Farm Diversification

As is the case with all new business proposals, it is important to fully research the market prior to launching any new enterprise.

One internet directory site lists 261 Dog Kennels in Scotland (as at December 2008).  In addition, there will be some other businesses not listed in this directory.

Location will be one important factor in the success of a Dog Kennels business.  Proximity to large populations will increase the size of the potential market, reduce the travelling distance for customers.  The level of competition from other, existing kennels should also be considered.

Existing Dog Kennels rely very much on repeat business and word of mouth recommendations so it is important to offer an excellent service to encourage this business.  This will also mean that the new business will need to invest in an effective programme of marketing at the outset, in order to attract initial customers.

Peak demand is likely to occur over the summer months, and during other holiday periods.  Therefore advertising and marketing should also be directed at encouraging customers during other times of year (if the kennels are to operate throughout the year).  Competitor businesses will include other existing kennels as well as dog-sitting and dog-walking services.

Land: A suitable area of land will be required for the number of kennels and runs together with an associated exercise area.

Buildings: Kennel units, to include bed area and individual exercise runs.  An associated service corridor may also be required.

 Buildings for feed, equipment storage and office accommodation.

 Existing farm buildings may be suitable for conversion, otherwise new buildings will be required to house the kennels, stores etc.

Labour: It has been estimated that there is an approximate need for 1 person for every 10 dogs kennelled.  This will vary depending on the hours the proprietor and staff are prepared to work.  There is likely to be more demand for labour in the busier summer months.

Bed area around £1300 per place.

Galvanised steel runs and gates – around £350 (timber runs with steel mesh may be lower cost but may be subject to chewing damage and hence have a shorter life span).

Concrete (including hardcore) - £28/m2.

Roofing (shed galvanised roofing sheets) cost will depend on size of building to house kennels.  Estimated at £15000 per 30 kennels (including steel supports), excluding erection costs.

Fencing for exercise area – variable, depending on size, materials etc.

• Bedding (with built-in heating element) £80
• Plastic animal bed £5
• Power washer for cleaning kennels £250
• Computer with internet access and business software £700
• Credit Card swipe terminal £150
• Printer £100-£500
• Filing Cabinet £100
• Closed Circuit TV system £750
• Burgler Alarm system £550
• Safe £350

Domestic facilities for staff (washroom, kitchen) – variable

• Dog Food - approximately £1-2/day/dog depending on dog size, dietary requirements
• Heating and lighting – variable, depending on type of heating
• Labour – variable, depending on number of dogs, services provided (should include NI contributions, training etc)
• Water Rates
• Animal Licence Fee approximately £45
• Insurance (Public liability, Employer liability, dog injury/illness)
• Advertising (leaflets, adverts, website creation and maintenance)
• Cleaning materials.

A very high standard of animal care is essential on the part of the proprietor and employed staff.

Availability of suitable staff may be a problem in some areas/different times of year.

All boarding kennels require to be licensed by the local Authority under the terms of the Animal Boarding Establishment Act 1963.  The licence will dictate issues such as the maximum number of dogs to be kept at any one time, minimum size of pens, construction of pens, exercise facilities, fire precautions as well as other aspects of the business.

Planning permission is likely to be required for the establishment of dog kennels.

Staff should be suitably experienced and qualified in animal care.  Training available includes:

• Diploma of Kennel Management (Animal Care College, High Street, Ascot, Berks, SL5 7HG)
• City and Guilds Level 3 Certificate in the Operational Principles of Kennels and Cattery (www.optc.org.uk)