selling one or two Kong toys per week, there's no use in buying 100 and storing them at your facility. Track your inventory over time and make sure you're only buying as much as you need (while still utilizing bulk discounts when applicable).

3. Utilize Online Business Management Software

Technology can help you streamline your operations and reduce operating costs. For example, consider investing in a software system that tracks your expenses, manages your scheduling and handles customer communications. By automating many of these tasks, you can reduce the need for manual labor, and free up your staff to focus on more important tasks. DoggieDashboard is an affordable online software platform that you can use to manage your expenses, store pet data, schedule appointments and more. It's free for the first 10 pets you save in your database, so you can use it for free while you're starting out and see if it's right for your needs.

4. Optimize Your Space

Optimizing your space is another way to reduce operating costs. Consider ways to maximize your space, such as rearranging your play areas or adding shelving to store supplies. Do you really need that large storage shed that you're renting when you have an unfinished basement at your facility? Add some shelving and start storing your equipment downstairs and save yourself the monthly rent on that storage shed. You can also reduce the amount of space you need by implementing a dog-to-handler ratio. By optimizing your space, you can reduce your monthly rent, property taxes, and utilities expenses.

5. Outsource Non-Core Functions

Finally, consider outsourcing non-core functions to reduce operating costs. For example, you could outsource your cleaning and maintenance tasks to a professional cleaning company. By outsourcing, you can reduce the need for additional staff and free up your employees to focus on more important tasks. Additionally, outsourcing can often be more cost-effective than hiring additional employees. You'll want to talk to your business attorney, but utilizing 1099 contractors can be a great way to save money.

There are many ways to reduce operating costs in a dog daycare. Some of them are low-hanging fruits and others might require a substantial investment. By implementing energy-efficient solutions, streamlining your purchasing process, utilizing technology, optimizing your space, and outsourcing non-core functions, you can increase your profits and improve the overall success of your business. It is important to continuously evaluate your expenses and find ways to reduce costs in order to maintain a healthy bottom line. Always remember, you can increase your profit by lowering your expenses.

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