Biz, How profitable would it be to open or purchase a dog kennel/daycare. I've been looking online and operations that cost around one million to start can have 300-500k in gross income. Even after EBITA you could make more than 10% of your original investment back year over year. So my questions are,
How much to open a doggy daycare?
How much could I expect to make?
Would it be better to buy a pre-existing site?
What financing options are available for opening a new one?
Thanks in advance guys, I hope that other people might find this thread useful/insightful as well!
If the noi is around 500k for this kind of business and the cost of entry is 1ml that is a 50% YOC and should already raise some flags about how your info is skewed (see "too good to be true") . I would suggest you dig a little deeper.
Go to work for one for a year. Learn everything you can. Copy or take pictures of any sort of financial data you can get your hands on. Once you have a idea how things work, where the money is, where the liabilities are, then you can think about opening one.
Check out some of these for sale here. A large amount of them have cash flows of 150k-300k with the purchase price being 600-1000k. This just doesn't appear to be correct. There is no way if I pay 650k I'll be making 170k a year off of it... Right?
Look at this, for example, I found it in an appendix for a dog daycare business plan. The Owner structured in salaries of 355k at the third year. That is a crazy high return with such low costs.