Steps to Starting a Dog Breeding Business

Step 1: Write your Business plan

After coming up with the idea, the next step in starting your business should be to write a business plan. Not only will a bank require you to have a business plan, but multiple studies have shown that a business plan helps increase the odds of starting a successful business.

Related:
How to write a business plan
Free sample business plans

Step 2: Form a Business Entity

A business entity (also called a legal entity and business structure) refers to how a business is legally organized to operate. There are four primary business entities to choose from, which include the sole proprietorship, partnership, corporation, and Limited Liability Company (LLC). Each type of entity has its own pros and cons, such as liability exposure, costs, and administrative requirements.

Related: Comparison of Business Entities

Step 3: Name the Business

Finding the perfect business name for a dog breeding business can be challenging. Not only does the name have to resonate with your customers, but it also has to be available to use.

Step 4: Select your Location

Because of the frequent care that dogs and puppies need, most breeders run their businesses out of their homes. Some renovation or expansion may be needed to create kennels and safe yard areas for the dogs and puppies. Since you are working with animals that will sometimes be noisy, be sure to check zoning and covenants in case you have a neighbor that doesn’t approve.

Related: Choosing a business location

Step 5: Apply for Business Licenses and Permits

A commercial dog breeder license is needed through the US Department of Agriculture (USDA) under the Animal Welfare Act (AWA). See the Dog Breeder Resource Guide.

Additionally, most states have laws and licensing requirements for commercial pet breeders once they exceed four dogs.

In addition to required licenses and requirements, you may also want to look into certifications from organizations like the American Kennel Club, which will add credibility to your operation.

Last, most states will require a dog breeder to obtain a sales tax permit, and some breeders will also need to get an Employer Identification Number (EIN).

Though greatly increasing dogs’ value, an optional cost is American Kennel Club (AKC) registration.

Related: Common business licenses, permits, and registrations by state

Step 6: Open a Business Bank Account

Keeping your business and personal finances in separate business bank and credit card accounts makes it easier to track the business’s income and expenses.

Step 7: Get your Marketing Plan in Place

After defining your target market and doing thorough market research, it’s time to create a promotional strategy. A dog breeding business’s marketing activities may include building a website, maintaining a social media presence, networking with local dog trainers, and even advertising online. Marketing costs will vary depending on the type of activity.

Related: Low-cost ideas to market a new business

Step 8: Get Insurance

A dog breeding business needs several types of insurance for full coverage:

• General liability insurance policy protects the business if customers are ever hurt while on the property. Liability insurance can help to cover expenses like lawsuits, fees, and medical bills.

• Commercial property insurance can cover the cost of damaged or destroyed equipment during an event like a fire.

• Worker’s compensation insurance helps cover expenses like lost wages and medical bills that can result if an employee is ever injured while on the job.

The cost of insurance policies varies depending on factors like the business’s location, the value of its equipment, and the number of employees on staff. To get the most accurate idea of what to budget for insurance, request quotes from multiple providers. When comparing the quotes, don’t just look at how the premiums stack up. Instead, be sure to also consider other details like coverage limits, exclusions, and deductibles.

Step 9: Hire Employees

Owners of smaller dog breeding operations can often manage the entire business by themselves, but it may be necessary to bring in help as a business grows. According to ZipRecruiter, dog kennel staff earn an average salary of $24,075 per year or approximately $12 per hour. Depending on the location and a worker’s experience, the salary can be as low as $15,000 and as high as $31,500.

In addition to budgeting for employee salaries, a business’ budget also needs to include other expenses that come along with hiring staff. These additional expenses include paid time off, health insurance contributions, and worker’s compensation insurance.

Related: Hiring your first employee

How much can you potentially make owning a dog breeding business?

Dog breeding business income will depend on many factors, including the number of litters, pedigrees, breed of the dog being sold, and even the dogs’ purpose, like whether they’re intended to be show dogs, working dogs, or pets. Salary.com reports that dog breeders make an average salary of $52,549, though salaries most often range between $46,743 and $58,801.

Some of the most popular dog breeds in terms of profit, according to K9ofmine.com, include:

• Akita

• French Bulldog

• German Shepherd

• Labrador Retriever

• Otterhound

• Pharaoh Hound

• Rottweiler

• Saluki

• Samoyed

• Siberian Husky

• Tibetian Mastiff

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