Pet boarding and Daycare November December 2016

VOL 6 • ED 6

NOV / DEC 2016

WWW.PETBOARDINGANDDAYCARE.COM

and daycare magazine Profile of Success

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FROM THE EDITOR BOARDING KENNELS: THE DESIGN PROCESS THE TEXT BOOK FOR YOUR NEW FACILITY! Rebecca Shipman - Editor

Making its debut this fall, is a brand new book for the boarding and daycare industry. Craig McAllester’s Boarding Kennels: The Design Process will be available for purchase mid– November—just in time for the Pet Boarding and Daycare Expo in Hershey, PA! “I started designing kennels in 2003. I soon became the exclusive designer for a company that manufactured a modular kennel building for years, until the owner passed. I spent hours in lectures and attending trade shows to gain as much knowledge about the industry as I possibly could. With each new client, I gained even more experience. And since I first started, I have designed over 250 boarding kennels, animal shelters or police/military kennels.” States author, Craig McAllester.

Craig has authored a few other books, including Kennels: The Construction Process, as well as regular blogs and articles in Pet Boarding & Daycare magazine. But Craig saw the need for a detailed reference material—starting from square one—on the kennel design and building process.

“It seemed that with each passing month, I spend several hours explaining

STAFF PUBLISHER Barkleigh Productions, Inc. EXECUTIVE EDITOR Rebecca Shipman ART DIRECTOR Laura Pennington GRAPHIC DESIGNER Jenn Barraclough WEB DESIGNERS Lance Williams Luke Dumberth PRESIDENT Todd Shelly CHIEF OPERATIONS OFFICER Adam Lohr DIRECTOR OF MARKETING & CLIENT RELATIONS James Severs

the same things, over and over and over. If they only had a reference,” says Craig.

“So often, people come to me with a list of wants and desires for their kennel that may include items such as in-floor radiant heating. And questions like 'Why must I remove the water from the air; it has already evaporated? Can’t we use a sprinkler system to wash the kennel and make it self–cleaning? How do I soundproof my kennel; it's so loud, the neighbor are beginning to complain,” McAllester continues.

Even with going into great detail, the book is very easy to read and understand. It includes many color photos, diagrams and even a glossary to define

MARKETING COORDINATOR Alex Robertson CONTACT General: (717) 691-3388 info@barkleigh.com Editorial: rebecca@barkleigh.com (ext. 225) Advertising: james@barkleigh.com (ext. 224)

some of those foreign design and construction terms.

“It is my hope that the reader will use this book as a reference not only for building their new facility, but also after the business is open, money is coming in, and questions arise. Make notes in the margins, and keep all your thoughts on boarding kennel design in one place. Who knows, maybe you will build another kennel one day. If you can’t find the answer, give me a call. If I don’t know the answer, I know who does,” says Craig.

Boarding Kennels: The Design Process by Craig McAllester will be available for purchase mid–November at Barkleighstore.com. This is the new “must have” book to make your dream of expanding, building new or a remodeling a kennel a reality!

4

PET BOARDING & DAYCARE

Copyright November 2016. Pet Boarding & Daycare is published bimonthly by Barkleigh Productions, Inc, 970 West Trindle Road, Mechanicsburg PA 17055.

Postmaster: Send change of address to Pet Boarding & Daycare c/o Barkleigh Productions, Inc., 970 West Trindle Road, Mechanicsburg PA 17055. No part of this publication may be reproduced without written permission of the publisher.

Editorial offices: 970 West Trindle Road, Mechanicsburg PA 17055. (717) 691–3388 FAX (717) 691–3381 Email: info@barkleigh.com

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and daycare magazine N OVEM B E R / D E CE M B E R 2 0 1 6

CONTENTS

GAINING CUSTOMERS FROM THE MOST

POPULAR ZIPCODES CAUTION

26

PET LODGE PET RESORT – THE ULTIMATE DESTINATION FOR PAMPERED PETS

Behavior 8

WHICH COMES FIRST, THE CHICKEN OR THE EGG?

CAUTION

CAUTION

42

CAUTION

What We've Learned

Industry News 46

20

The Changing Trend in Dog Daycare

50

New Products

52

Classifieds

5 Reasons You Should Stop Renting

and Buy Your Next Facility

PET BOARDING & DAYCARE

New Law a Victory for New Jersey

Pet Facilities

CAUTION

30

CAUTION

Canine Influenza H3N2:

Doing Well By Doing Good and Why It's Effective

36

CAUTION

STARTING A

16

Facility

CAUTION

Animal Health

One–On–One or Group Training: Which is Best for Your Client's Dog?

Business

CAUTION

NEW PROJECT:

PROFILE OF SUCCESS:

CAUTION

6

CAUTION

14

CAUTION

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ANIMAL BEHAVIOR

ONE -ON- ONE

GROUP TRAINING

OR

WHICH IS BEST FOR YOUR CLIENT'S DOG?

By Laura Pakis How often have you heard dog owners say, “My dog flunked obedience class.” With so many different methods, settings, and styles of dog training, obedience problems can inevitably result — depending on what they choose and the temperament and personality of the dog.

S

imilar to humans, dogs learn in a variety of ways. And just like humans, some dogs take longer to grasp a concept than others.

One theory for an average dog learning a task is as follows: 24 hours: If not repeated; the memory is absent.

1 to 5 Days: repeated daily; the task is in short term memory.

1 to 30 Days: repeated daily; the task in long term memory.

Improvement in a dog’s performance continues when training is effective. Of course environmental factors (trainer effectiveness, task complexity, lesson style, etc.) influence the time frame, as do

8

the dog's genetic factors.

Another statement of expected learning curve is more profound. An average student with an average dog needs about 3 months for a task to be 85% reliable. A good student with a good dog decreases the number of weeks to 10 for 85% reliability. And a poor student with an average dog increases the amount of time for 85% reliability to about 4 months (most likely due to inconsistencies and poor timing).

So what type of setting is best to train a dog?

There are several factors to consider before deciding whether a group class or private lessons fit a

PET BOARDING & DAYCARE

client’s situation and personality. Time, money, what their goals and needs are, as well as knowing what environment works best for the dog’s personality and temperament are all factors.

The benefit of a group obedience class is, economically, it’s more affordable. Many opt toward the group because of this, but once they enter the group, they find that the other benefits are the camaraderie; the friendships they gain, or the commiserating of their dog’s problems to one another.

Classes can also offer a competitive edge that pushes members to improve and “keep up” and a great energy is created with a group of people working

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L INDIVIDUA TRAINING

nt us on clie • Full foc g d trainin • Detaile ds d metho • Tailore

GROUP TRAININ G

• More

• Group

• Comp

10

affordab camara

etitive e

le

derie

dge

hard and feeding off that energy.

Human nature is such that we enjoy doing things in a group; however group classes are not designed to be effective with all dog owners or puppies.

If someone is looking for training that will be safe, relationship-based, and 100% focused on them, then private one-on-one dog training is the best bet.

Some argue that private training yields the best results because the trainer is going to gear every session towards their client’s goals using training methods appropriate for their dog’s personality and temperament. Private lessons provide much more detail to training. This is a disadvantage of group classes where the trainer’s focus is divided among several individuals and a variety of dog personalities.

Group classes can be set up to be more successful by reducing the number of participants to around 6 or less, or arranging it so the dogs are of

PET BOARDING & DAYCARE

similar personality and temperament.

Offering aggressive dog classes or fearful dog classes can be beneficial since many of these dog owners already have the stigma that they have a “problem dog”. Working with other owners of similar dogs in small groups can also provide the catalyst to build confidence in the owners.

Another possibility that works well is to use both environments to your advantage. Start off the dog’s training using private lessons. Then once the dog has a solid foundation of obedience, continue training using group classes to improve command reliability or develop a specialty such Therapy Dog or Agility.

It is difficult to say that one environment is better than the other.

Both types of training environments have their advantages and disadvantages.

One thing they have in common is they help dog owners stay focused on their goals for a well-mannered dog. The

by

No matter which training environment your client chooses, it is important to remember that

TRAINING NEVER ENDS Just like any good relationship, you have to keep working at it.

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benefits of either type of training are accountability and scheduling. For many people, making an appointment with a trainer helps them stay true to their commitment to training their dog.

No matter which training environment your client chooses, it is important to remember that training never ends. Just like any good relationship, you have to keep working at it. A six or eight week course is not a lifetime guarantee of good behavior, nor is a series of private lessons. Training is an investment in gaining the tools to maintain a dog’s good behavior.

Obedience is a way of life and one every dog owner should participate in. n

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BUSINESS

GAINING

CUSTOMERS FROM THE MOST

POPULAR ZIPCODES

By Alain Parcan, Market Hardware, Inc. Web Marketing experts have frequently debated the risks and benefits of different forms of marketing. But one thing they all agree on is that when it comes to marketing, targeting the right customers is always a strategy that pays off.

G

eo–targeted Advertising is the quickest, most measurable way to generate inbound leads from web-savvy consumers in the most profitable Zip Codes. It’s the 2016 term for going after specific customers in the most affluent areas that are closest to your business location. In other words, while your competitors are sinking more and more marketing dollars into their efforts, you’ll be using those same dollars but marketing smarter.

Who Wouldn’t Want To Hand-Pick The Zip Codes To Work In? The top pet care business owners know that the best customers reside in certain Zip Codes. The ones that require the least travel time to get to your facilities, contain the highest paying customers, and live in areas where residents are more likely to have pets.

14

Take some time to think about which Zip Codes would be most important if you could pick them yourself.

There are a few providers that offer Geo–targeted Advertising, and naturally, each has their set of pros and cons. Our team of experts suggests a short list of Facebook and The Weather Channel (yep—The Weather Channel can in fact provide highly effective Web Marketing tools. Read on to find out how).

The main benefit to Facebook is its large user base, as well as the ability to target specific behavioral interests (like pet care, dog training, pet grooming, for example). Facebook encourages its users to indicate their favorite hobbies, movies, books and more, which allows businesses to customize their ad campaigns around those interests.

Users who have indicated that they love pets are more likely to click on an ad promoting grooming, training or PET BOARDING & DAYCARE

boarding. It can also be used by anyone, which unfortunately means there is more competition for placement, making your costs higher than marketing with The Weather Channel.

The benefits of marketing with The Weather Channel are that if you’re able to work with one of their selected providers, you can target specific Zip Codes and even take it a step further by incorporating weather elements.

Here Are A Few Creative Ways To Make It Work: • Promote pet training on warmer days, when web users might be considering spending time outdoors at a park.

• Promote pet grooming during a stretch of severe storms, when pets may have spent time outdoors getting their coats messy.

Oh and one more bonus…

There is a well-known marketing tip that says to always put your brand where your customers are. Before and during severe weather conditions, they tend to be in their homes and on their electronic devices—usually looking up when those severe conditions are going to end, or killing time on Facebook.

There is a well-known marketing tip that says to always put your brand where your customers are. Before and during severe weather conditions, they tend to be in their homes and on their electronic devices—usually looking up when those severe conditions are going to end, or killing time on Facebook.

By placing your ads on platforms like Facebook and The Weather Channel, you can reach their large user bases at the times that matter most.

So it all makes sense, but how much will it cost? The ads only cost a few cents each time they’re displayed, so you can set up a monthly budget that works for your business. For some contractors, that might be $500 per month while

others might be willing to spend a few thousand dollars per month. The only other costs are for designing the ads and setting up the campaign. You’ll have to pay a web designer a one-time setup fee which will likely be a few hundred dollars, and a much smaller ongoing management fee to make sure you’re targeting the right keywords on an ongoing basis, and going after those specific weather conditions that make the most sense.

Putting It All Together The best Web Marketing approach utilizes a comprehensive plan with several different strategies. Allocating your resources properly could help your

business become the premier choice in your industry; not doing so might result in one of your competitors adopting that role. Talk to a trusted partner to figure out how you’re balancing your services and consider adding Geo– targeted Ads if you have room in your budget to do so. n Alain Parcan is the Director of Marketing for Market Hardware, Inc. Market Hardware helps pet care businesses compete on the Web with professional Website design and strategic Web Marketing programs, and offers special discounts for pet care businesses. You can reach Alain’s team at 888-381-6925.

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BUSINESS

DOIN G W E L L B Y

DOING

and why it’s effective

T

by Laura Laaman

16

he pet care industry is filled with people who want to “do good”. They want to surround themselves and care for furry creatures who can’t talk. These owners feel that caring for furry creatures is a good thing to do and therefore doing so provides a fulfilling and rewarding existence. Extending that perspective into a cause-related marketing program is an effective way to make a positive impact on the world and boost your bottom line.

“Doing well by doing good”, or cause-related marketing, isn’t a new concept. Supporting the community and partnering with charities is smart business and a win-win venture on so many levels. But maximizing your impact by creating a strategic and wellthought-out plan is the key to success.

PET BOARDING & DAYCARE

Steps to Selecting and Helping Other Groups: • Choose a charity that you and your staff are passionate about.

My father was a WWII veteran and helped spur my passion about canines that serve in the war. I presented this cause to my Outstanding Pet Care clients and to date, they have collectively raised over $100,000.

• Research and align yourself with a reputable charity. Spend a bit of time online and research charities.

There are numerous online, free services that will provide you with objective comparisons on a charity’s mission, goals, financial position, and leadership.

GuideStar, for example, is one that states, “We gather and

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This is a rapidly changing and highly competitive industry. OUTSTANDING PET CARE is the authority in producing exceptional results for their clients. Our consulting and training firm helps pet care facility owners realize the revenues they deserve.

SOME OF OUR MANY SERVICES INCLUDE: Constant support guaranteed to grow your business

Exclusive meetings with the top pet care facility owners in the world

Marketing & pricing guidance

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“Hiring Laura and the OPC team was a pivotal defining moment for our business. In our first year with OPC, we increased $330,000 over our previous year.”

– Hailey Seidel, Bow Dog Canine Specialists

OUTSTANDING PET CARE UNPARALLELED SUCCESS, GUARANTEED GROWTH.

1-888-735-5667 www.OutstandingPetCare.com

SHARE Y O U R

NEWS!

Share your success stories with the media as well as social media platforms, place signage in your lobby, and ask if your partnering organization can do the same.

•

disseminate information about every single IRS-registered nonprofit organization. We provide as much information as we can about each nonprofit's mission, legitimacy, impact, reputation, finances, programs, transparency, governance, and so much more.” Spending a bit of time to understand the legitimacy and performance of a charity is time well spent. You would hate to recommend a charity with a tainted image.

Choose a charity that will resonate with your target audience. Animal-related non profits are a logical choice, but consider human–animal groups like organizations supporting service animals or pet therapy.

You can also go outside of the pet industry if there is a worthy charity that catches you or your

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team’s attention.

Think outside the box. Go beyond simply accepting donations, sponsoring an event, or reserving ad or booth space.

Get involved. Offer behavior counseling for a local shelter and ask if you can put brochures or coupons in their adoption packets; host a spa day once a week for a rescue dog makeover, etc. Consider offering assistance painting a worthy group’s new addition. These provide a great benefit to the charity and a wonderful team-building exercise.

• Share your “good news” and charitable endeavors. Share your success stories with the media as well as social media platforms, place signage in your lobby, and ask if your partnering organization can do the same.

Sharing the “good news” with your database of customers can help bring additional awareness to this worthy cause.

Look at the great work foundations have accomplished. The Gates Foundation, for example, started by Microsoft owner Bill Gates, explains that it works to help all people lead healthy, productive lives. In developing countries, it focuses on improving people’s health and gives them the chance to lift themselves out of hunger and extreme poverty. In the United States, it seeks to ensure that all people—especially those with the fewest resources—have access to the opportunities they need to succeed in school and life. They have already provided over $36 billion to recipients.

In our industry, major pet retailers do their best to make a difference.

PetSmart Charities and the Petco Foundation both sponsor adoption events and they’re reported to have placed more than 400,000 dogs and cats in new homes.

•

Of course, these are huge retail businesses but they are able to speak to and connect with customers on an emotional and local basis. The good that these foundations have done and will do would not have been possible without first creating a great company.

Remember, You’re Already a Job Creator Since this business is so dependent on staff, my clients often add staff to handle their increased demand and success. Not to worry, these staffing additions are more than paid for by the increased business we’ve created. Since I’ve started Outstanding Pet Care, my clients have added thousands of jobs to their local economies. I believe this is one of the best contributions we can make. Employment adds meaning, fulfillment, and dignity to people’s lives while allowing them to provide for themselves and their families. Taking a job in this industry also means the privilege of working with pets. However, in order to hire the right people, pay them what they deserve and give them opportunities for advancement; you need to have a healthy, successful business.

Taking a job in this industry also means the privilege of working with pets. However, in order to hire the right people, pay them what they deserve and give them opportunities for advancement; you need to have a healthy, successful business.

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The fact that this industry is filled with such caring and giving people is wonderful. I take great satisfaction watching my clients serve pets, their humans, staff, and community. When done right, business can be highly rewarding and morale-boosting for yourself and staff. Is there a better win-win?

Laura Laaman is president of Outstanding Pet Care. OPC helps some of the most successful pet care facilities thrive in highly competitive markets and GUARANTEES THEIR CLIENT’S SUCCESS! If you would like to receive a complementary phone evaluation, contact the OPC team at www.OutstandingPetCare.com or call 1-888-735-5667.

PET BOARDING & DAYCARE

19

BUSINESS

THE

CHANGING

IN DOG DAYCARE

By Robin Bennett

G

one are the days when

guilty if they don't offer this service to

other dogs. Now everyone is doing

people asked “What’s dog

their pet.

it. Since this is a non–regulated industry,

daycare?” or “Why would

lots of folks see it as an easy way to

everywhere and the competition for

make money working with dogs. So

dogs?” The dog daycare industry is a

daycare dogs (and dollars) has never

they open a daycare, or start one in their

couple decades old, and daycare has

been higher. How do you compete in

home, with little overhead and high

moved from being viewed as a frivolous

this type of market? It’s no longer good

expectations. Dogs come in to play all

activity for a pet to a much needed

enough to simply “do daycare." It’s time

day long and go home too exhausted to

social outlet for a beloved family

to look at—and work to stay ahead of—

do anything with their own families.

member. Pet parents who previously

the changing trend in dog daycare.

wondered why they would want to have their dog play with other dogs now feel

20

Daycares are popping up

I bring my dog here to play with other

It used to be unique to drop your dog off for a day–long play session with

PET BOARDING & DAYCARE

Those of us who have been around the industry since it started now see several long–term problems with this

CURRENT √ TRENDS √ IN AMERICA model of doing daycare: •

•

• •

Concierge Services On Demand Transport

√

Specialized Training

√

financially sound, and keep the dogs

Technology

(for EVERYTHING)

of fitness programs and core

It’s no longer unique. Everyone

healthier by looking at a new way to run

is doing it so it’s hard to set

your daycare. How do you do it? To stay

yourself apart.

ahead of the trends in the pet industry

Keeping the dogs safe requires

you just need to look at the trends in

a high payroll expense which

society. The pet industry often mirrors

people can have services catered

can significantly reduce the

society. What people find good for

to their needs and wants.

profitability of your program.

themselves, they find good for their pets.

It’s not actually healthy for dogs

Some examples of this phenomenon:

because dogs need more breaks.

•

work for dogs.

Some current trends that you should be following in America include: •

•

Concierge services where

Uber which offers on demand transportation where you need to

The trend toward luxury hotels

go, when you need to get there.

Day–long daycare has become

resulted in the pet industry

a commodity to pet parents,

trend toward terms such as

type schools and an upswing

and when a service becomes a

lodging and resort.

in homeschooling. People want

commodity, people base their

Small, very focused Montessori

The trend toward spa services

very specialized training and

decision on price more than

resulted in the pet industry

education for their children.

anything else. Price shopping

trend toward spa days for dogs

for a daycare becomes a com-

and massages for dogs.

of technology for everything

The trend toward fitness for

from making appointments to

people resulting in an upswing

ordering products and services.

mon trend.

It’s time to change the mold, be more

•

•

•

•

An obvious increase in the use

How does this translate into the dog daycare industry? Day–long daycare will soon be outdated and replaced by more high–touch services that

SHOP THE:

cater to individual dogs and families.

Facilities that can provide enrichment and education to the family pet will be in higher demand and people will be willing to pay for those outlets.

Membership programs will begin to build in popularity among facilities where the higher demand of services require membership access.

If you are interested in staying ahead of the industry trend, here are a few recommendations to get you started:

www.shor-lineclearanceoutlet.com 22

PET BOARDING & DAYCARE

•

Offer smaller playgroups that allow for a higher quality of play for shorter periods of time.

Don’t let your best friend get sick.

Canine flu is a highly contagious respiratory disease for dogs* • Possible symptoms: coughing, sneezing, loss of appetite, lethargy, fever • Spreads directly from dog to dog and via sneeze droplets through the air • Can be transmitted indirectly (water bowls, toys, collars, leashes, hands, shoes, and clothing)

Social dogs are most at risk • Dog parks • Boarding facilities

• Kennels • Doggie day care

• Pet shows/sporting events • Groomers

Other facts • Unlike human flu, canine flu can strike all-year round • Dogs can spread canine flu before showing any symptoms • Can cause pneumonia, with the potential to be fatal

DON’T WAIT, VACCINATE WWW.DOGINFLUENZA.COM ASK YOUR VET TODAY! *Canine flu is not infectious to humans.

Copyright © 2016 Intervet Inc., d/b/a Merck Animal Health, a subsidiary of Merck & Co., Inc. All rights reserved. US/NCI/0216/0008 PET BOARDING & DAYCARE

23

Create a unique model of daycare that

allows you to better market your

•

value to

the community (and charge more!)

Provide more rest breaks for the dogs which allows them to get the quality rest they need to be emotionally healthy.

•

Offer individual activities/play sessions based on the dog’s needs and desires.

•

Create a unique model of daycare that allows you to better market your value to the community (and charge more!)

•

Set up a membership based program where people pay to access the services you have to offer.

These changes can actually work to your advantage. With a change in your program you should make a correspond-

24/7 Health Visibility • Great for Evenings, Weekends • You Receive Immediate Alerts • Generate Reports & Share with Customers PetPace.com/Boarding

ing increase in the prices you charge.

Offering a high–touch enrichment program provides a much higher value to your clients. You can increase your revenue while working with fewer dogs!

The dogs will have more fun and you'll set yourself apart as a new and unique dog daycare that is more profitable and different than the day–long daycare that has become the norm in our industry. n Robin Bennett is a Certified Professional Dog Trainer, author, consultant and expert on dogs. The tools she teaches facility staff and dog owners stem from over 20 years of involvement in the pet care industry.

Together with Susan Briggs, Robin has created an interactive staff training program called Knowing Dogs: a two-part training resource designed for pet care center management to train any staff member working in a pet care facility on safe dog interactions and group play. You can find more about Robin and these resources at www.robinkbennett.com. As “The Dog Gurus”, Robin and Susan’s mission is to improve safety in the dog daycare industry.

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PET BOARDING & DAYCARE

Check out their membership site at www.

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PROFILE OF SUCCESS

PET RESORT

THE ULTIMATE DESTINATION for PAMPERED

By Kathy Hosler Photos Courtesy of Pet Lodge Pet Resort

A

"'

re you the one that has the swimming pool for dogs?'

That's what a lot of people asked when they called Pet Lodge Pet Resort," recalls office manager, Megan Kirven. When the Pet Lodge first opened, their bone-shaped swimming pool was the talk of the town. And, the resort has never stopped planning and creating new and fun activities for their guests, all the while keeping the safety of the pets uppermost.

Pet Lodge Pet Resort has been family owned and operated since 1978.

The owner is Iris Morrison. She has been running Pet Lodge alone since her husband Ken Miller passed away in 2012.

It is located on thirteen beautifully landscaped acres in Alpharetta, Georgia.

As people pull up to the property, they see their huge outdoor play yards and beautiful pavilions. And when they

26

PETS

PET BOARDING & DAYCARE

enter the lobby and reception area, they are welcomed into a world that gives pets the vacation of a lifetime!

"When people walk into Pet Lodge Pet Resort, we want them to say Wow!" says Jeff Hoehn, the general manager and director of training. "We want to always be a step ahead and offer new and unique services to our guests.

"We were one of the first in our area to offer all indoor, climate controlled standard and luxury boarding, and special fun activities for our overnight and daycare guests. There is someone living on the property at all times. The resort has lots of room and we make use of all of it. Even our standard rooms are a spacious 5' X 10'."

The resort has 200 standard rooms, 47 luxury suites, and 6 presidential suites.

Every overnight guest gets to select a daytime activity to enjoy. They can choose

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The pet has their own personal staff member with them for the entire day. Whatever the dog wants to do...swim at the pool, go on a nature walk, have a relaxing massage, or play, they are accompanied by that staff person.

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PET BOARDING & DAYCARE

from a group swim, group or private playtime, agility, and more. They can even take a nature walk through the many trails throughout the beautiful wooded property where turkey, deer, rabbits, and other wildlife make their home.

Pet Lodge has special accommodations for their feline guests.

Cats have their own private area that overlooks the bone-shaped pool. They have multi–level kitty condos with lots of open space, comfy beds, and toys.

There is a giant playroom with ledges and climbing platforms, and windows with a great view. And they also offer a multitude of kitty playtime activities supervised by the resort staff.

They board exotics too. They have boarded everything from parrots to pot bellied pigs, turkeys to tarantulas, and snakes to skunks. They always have quite an assortment. It is not unusual for the resort to care for 400 over a holiday.

Pet Lodge has special programs and activities that cater to all their guests from playful pups to special needs seniors. They offer a geriatric and wellness program that gives undivided all–day attention to the guest. The pet has their own personal staff member with them for the entire day. Whatever the dog wants to do...swim at the pool, go on a nature walk, have a relaxing massage, or play, they are accompanied by that staff person. Throughout the day, pictures of the pet doing the fun activities are taken and a report card is emailed to the owner.

Pets who come for daycare get to enjoy the same resort activities as overnight guests. Pet Lodge has over 20,000 sq. ft. of indoor and outdoor play areas, filled with balls, toys, agility equipment, and more. They can also enjoy the nature trails, and swim in the bone–shaped pool. There is endless fun and activities for the dogs who attend all–day play. They are grouped according to size and activity level.

There is one handler for every ten dogs in daycare.

To further pamper the canine and feline guests at the resort, they have a grooming department that provides spa services and everything from relaxing bubble baths to complete makeovers.

And, any guest of the lodge can take advantage of their pet taxi service, that provides door–to–door pickup and delivery service.

The training programs at the resort offer many options. They have group beginner and advanced basic obedience, private lessons, agility lessons, a board and train program, day training, and even in–home training.

"When you sign up for our group obedience classes, you get a lifetime membership for that pet," says trainer, Jeff Hoehn. "If they ever need a refresher course, they can attend the classes again at no charge—even if it is years later.

"We always try to be on the cutting edge and really give each guest a real resort experience," states Jeff." Our website, www.petlodge.us provides lots of information about our facility and services. It used to be that people would call us and we would have to mail them a brochure. Now, they can get the information they need in seconds."

Pet Lodge is in the middle of a huge expansion. "We are constructing a splash pad water park. It's going to be a colossal aquatic center for dogs," Jeff shares. "There are several different areas for the dogs to play in, and it is great fun for any size dog. In one section the water is just six inches deep, and there are computer controlled jets that spray water for the dogs to chase and play in.

Other areas shoot water into the air and different configurations spray water from the edges into a gentle shower into the middle of the splash pad. There is a misting palm tree that provides shade for the staff and the dogs."

A future project is already in the planning stage. It will be a totally new concept in canine fun. The resort will be using landscape architecture to create new and completely unique play yards. Rolling hills will have tunnels built right into them, and areas for climbing will be incorporated into the interactive landscape.

The Pet Lodge Pet Resort has been a real industry leader in innovative entertainment for their guests. Maybe that's why everyone who visits it says "Wow! My pet gets to have more fun on his vacation than I do on mine!" n

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FACILITY

ON

C AU T I O N

N O I T U A C

N O I T U A C

C AU

STARTING A

NEW PROJECT: WHICH COMES FIRST, THE CHICKEN OR THE EGG?

By Al Locker

C AU T I O N

ON

C AU T I O N

C AU T I O N

So you’ve got that great idea, whether it’s a new facility from ground up or just a remodel of your existing place. Then you hit the “now what?” roadblock! How do you move forward? Even though it’s a great idea, you aren’t certain if you can afford it or if it will make economic sense.

I

f you go to a builder with your

has been in business very long, he has

never designed your type of project,

idea and try to get a price, the

already chased a few of those rabbits

you will be paying for them to learn

builder most likely has never

and has nothing to show for it except

about it, and the final result will be a

built anything like what you are asking

that he learned he should have used his

naïve one. An architect needs to fully

for and will need plans to bid by. If

time bidding on more viable projects.

understand the business he is designing

you haven’t spent any money getting at

So his enthusiasm may be less than

for, especially for this industry. If your

least some conceptual plans done, the

yours. An option would be to pay

project is a full–service pet resort like

builder may not be very receptive to

for the contractor’s time for bidding

my wife’s, you may have 4 different

spend any time giving a conceptual free

ballpark pricing. However, unless

businesses (boarding, grooming,

estimate for something that probably

you or he is knowledgeable of the pet

daycare, training ) under one roof, all

will never happen. If he does give you

industry, any questions he may have

with specific needs for staff, cleaning,

a bid, the eventual project cost will

won’t be answered, so the guestimate

building finishes, HVAC, etc.

be totally different after the plan is

will still be just that—a guestimate!

more developed and the permitting department changes it.

I can assure you that if the builder 30

Another approach is that you hire

In addition to the architectural plans, some mechanical, electrical,

an architect and let your imagination

plumbing, and structural engineering is

and theirs run wild. If they have

usually needed also. At this point you’ve

PET BOARDING & DAYCARE

CA

UT

AU T I O N

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PROJECT COSTS INCLUDE: √ ARCHITECTURAL & ENGINEERING FEES √ PERMITS & IMPACT FEES

spent thousands of dollars for bid-ready

as your project scope requires. You

plans, you’ve found three qualified

should do as much research as possible

contractors to bid the project, and now

to observe many different pet care

you send them out for bid. As the bids

facilities. Then you should move to the

come in, you realize that the cost for

proposed business plan. Although not

the project is much more than it will

formal at this point, it should have some

cash-flow, more than the bank will loan,

demographic study to make sure:

or more than you have the equity for.

√ TESTING

1.

So it’s back to the architect to pay him

√ CONSULTING √ BANKING FEES & INTERIM INTEREST √ LAND & CLOSING COSTS √ ATTORNEYS √ BUILDING & SITE DEVELOPMENT √ FURNITURE & FIXTURES √ EQUIPMENT √ PRE-OPENING EMPLOYMENT COSTS √ PRE-OPENING ADVERTISING √ CONTINGENCY √ WORKING CAPITAL

That there is a market available and it’s not overserved,

more money to redo the plans to get

2.

Which services you’ll provide,

you in budget if that’s even a possibility.

3.

That you are properly priced

If the architect has no industry–specific

for those services in your

knowledge he won’t understand where

market, and

you can “value engineer” (cut the budget) and where you can’t.

The correct path from idea to

4.

That the amount of net money it will produce is enough to service the lender’s note, and/

completion is a process. The final

or provide ROI you are looking

feasible project may be very different

for (based on your profit

from your original idea. Many times

centers and the quantity of

people don’t want to go through a process, they just want to do it now.

services you’ll provide).

That bit of knowledge determines the

Ultimately the process usually wins

total project cost that your idea can sup-

out, so it’s best and more economical to

port. For example: Using an amortization

plan the process and not just stumble

table, if there is $10,000 per month net

through it.

after all expenses to pay for the mortgage,

The process started with a great

and you can obtain a 20-year mortgage

idea. From there, you need a team of

at 5.5% interest, the amount of the loan

consultants: lawyer, civil engineer,

would be $1,454,000. That also means, de-

architect, builder, CPA, banker, etc.

pending on the bank’s equity requirement, in addition to the loan, you will have contributed $363,500 based on a 20% eq-

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uity requirement. So the total project cost maximum would be $2,181,000.

Notice I wrote total project cost above. That is because there is

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more than the land and building included in total project costs. In your business plan you need to plan for the entire total project costs, which will include architectural and engineering fees, permits and impact fees, testing, consulting, banking fees and interim interest, land and closing costs, attorneys, building and site development, furniture and fixtures,

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PET BOARDING & DAYCARE

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DETERMINE YOUR FACILITY NEEDS The size of the facility is determined by the profit centers and the capacity of each.

{

DOGS PER DAY

total project cost is the construction cost of the building and site; therefore you need a good idea of what that will by the profit centers and the capacity

2,750 SQUARE FEET

X 2,750 = $618,750

(PER SQUARE FOOT)

However, a big line–item in the

be. The size of the facility is determined

OF DAYCARE SPACE

$225

contingency, and working capital.

(SQUARE FEET)

of each. For example, if you want to have 50 dogs per day in indoor daycare and they stay on the floor all day, using the Dog Guru’s guidelines formula, we will need approx. 2,750 sf of daycare space. You will need to do the same type area calculations for the rest of the profit centers, using your envisioned form of those. Then if we subtract all of the other above estimated project costs, except for the building and site development, we’ll see how much is left for that portion.

Recent construction costs for a from-ground-up project in the Houston area have run $225/sf. The Design and Construction Resource Square Foot Cost Book—2016 Edition—has similar

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pricing also. What you may find at this point is that you need to change your original idea by reducing the project size, finding a less expensive piece of property, changing the quantity

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of each service provided, or better allocating facility square footage to the most profitable profit centers.

To get to this point you may have engaged various consultants, such as an architect, engineer, contractor, industry consultant, business consultants, etc.

This can be upsetting to some first–time prospective business owners who have spent time and money only to find the project isn’t feasible. However, remember that this is much less expensive than a failed project.

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type construction projects at that

PET BOARDING & DAYCARE

Once all of your projections are acceptable, then your project has a good foundation to move forward. You have

done your best to continue forward

and engineers to start the plans

Turnkey, Inc., celebrating over 55 years

with the least amount of wasted time

and specifications with a strong

in operation, is a commercial design

and money. Before the purchase or lease

understanding that the project design,

and design/build construction firm

of the property, the attorney needs to

and therefore construction cost, has

specializing in special-use businesses

verify that the site has an acceptable

to be in your budget. Most architects

such as pet resorts and veterinary clinics.

zoning use. If it’s a new from–ground–

do their work in phases and will

Turnkey’s design work starts with a

up project, the civil engineer needs to

recheck the project cost as the plans are

full understanding of a project and the

do some preliminary investigation to

developed, using their experiences and

owner’s business–plan needs. Turnkey’s

determine any site development special

a local builder’s input.

president, Al Locker, has designed over 65

issues, like storm–water detention,

If you were reading along waiting

pet facilities around the U.S, and built 16

parking, utilities, landscaping and

for the easy answer, you can see there

in the Houston, Texas area. He has also

easements, which could drastically

is none. Remember, it’s a process and

consulted and helped with the feasibility

affect the construction costs.

is changed as the project develops. The

and business plans for many more. Al

process timing as discussed is not set in

and his wife, Suzanne, have co–owned

project, now is the time to obtain a

stone; however, it does have a certain

ABC Pet Resort & Spa in Houston since

preliminary commitment from the

sequence. In recap, plan your process,

1991, which has given him personal

bank. The bank may need an estimated

be patient, be detailed and methodical,

insight into the specific needs and costs

construction cost for that. You may

rely on your consultant team for areas

of operating a pet facility. They have

need a conceptual site plan and floor

you are not familiar with, and know that

both given numerous seminars for those

plan for the builder to give you a

there will be difficulties along the way.

interested in starting a pet care business or

preliminary bid for the bank. With

So, hang in there…a wise banker once

expanding their existing business.

a preliminary bank commitment in

told me “If it was easy, then everyone

hand it’s time to engage the architect

would do it!” n

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FACILITY

REASONS WHY YOU SHOULD

RENTING

AND BUY YOUR NEXT FACILITY

By George Harrop

Occupancy costs comprise a major line item for any business. And while location is important, the stability and long–term fit of your real estate is also critical.

T

rying to plan ahead for growth and future requirements, while preserving cash flow and affordability, can be a lot to balance.

Add to this the more unique facility needs required by pet boarding and daycare providers, and a typical lease becomes one big compromise.

It doesn’t have to be this way. More and more pet professionals are enjoying

36

the benefits of owning their own real estate. With interest rates at historical lows, and real estate prices still rebounding from the Great Recession in many markets, established, profitable companies have the opportunity to buy instead of lease. What follows is an overview of why you may want to become your own landlord, and a few things to help you determine if you are

PET BOARDING & DAYCARE

a good candidate for ownership.

AVAILABILITY OF HIGH LEVERAGE, LONG TERM, STABLE FINANCING This is a great time to borrow money! Interest rates are at historical lows. Government–guaranteed programs such as the SBA 7(a) and

5

2

5

SBA 504 provide 20 and 25 year fully amortizing commercial loans that look and feel much more like a traditional residential real estate loan. In some cases, these loans can provide 90% and even 100% financing for the real estate and project costs, and the mortgage payment can be the same or lower than paying rent.

The costs of equipment and construction and/or build out can usually be rolled into the primary loan, replacing more costly specialty equipment financing. The result is more cash flow freed up for the business which can now be used for marketing, hiring, or expansion.

In many situations, the seller of the property will provide what’s called a Seller Note, which can be counted towards the equity injection of the borrower. This structure can help further reduce the initial out of pocket

costs of buying property.

CONTROL YOUR DESTINY AND ENJOY FLEXIBILITY TO MAXIMIZE USE OF SPACE When you own your property, you can build and/or configure your facility just as you want it. As you anticipate future growth, you can purchase more space than you need today and sublease that space to other businesses that have synergy with your own; for instance, a grooming or veterinary practice. This will provide you with additional income to pay for the facility today, and provide room to expand when you need it. It might even bring in more business!

Owning your building gives you the security of knowing that you’re not going to be subject to a lease termination, rent escalation, property sale, poor maintenance, or other whims of the

Landlord. Since your mortgage is stable, you can budget more accurately and better control expenses year over year.

It’s one less thing to worry about.

TAX BENEFITS OF OWNERSHIP CAN MAKE IT MORE ATTRACTIVE THAN RENTING The ability to deduct interest expenses, taxes, and depreciation of property and equipment can provide significant reductions in the taxes paid by your business at the end of the year.

These savings are not available to renters.

In cases where the monthly costs of ownership are higher initially, there is often a recapture at tax time that can be equal to—or even larger than—the total cost of renting. Be sure to check with your tax advisor for specific aspects of your situation and state and local tax laws.

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44

When it comes time to retire,

you can sell your business, but

retain the real

estate and collect estate

rent from the new owner. In this

4 4

way, owning real estate provides independent

business owners

with an attractive with retirement vehicle.

BUILD ASSET VALUE & INCOME STREAM FOR RETIREMENT BY INVESTING IN YOURSELF Instead of paying rent to a landlord, you are essentially paying rent to yourself. Over the years, you will build up equity in the property as you pay down your loan. You will also benefit from any appreciation of your building.

When it comes time to retire, you can sell your business, but retain the real estate and collect rent from the new owner. In this way, owning real estate provides independent business owners with an attractive retirement vehicle.

REFINANCE OTHER DEBT AS PART OF THE ACQUISITION OF REAL ESTATE Most businesses that qualify for buying instead of renting have been operating for some time, and have

likely accumulated various loans as they have grown and become established.

An added benefit of acquiring real estate comes from the opportunity to refinance these smaller loans that are typically at a higher interest rate, and on shorter amortization schedules into the long term loan used to buy the real estate. By doing this, a business can consolidate debt, lower monthly payments, and simplify accounting.

Before beginning a property search and approaching a bank about getting a loan, you should do some homework and get prepared. This includes making a realistic assessment of your suitability to buy real estate.

Buying a building is not a strategy for every business. Companies move through different stages, and a young, new company experiencing rapid growth may not have the available cash to cover the cost of ownership. Banks want to

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Standard. Run of the Mill. Same as the guy down the street.

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39

see stable and growing revenues when they make loans. Until your business has three years of financial results demonstrating the ability to handle the costs of a loan and real estate ownership, it doesn’t make sense to buy.

Prepare early for buying property.

Make sure your finances are in order.

Pay your bills and your taxes timely.

Your personal credit score and your company’s record with vendors will also be considered in your loan application.

Work with your CPA to prepare end of year statements that show your business has the ability to repay debt, and that you as the owner/manager have the ability to run your business and manage it successfully. Your company’s ownership structure should be clean, logical, and well–documented.

Have a financial plan of what you intend to do when you buy the property, and prepare a 12 to 24 month financial budget to show that you understand what

40

you are getting into, and how it is going to help your business grow and thrive.

Develop a team to help you explore the real estate market and different lending programs. A real estate agent and a banker will be critical in advising you on what you can afford, where to look, and how to structure your search—and ultimately your offer and loan package.

Certain areas of the country are experiencing rapid real estate appreciation. Which is great if you bought property five years ago, but challenging if you are in the market now. Fortunately, pet boarding and daycare businesses are well suited for properties that may be less affected by an overheated real estate market. Converting a warehouse space or repurposing an industrial property might work for pet boarding in a way it would not for other businesses. This can play to your advantage in finding the right property and location.

Every business is different, every

PET BOARDING & DAYCARE

real estate market is different, and state and local zoning and tax laws are different. Make sure you understand the implications of each of these as you look at the benefits and suitability of owning instead of renting your facility. With the right approach, you will find the benefits of ownership to be significant. n George Harrop is the managing director of CapitalSource Small Business Lending.

CapitalSource, a division of Pacific Western Bank, has originated over $3 billion of small business loans. Lending capabilities include: 1) loans ranging in size from $250K to $15 million, 2) SBA 7(a), 504 and conventional loans anywhere in the U.S; 3)higher LTV than traditional loan products; and 4) lending to dozens of industries, including franchises, physicians, veterinarians, pet boarding and grooming facilities, professional offices, insurance agencies, and many more. We are a designated SBA preferred lender. gharrop@capitalsource.com capitalsource.com

PET BOARDING & DAYCARE

41

HEALTH

CANINE

INFLUENZA

H3N2 WHAT WE'VE LEARNED

By Jill Lopez, DVM, MBA

T

he H3N2 canine influenza virus is of avian origin and was first isolated from sick dogs in China in 2006 and South Korea in 2007.(1) The first reported incidence of Canine Influenza H3N2 in the United States was documented in March 2015. Canine H3N2 influenza virus has been associated with severe respiratory signs and other clinical signs such as fever, reduced body weight, and interstitial pneumonia.(1)

PREVALENCE An H3N2 Task Force was created to help track the disease spread. The first cases of Canine Influenza H3N2 in North America were identified by IDEXX from two samples that were tested on March 4, 2015.(2) One of the dogs was from Chicago, Illinois and the other was from Grand Rapids, Michigan. As of July 11, 2016, H3N2 has been diagnosed in 30 states. (3)

CLINICAL SIGNS According to an informal survey conducted by Merck Animal Health, of 81 H3N2 confirmed infected dogs from the initial Chicago outbreak, the incidence of clinical signs was as follows: • 95% COUGHING • 70% LETHARGY • 63% INAPPETENCE • 58% FEVER • 49% NASAL OR OCULAR

1. Kang et al., H3N2 Canine Influenza Virus Causes Severe Morbidity in Dogs with Induction of Genes Related to Inflammation and Apoptosis, Veterinary Research 2013,44:92.

2. IDEXX: Important Diagnostic Update, Influenza A virus: the virus that reinvents itself, July 2015.

3. Canine Influenza Virus Surveillance Network—updated July 2016. https://ahdc.vet.cornell.edu/docs/CIV_Monitoring_2016-07-11.pdf 42

PET BOARDING & DAYCARE

DISCHARGE 27% GASTROINTESTINAL SIGNS • 20% PNEUMONIA The two most probable sources of infection, based on history and onset of clinical signs, were doggie day cares (42%) and boarding kennels (40%.)

Clinical signs of illness were noted within 24-72 hours within 46% of the dogs.(4) •

DIAGNOSIS Since many other infectious respiratory disease pathogens can cause similar clinical signs, this virus cannot be diagnosed by clinical signs alone.

The best approach to diagnose cases of Canine Influenza and other infectious respiratory diseases is through viral isolation, PCR and serology.

MANAGEMENT Since the initial outbreak, there have been many accounts of kennels, doggie day cares, and veterinary clinics becoming overwhelmed with cases of H3N2 in their facility. H3N2 is considered highly infectious and according to a study conducted by the University of Wisconsin, dogs have been shown to shed H3N2 virus for up to 24 days.(5) Sanitation and isolation procedures will help stop the spread but have no effect on the shedding.

Cats are also at risk for Canine Influenza H3N2. The University of

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4. CIV Patient Survey, Merck Animal Health, data on file.

5. Newbury S, et al: Prolonged intermittent virus shedding during an outbreak of canine influenza A H3N2 virus infection in dogs in three Chicago area shelters: 16 cases (March to May 2015), JAVMA, Vol 248, No 9, May 1, 2016.

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The University of Wisconsin recently discovered that several cats in an Indiana shelter with a H3N2 outbreak became ill with H3N2 despite being housed in separate areas than infected dogs.

Wisconsin recently discovered that several cats in an Indiana shelter with a H3N2 outbreak became ill with H3N2 despite being housed in separate areas than infected dogs.(6) Clinical signs of H3N2 seen in cats are similar to those seen in dogs.

PREVENTION Vaccination is key to helping prevent the spread of canine influenza. "Dogs at risk should be vaccinated at least yearly with both influenza strains, H3N8 and H3N2, in addition to the other causes of 'Canine Cough',” says Dr. Ronald Schultz, Professor of Pathobiological Sciences at the University Of Wisconsin School Of Veterinary Medicine and member of the 2016 Pet

How clean is your air?

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For more information, please visit: www.canineinfluenza.com n

Infectious airborne pathogens can remain in the air for days. And, in a high-traffic environment like yours, their presence is a constant reality. Obviously, no animal care facility can afford to close off a room, or worse – close their doors. It’s not only a risk to your revenue. Your reputation is at stake.

Dr. Jill Lopez is a veterinarian with Merck Animal Health. She started her career as a small animal practitioner in West Virginia and has worked in various

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NEW LAW IS A

VICTORY for

NEW JERSEY

PET FACILITIES

By Kathy Hosler

T

he state of New Jersey just passed a new law that affects almost everyone who provides pet boarding and daycare services.

It expands the choices of what pet care businesses in New Jersey can use as a surface for their outdoor pet containment areas.

"It was a hard uphill battle and took more than four years to get the law changed," says Steven Parker, co–founder and co–ceo of K–9 Resorts. "When you believe in something and you know it’s right, you need to persevere and not give up—even if you're fighting city hall (or worse—the state)."

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A determined Steven Parker launched a campaign to change the outdated law in New Jersey. He was extremely instrumental in preparing the bill and in getting it passed into a law. He explains how it happened.

"In 2012 we were going to open a new franchise location," says Steven.

"In doing research, we came across a New Jersey regulation that stated that any pet care facility that had an outdoor enclosure must have flooring that had an impervious surface—concrete or asphalt."

The old law did not allow outdoor containment surfaces to be grass, dirt, gravel, or artificial turf. This archaic law PET BOARDING & DAYCARE

was a real concern for modern pet care facilities that wanted to use surfaces like artificial turf. It is more likely that a pet can be hurt while playing on a hard surface like concrete or asphalt. Also, many dogs will not eliminate on these surfaces. And, they can become extremely hot and could lead to the injury of a pet.

Steven Parker contacted the state and explained why the regulation should be modified. But, the state refused to consider any modification. Mr. Parker reached out to industry experts; Veterinarians, other kennel owners, and engineers. They worked together and made a presentation to the state,

PET BOARDING & DAYCARE

47

Mr. Parker reached out to industry experts; Veterinarians, other kennel owners, and engineers. They worked together and made a presentation to the state, explaining in detail why the law needed changed. Still, the state would not budge on the wording of the law.

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PET BOARDING & DAYCARE

explaining in detail why the law needed changed. Still, the state would not budge on the wording of the law.

In early 2016, they contacted New Jersey state assemblyman, Jon Bramnick, and explained their dilemma. He agreed with their reasoning immediately and consented to sponsor a bill to change the outdated law.

The old regulation stated; 8:23A-1.5 Facilities (outdoor) (e) Surfaces of outdoor enclosures of pet shops, shelters, pounds, and boarding kennels shall be constructed and maintained so that they are impervious to moisture and may be readily cleaned and disinfected; run o from outdoor enclosures shall be disposed of in accordance with N.J.A.C. 8:23-1.4(g) The wording in the new proposal now allows facilities to use artificial turf in their outdoor enclosures.

Steven Parker wrote the bill. It was sponsored by assemblymen Jon Bramnick and backed by many of his fellow assemblymen. It went into committee and passed. From there it went to the Assembly and passed unanimously. Then it went on to the Senate where it also passed unanimously. Very few laws have ever passed with 100 bi-partisan percent votes. Finally, it went to the desk of Governor, Chris Christie, and was signed into law.

"This is huge for our industry on so many levels," shares Steven Parker. "It's a victory for four-legged and two-legged residents of New Jersey." n

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