How to Start a Dog Breeding Business

Dog Breeding Business

If you are a dog lover, then starting a business centered around dogs would be a lucrative career option for budding entrepreneurs. Breeders often specialize in one certain breed and then select pairings carefully to pass on the best qualities to the puppies. Owning a dog breeding business may seem rewarding but it might have quite a few challenges. You have to have an idea of setting up the business, knowledge of evaluating potential buyers on certain criteria, breeding operation, and even maintenance.

Doesn’t it sound engaging to start a dog breeding business? If yes, let’s understand who this is right for!

Who is this business right for?

If you have an entrepreneurial bone and love spending time with dogs, then you must try your luck in the dog breeding business. Besides the sheer inclination towards these adorable creatures, one who has knowledge of breeding dogs or is experienced in nursing female dogs during their labor is a great fit for this business. Moreover, those who have the physical condition to care for or play with puppies are ideal candidates to start a dog breeding business.

Do you know, approximately 2 million puppies are sold every year in the US? The market size for pet breeding is $2 billion in 2020 in the US alone. Hence, this blooming industry has a lot of scope for money-making.

Though there is a constant rise in demand and popularity of different dog breeds, the prices fluctuate quite often that affecting the dog breeders or the business owners. It is considered that social media platforms and the entertainment world have got to play a vital role in shooting up the demand as well as the prices.

For example, a great demand for Dalmations was noticed after the movie- 101 Dalmatians. Even Huskies became quite popular after Games Of Thrones.

Hence, the breeders or the business owners always have to be at par with the trends and must have an alternative when the demand for a specific breed drops.

This is a great business idea and to get your business afloat we have put together a guideline that will make your business legally compliant. Check it out!

11 Steps to start a dog breeding business

To start a new business, you need to have proper planning to cover up every aspect. Follow the below guideline to get an idea for your dog breeding business.

Step 1: Write an effective business plan

The next step after coming up with an idea is to get your business plan ready. Create a clear route map for your business and discover the unknown factors. To start with, chalk out starting cost, target market, rates, and other variables like business expenses, naming your business, etc.

Expenses and pricing factors play a vital role in business planning. If you want to keep your business expenses low, start with one female dog. This would keep the feeding cost, veterinary cost, and registration fees minimal. Moreover, it becomes easy to house and as you get puppies you can proceed further with reinvestment.

Step 2: Establish your business entity

Business planning is followed by crafting your business structure. Establishing your business as a legal entity is essential for easy operation and helps in avoiding legal complications. The most common business structures are sole proprietorship, partnership, LLC, and Corporation. Legal entity protects your business in cases if your business is sued.

Step 3: Register for taxes

Once you are done with a legal structure for your business, get it registered. If you have the intention to expand your business, you must get it registered for a variety of states and federal taxes.

To register for federal taxes apply for EIN for free through the IRS website.

Step 4: Give a name to your business

Choosing a perfect name for your dog breeding business is pretty challenging. As it needs to be attractive as well as available for use. Check through your state’s business records, Federal records, social media platforms, or web domain to track the availability of names.

Planning to run your business as a sole proprietorship? Then operating as a DBA would be beneficial. Check out our article on DBA to know more about this!

Step 5: Choose your desirable business location

Unlike other business ventures, you need a proper place to maintain your dog breeding business. Most breeders prefer to set up a kennel or safe yard area for puppies away from home for proper maintenance, care, and hygiene. In fact, it could be a bit noisy hence, select location tactfully so that neighbors don’t get agitated.

Step 6: Apply for business licensing and permits

Failing to get your business licensed may not only lead to legal implications but may also shut down your business. Dog breeders or business owners need to license through USDA once they exceed four dogs. You can even register in the American Kennel Club to increase your business demand.

Some important points:

  • One who breeds more than 20 dogs within 12 months must register legally.
  • Signing the service agreement by the clients before starting a new project is a must for a dog breeding business.
  • Dog breeder contract is a must for both breeder and buyer.
Moreover, the registration, licensing, or permit requirements vary in other countries as well.

Step 7: Open a bank account for your business

Opening a dedicated business bank account is essential for the protection of your personal asset. This helps track business expenses and income seamlessly and risk-free. Get credit cards for your business with higher lines of credit and better interest rates for building a strong credit history.

You can also look for net-30 accounts. This helps businesses receive inventory quickly and speed up cash flow. Ensure that your business has an effective yet smart accounting system for hassle-free invoicing, estimate making, or even for creating purchase orders effortlessly.

Step 8: Formulate your marketing plans

After planning your business and establishing your client base, work on your promotional strategies for marketing your business. It includes creating a website, social media presence, networking, online advertisement, etc. Participating in local breed-specific clubs or in online groups may seem a good way to start your business promotion.

Step 9: Design an attractive website

If you are wondering how to reach enthusiastic dog lovers, then design an engaging website. As per research, 91% of adults take the help of online search engines to look for information. Work on optimizing your websites to improve online performance. Moreover, this will also help in branding and will let you stand out from your competitors. Keep updating your website at regular intervals for better results.

Stuck in a busy schedule? Don’t let your website suffer for that. Learn how to update websites effortlessly even when you have a tight schedule.

Step 10: Get insurance to secure your business

Thinking whether it’s urgently necessary or not? Do not dare to keep this for ‘tomorrow’. There are primarily three types of insurance- General liability insurance, Commercial property insurance, and Worker’s compensation insurance which are essential for your business. These would cover all your business expenses like lawsuits, medical bills, lost wages, etc. Even these provide protection from property damage and help provide accidental coverage to the employees.

Step 11: Hire efficient staff

Managing your own business is cool, but you may need help when the business grows. As per research, approximately more than 2.19 people work in the breeding industry. There are a lot of work and work opportunities available hence, look for efficient and experienced professionals.

Moreover, do keep in mind to add the expenses related to the recruitment process. As per estimated calculation, on average dog kennel staff earns nearly $24k yearly and about $12 per hour. Additionally, health insurance, paid time off, etc is some of the factors that need to be counted while budgeting your business expenses.

How much can you make from a dog breeding business?

How much one makes out from a dog breeding business depends upon the type of dogs they breed and the number of litters it breeds per year. The approximate monthly wage is $4000-$16000. High-end breeds can give more money and participate in competitions or dog shows can also help in adding revenue. Moreover, winning shows will give puppies better pedigrees.

Cost to start a dog breeding business?

One can start with just $500. Whereas, a large business that starts with many dogs may cost around $15k-$20k. The amount varies and depends upon factors like property renovation, kennel cost, registration, feeding, health, and other business operational cost.

What do you need to start a dog breeding business?

Besides property and cash, what you need to set up a dog breeding business are dog breeding and training experience, knowledge of dog genetics, and first-aid and interpersonal skills.

Who is the target market for the dog breeding business?

Most of the dog breeding business earns money by selling puppies and the main target audience is enthusiastic dog lovers. Even pet stores are also a great source of revenue for dog breeding businesses and provide a stable client base.

How much can you charge your customers?

The cost of each puppy depends upon the pedigree of the parents. Hence, business owners charge around $500-$3000 to their customers for each puppy.

How to keep customers coming back?

Carefully considering pedigree and genetics can help breed the best quality puppies. So, to keep customers coming back, provide the best quality puppies possible.

Is dog breeding illegal?

Dog breeding is not illegal. Only breeders need to comply with the necessary licensing and welfare laws of their region to avoid legal implications.

Is breeding dogs not good?

It’s good until one puts the dog’s needs first and the business aspect later. It is good if the entire process is followed ethically.

Bottom line!

It’s justifiable to breed quality dogs but must also ensure that they have a good home to go to. If you are enthusiastic about a particular breed of dog or have enough experience in dog breeding then you must go-ahead to start your own dog-breeding business.

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