Last Updated: March 3, 2023 • Visit Blog Homepage

Managing the finances of your dog daycare or kennel business is critical to your success and the long term sustainability of your business. Whether you're just starting out or have been in business for a while, it's important to have a solid understanding of your finances and implement effective financial management practices. Unfortunately, many small businesses fail because they don't have accurate financial projections to work off of when they are starting out their business. It's easy to think that you'll be making 100k a year within the first year, but that might not be true and you have to be ready to weather the storm in order to make it to the all important second year. Most new businesses fail in the first year. Let's not have yours be one of them.

Here's a look at some of the key considerations and best practices for managing the finances at your dog daycare or kennel boarding business.

Create a Budget and Stick to It

One of the most important steps in managing your finances is to create a budget (and stick to it!). NerdWallet has a nice template here. Your budget should include all of your expected expenses and revenue, so you have a clear understanding of your current and future financial situation. Be sure to include all of your fixed expenses, such as rent, utilities, and salaries, as well as variable expenses, such as food and supplies for the dogs in your care. Its easy to get carried away with buying extra supplies that you think will be necessary or buying extra equipment that you think your business really needs. Do you need to have the online webcams at the very beginning, or can you invest in them once your business starts making some more consistent money? Ask yourself these questions before making big purchases. By having a strict budget that you follow, you can see if and when you start to go outside of your set limits and you can reign yourself back in until the end of the month. When the money ends, the business closes, and we don't want that.

Track Your Expenses, Even the Small Ones. They Add Up.

In order to stay on top of your finances, it's important to track all of your expenses on a regular basis, even the tiny expenses that you don't think about. This can help you identify areas where you may be overspending and adjust your budget accordingly. Consider using a software system or app to help you track your expenses and keep your finances organized. DoggieDashboard offers online software for pet cares businesses that helps keep track of revenue and expenses, among other things. There are even graphical reports you can see how your revenue and expenses fluctuate from month to month. Just like setting a budget, having a good eyes on your expenses is a great way to ensure the longterm viability of your business. If you're not tracking your expenses, you might not realize that you're spending way too much on those free dog treats that you're giving out every day at pick-up. Or what about office supplies? $10 for coffee filters twice a month adds up. Once you start looking at your expenses, you'll see where your money is getting spent and you can start taking control of your finances.

Monitor Cash Flow and Use Future Projections

Monitoring your cash flow is essential to ensuring the financial stability of your business. This means tracking how much money is coming in and going out of your business on a regular basis, and making adjustments as needed to maintain a positive cash flow. One of the hardest parts of running a business is projecting how much money you are going to be making in the coming months. Without accurate forecasts, it's tough to know if you'll be able to make it through until the end of the month. By having a good idea of how much money you're bringing in on average, month to month, you can have a better idea of where you'll stand at the end of this month. Check out this dog daycare financial projection spreadsheet. It can help you "look into the future" to see where you'll be at at the end of the year.

Invest in Technology to Make Your Life Easier

Investing in technology can help you streamline your financial management processes and make it easier to stay on top of your finances. For example, using a pet care management software system like DoggieDashboard can help you automate many of the tasks associated with running a pet care business, including financial reporting, invoicing, invoicing, etc. Time is money and if you're spending the majority of your day updating the whiteboard of appointments, you're wasting valuable time that you could be using to invest in the future growth of your business. It takes money to make money and making a small investment in dog daycare software might help you out in the long run. If you decide to go with DoggieDashboard, you can use it for free for the first 10 pets and clients you save in your database. This gives the chance to see if it will really be worth the investment.

Seek Professional Advice from Accountants or Consultants

If you're not confident in your ability to manage your finances effectively, consider seeking the advice of a professional. This could be a certified public accountant (CPA) or a financial advisor who specializes in helping small business owners. They can help you understand your finances, create a budget, and implement effective financial management practices that will help you succeed. Many cities (Chicago for example) offer services to help their small businesses thrive. You might also want to look into programs at local colleges. There's a chance that the local university is looking for a business to do a case study on and you might get a free financial audit from one of their business classes. It never hurts to ask.

As you can see, managing the finances of your dog daycare or kennel business is essential to your success. By creating a budget, tracking your expenses, monitoring your cash flow, investing in technology, and seeking professional advice when needed, you can ensure that your finances are in good order and your business is on a path to success. Running a business, when it's making money, is a great feeling. However, running a business that is losing money or always on the edge of failure is not a pleasant experience. Fy following the tips above, you can hopefully have your business experience be a pleasant one.

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