Loveable, obedient, and entertaining, dogs make excellent pets. The $2 billion US dog and pet breeding industry is due to the fact that many dog lovers select their favorite breed that holds a special place in their hearts. In addition to caring for and enjoying dogs and providing people with the pet of their dreams, you may gain a portion of that market if you decide to breed dogs.
It will require time, effort, and knowledge to establish a dog breeding business, though, and there are numerous obstacles to overcome. The material in this step-by-step manual is all you’ll need to launch a successful dog breeding enterprise.
Step 1: Find Out if this is the Right Business for You?
Positives Vs Negatives
| Dog Days: Take care of lovely dogs and puppies. High Demand: Since who doesn’t adore an adorable puppy? Never leave your house: Breed dogs there. Time-consuming: Breeding dogs is a full-time job. | Expensve: Costs for immunizations and veterinary care quickly mount up. Knowledge Required – You must have a thorough understanding of breeding. |
Industry Trends
- Industry size and previous development – The US dog and pet breeding market is estimated to be worth an astonishing $2 billion by market researcher IBISWorld.
- Forecast for growth: Despite a little downturn in recent years, the business is nevertheless enormous and ripe with opportunities.
- Number of establishments: In 2021, there were over 200,000 dog and pet breeders in the US.
- Employed: There are more than 219,000 people working in the sector.
Cost of Starting Dog Breeding Business
A dog breeding business can be launched for between $4,500 and $11,000. The costs will change depending on how much you shell out for your first female dog, your first stud fee, your vet fees, and equipment like kennel cages. Courses on breeding are also included. The AKA offers classes that cost somewhere between free and $60 per.
Investment Items:
- Canine crates
- Pet bowls
- Both collars and leashes
- Dog beds and throws
Is Dog Breeding Business Profitable?
There can be up to three litters each year for female dogs, with an average litter size of six puppies. When they are 8 to 10 weeks old, puppies can be sold. Depending on the breed and condition, puppies might cost anywhere between $500 and $3,000. The best pedigree canines should be your priority. After paying for feeding and veterinary costs, you should have a profit margin of roughly 70%.
Assuming a 70% profit margin, you will have $36,000 in annual revenue and around $25,000 in profit in your first or second year if your one female has three litters of six puppies each year and you sell each puppy for $2,000 each. Your annual income will increase to about $110,000 and your profit will increase to more than $75,000 as your brand becomes more well-known. You can produce nine litters every year by adding two female dogs. Only three ladies, to boot!
Entry Barriers
- To properly care for your dogs, you need enough space both indoors and outside.
- It’s essential to have in-depth understanding of the breed and pregnant dog care.
Step 2: Create a Strategy
Identify a Gap
Analyze the offerings, costs, and feedback from local dog breeders by conducting research on them. Finding a market gap to fill is what you’re after. Maybe there isn’t a Bulldog breeder in the neighborhood.
If you want to attract a specific clientele, you can think about focusing on a particular area of your company, such as exclusively breeding certain breeds of dogs.
Solutions
- Having a variety of breeds is an option as well as specializing in one kind. You must also choose if you will offer to spay or neuter the dogs for your clients once they are adopted or whether you will provide any other kind of follow-up services, such as training or medication. A burgeoning market that may present more opportunities is that of pet medications.
Pricing
From $500 to $3,000 might be paid to dog breeders for puppies. The type of breed will have the biggest impact on your cost. The cost of food and veterinary care will be continuing. A 70% profit margin is the ideal target.
The Step By Step Profit Margin Calculator can be used to calculate your markup and final price point once you have an understanding of your costs. Keep in mind that the launch price may need to be adjusted if market conditions justify it.
Target Market
Dog lovers will be your primary target audience. The AKA has found an interesting trend: millennials possess the majority of purebred dogs. Sites like Instagram are a good place to look for this target market.
Location
You could wish to start your business from home in the beginning to save money. However, as your dog breeding business expands, you could need to rent a building and will probably need to hire personnel for a variety of positions. Sites like Craigslist, Crexi, and Instant Offices are good places to look for rental opportunities for commercial space in your area.
Consider these general guidelines when selecting a commercial space:
- Central site that is reachable via public transportation large, well-ventilated, and well-lit
- As your firm expands, you can extend your flexible lease.
- Unrequited big repairs or renovations, ready to use space
Step 3: Write a Business Plan
A plan is important for any business. This will help you guide your new business through the launch process and keep your eye on your main goals. A business plan also helps possible partners and investors understand your business and its goals better:
- Executive Summary: A brief outline of the whole business plan that should be written after the plan is done.
- Business Overview: A summary of the company’s goals, vision, purpose, assets, and control structure.
- What we make and what we do: Explain in detail what you’re selling.
- Do a SWOT analysis and look at market trends like changes in demand and growth opportunities.
- Competitive Analysis: Look at your key rivals’ strengths and flaws and make a list of what makes your services better.
- Sales and Marketing: Look at the unique selling points (USPs) of your business and come up with sales, marketing, and promotion plans.
- Management Team: An overview of the team’s tasks and professional backgrounds, as well as a business structure.
- Operations Plan: Your company’s operational plan includes how it will get supplies, where it will put its office, what its most important assets and tools are, and other practical details.
- Financial Plan: A three-year plan for money, including start-up costs, a break-even analysis, predictions of profits and losses, cash flow, and a balance sheet.
- Appendix: Add any other papers related to money or business.
Step 3: Create a Marketing Plan
Some of your business will come from passersby or people who find you online, but you should still spend money on marketing! Getting the word out is especially important for new businesses because it will bring in more customers and make people more aware of the brand.
Link your website to your social media accounts once your site is up and running. Social media is a great way to market your business because you can make posts that are interesting and sell your goods.
- Facebook is a great place for paid ads because it lets you target specific groups, such as guys under 50 in the Cleveland area.
- Instagram: Same perks as Facebook, but it’s for a different crowd.
- Website: Search engine optimization (SEO) will help your website show up higher in appropriate search results, which is a key part of making more sales. Make sure your website has clear calls to action. Try changing the size, color, and placement of calls to action like “Book Now” This could bring in a lot more customers.
- Google and Yelp: Getting mentioned on Yelp and Google My Business can be very important for getting people to know about your business and buying from you.
- Publish a video — Publish a video showcasing your puppies. Try being humorous, and it might become popular!
- Email marketing/newsletter – Send consumers and prospects regular emails as part of your email marketing and newsletter strategy. Personalize them.
- Blog creation – Create a blog and post frequently. Share on many websites and vary your content.
- Paid social media advertisements – Use sites that can help you contact your target audience and run focused ads.
- Pay-per-click advertising – Use Google AdWords to appear in search results more quickly. Do some keyword research beforehand.
- Create a podcas – Doing so enables you to engage with your audience on a personal level.
- Create a webinar – Discuss your dog breeding with a video seminar, competence online.
- Case studies – Demonstrate how your puppies made a family happier.