Looking for a dog obedience school business plan? You're in the right place.
A training school lives or dies on how full its classes are. Before a lender or a landlord says yes, you need answers to a few questions. How many dogs must enroll each month to pay the rent? Which services carry the profit? What happens when a quiet winter leaves half the evening slots empty, or a zoning answer arrives late? A blank template won't show you what a believable answer looks like.
This article walks through a complete sample plan for a dog training school in Eugene, Oregon, section by section. It ends with the financials: funding, five years of profit, cash and balance sheet, a slow-sales year and the questions a lender would still ask.
Here's what you'll be able to do after reading:
- The school at a glance: put the whole business on one page, so a reader knows what is being asked and why
- Eugene's dog owners and their alternatives: show where a specialist school fits among pet-store classes, shelter courses and solo trainers
- Spending to fill the floor: tie a marketing budget to the number of dogs it has to bring in, and check it against the room's weekly slots
- Trainers and handlers: time each hire to the work that pays for it, so payroll doesn't arrive before the revenue
- The year of opening, month by month: see which months lose money before you reach them, and size the cash reserve around them
- The slow-sales year: answer the lender who asks what happens if sales run a fifth short, and show the steps you would take
The school is fictional. Use what fits your own plan and change the rest.
In this plan
Looking for a dog obedience school business plan template? The Toolkit builds yours with your own numbers.
The School at a Glance
Grove Green is a dog training school that opens in January 2027 in a leased 2,400-square-foot unit on the west side of Eugene, Oregon. It sells three things: six-week group class series, private lessons, and two-week board-and-train programs. Founder Tess Aldana owns 100% of the company. The method is owner-led: the dog learns in the room, and the owner is coached to repeat the work at home.
The school raises $170,000: $80,000 of Tess's savings, a $50,000 SBA microloan and a $40,000 loan from her brother. Of that, $66,000 builds the training floor, four suites, a wash station and the training gear, $24,000 covers permits, legal work, the launch and the rent paid during the build-out, and $80,000 stays in the bank.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $188,490 | $341,300 | $413,000 |
| Net income after start-up costs | ($61,501) | $27,291 | $20,922 |
| Closing cash | $48,717 | $69,539 | $84,240 |
Year 1 sells 384 class enrollments and 504 private sessions, and books 16 board-and-train programs from June. On the model's even spread of annual costs, the school loses money until August and ends the year with $48,717 in cash. Year 2 is the first profitable year, and profit stays positive through Year 5. The margins are thin: net income is 5.1% of revenue in Year 3, so the financial section carries a table of single-change cases and a lender question list as well as a slow-sales year.
In that slow-sales year revenue is 20% lower. Hires are delayed or dropped, marketing and Tess's pay are cut from July 2027, and no distributions are paid. The school stays cash-positive in every year, but its debt cover falls below a likely 1.25x lender test in Year 3, as it does in Year 1 in every case.
Grove Green and Its Classroom
Legal name: Grove Green, LLC, an Oregon limited liability company. Owner: Tess Aldana, 100%. Premises: 2,400 square feet in a light-industrial unit in west Eugene, with a 1,500-square-foot training floor, four board-and-train suites, a retail counter and an office. Opening date: January 2027, after a build-out in November and December 2026. Class registration opens in November.
What the school is for
Grove Green coaches owners to train their own dogs. Each series ends with a graduation night, and the school keeps the next course visible on the way out.
The revenue lines
| Program | How it sells | Share of Year 1 revenue |
|---|---|---|
| Six-week class series (puppy, manners, next level, reactive dog) | About $255 per dog, paid at booking | 52% |
| Private lessons and behavior consults | About $96 a session | 26% |
| Two-week board-and-train, from June | $2,150 per program | 18% |
| Workshops, practice sessions and retail counter | Small tickets | 4% |
Where the school is regulated
The Bureau of Labor Statistics reports no license requirement for dog training itself. It calls certification optional but useful for establishing credentials, and says many states require self-employed animal workers to hold a business license. Oregon has no general business license, according to the Secretary of State, though cities and counties may require their own. The budget therefore holds $3,500 for zoning and change-of-use review, building permits and a kennel-license check, and a City of Eugene license, if one applies, is an item to confirm.
Boarding is the open question. Lane County Animal Services states that its kennel licenses are available only to dog owners who live outside city limits and urban growth boundaries, so a unit inside Eugene would be answered by the city and its zoning code, which this plan has not confirmed. Zoning for animal use, including overnight stays, is confirmed in writing before the lease is signed. If the answer is no, the $17,000 for suites and the $8,000 wash station are not spent and board-and-train does not open; a drop-off day-training program could replace it, but no day-training revenue is modeled.
Eugene's Dog Owners and Their Alternatives
How many households there are to serve
The American Pet Products Association reports that about 95 million U.S. households own a pet, from its 2025 National Pet Owners Survey. The association's public page gives no dog-only count. Grove Green's market is smaller and local: owners within about twenty minutes of west Eugene who are bringing home a new puppy, adopting an adult dog, or living with a behavior that has started to cause trouble.
What a trainer earns
The Bureau of Labor Statistics put the median pay of animal trainers at $39,990 a year in May 2025 and projects 4% employment growth for the occupation from 2025 to 2035. Tess's $58,000 salary is above that median because she is also the owner, runs the sales and carries the head trainer's hours. The associate trainer's $52,000 is also above it, as the pay for a certified full-time trainer who runs private lessons and board-and-train.
Who a dog owner could hire instead
| Alternative | What it offers | Why an owner picks it | How Grove Green differs by design |
|---|---|---|---|
| Group classes at national pet-store chains | Set curriculum, many locations | Convenient, brand known | Smaller classes in a dedicated room, with the same trainer for all six weeks |
| Shelter and humane society courses | Low-priced basic manners | Price, and loyalty to the shelter | Evening, Saturday and Sunday slots, plus follow-on private help |
| Veterinary clinic puppy classes | Early socialization | Trusted by the owner's vet | Continues past puppyhood into adult manners and reactive-dog work |
| Independent trainers | One-to-one coaching | Personal and flexible | A classroom, a second trainer and boarding for dogs that need a fast start |
| Online courses | Self-paced video | Lowest price | In-person feedback on the dog actually in front of the trainer |
Offerings vary by provider. The table describes what each category typically offers and where Grove Green sits among them. It is not a ranking. The only outside prices quoted are in the pricing section below, because prices change often and vary by provider.
Strengths and weak points
| Strengths | Weaknesses |
|---|---|
| A founder with nine years of teaching group classes | No brand of its own yet |
| A purpose-built floor and a dedicated room | A single location, and one head trainer until the associate starts in month 20 |
| Three programs that lead naturally from one to the next | Weekday daytime classes fill slowly, and boarding waits on a zoning answer |
| Opportunities | Threats |
|---|---|
| Rescue adoptions and new puppy owners as repeat buyers | Pet-store chains and free shelter courses setting price expectations |
| Referrals from veterinary clinics and groomers | A trainer leaving with the clients they know |
| Board-and-train for owners who want a fast result | A dog injury in class or in a suite |
Who Signs Up and Why
The new-puppy household
An adult or couple with a puppy between eight and twenty weeks old, often a first dog. They enroll in the puppy series, usually within a month of bringing the dog home, and many return for the next level.
The rescue adopter
A household that has adopted an adult dog from a shelter or rescue and is dealing with leash pulling, jumping or separation. They tend to start with a private consult, then join a class.
The dog with a problem
An owner whose dog reacts to other dogs on walks, guards food or will not settle. These owners book the reactive-dog series or a board-and-train program, and are the least price-sensitive group.
What they want from the school
A trainer they trust with the dog, a plan they can follow at home, class times that fit around work, and a clear price before they book.
From Puppy Night to Graduation
The path to a booking
Free puppy nights in the first quarter bring people into the room. Every visitor meets Tess, sees the floor and leaves with a printed class schedule. Enrollment is online, paid in full at booking, with a refund window of seven days before the first class.
How classes are sold
Year 1 sells 384 enrollments, which means about 300 dogs, because some dogs take a second series. At seven dogs a class, that is about 55 classes of six sessions each.
| Source of new clients | New clients in Year 1 | Share |
|---|---|---|
| Google search and map listing | 90 | 25% |
| Vet, rescue and breeder referrals | 110 | 31% |
| Social media | 60 | 17% |
| Graduate referrals and email | 60 | 17% |
| Community events | 40 | 11% |
From class to private lessons to boarding
About 90 of the 150 dogs that take private lessons in Year 1 are class graduates. Board-and-train is offered only to dogs that have attended a class or had a consult, so that Tess knows the dog and the owner before a two-week stay.
Pricing
A six-week series sells at $240 for puppy and manners courses, $265 for the next level and $290 for reactive-dog work, an average of $255. For scale, the Oregon Humane Society's website lists its Portland puppy classes at $220 for six weeks and its five-week basic classes at $185, so the $240 puppy series sits about 9% above the first. Private sessions are $96 on average. A board-and-train program is $2,150, with a deposit at booking: about $770 for 14 nights of boarding at $55 a night and about $1,400 for 20 hours of training at $70 an hour, both planning figures. Prices rise about 2% to 3% a year from Year 2.
Keeping graduates
Each graduate leaves with a written plan and an invitation to a monthly practice session. Graduates who return for a second series account for about 84 of the 384 Year 1 enrollments.
Spending to Fill the Floor
Year 1 marketing is $18,500: $8,000 of launch costs paid from start-up funds plus $10,500 of operating spend. That is 9.8% of Year 1 revenue, falling to 3.0% of revenue in Year 3 and 2.6% in Year 5 as graduates start to refer. Spread across about 360 new clients, it costs about $51 per client.
| Channel | Year 1 spend | What it is expected to do |
|---|---|---|
| Website, signage and photography (launch) | $6,000 | A class calendar with online booking, and signage that is readable from the road |
| Free puppy nights (launch) | $2,000 | Four evenings in the first quarter that bring in the first enrollments |
| Google search ads | $3,600 | Searches such as "puppy class Eugene"; about 90 clients |
| Referral program with vets, rescues and breeders | $2,700 | A printed puppy packet and a short guide to the school; about 110 clients |
| Social media | $2,400 | Short training videos and class photos; about 60 clients |
| Community events | $1,000 | A table at pet and adoption events; about 40 clients |
| Graduate referral credits and email | $800 | A credit for each referral that books a series; about 60 clients |
Marketing milestones
- November 2026: class registration opens.
- March 2027: 26 enrollments in the month, and the first referral from a veterinary clinic.
- June 2027: first board-and-train dogs arrive.
- October 2027: the busiest month, with 44 enrollments.
A Week on the Training Floor
The unit
2,400 square feet at $14 a square foot a year, $33,600 in Year 1, on a five-year lease with a five-year renewal option and a personal guarantee. The $14 is an all-in planning figure for rent plus building charges. The $66,000 build-out works out to $27.50 a square foot, is also a planning figure, and is replaced by a contractor's bids before the lease is signed; no landlord allowance is counted. The floor has rubber surfacing, sound panels and a double-door entry so that dogs never meet at the entrance. The four suites are separated from the classroom by a solid wall and have sealed floors, and a wash station with floor drains and added ventilation serves them.
Class slots and capacity
The floor offers 20 weekly class slots: three each weekday evening from Monday to Thursday, four on Saturday, two on Sunday afternoon and two weekday mornings. Year 1's busiest month, October, needs about 8.7 of them. Applying Year 1's seasonal shape to later years, October needs 14.5 in Year 2, 16.5 in Year 3, 17.9 in Year 4 and 18.8 in Year 5. Autumn is the season in which a class would be turned away, and room for growth beyond Year 5 means more slots or more space.
Trainer hours
A week's work counts 1.25 hours for each hour of class or private lesson (set-up and notes), 20 hours of training for each board-and-train program, and 10.5 hours of care a week for each occupied suite, counting the two turnaround days (16 suite-days, 24 hours a program). Staffed hours per week are 35 for Tess, 32 for each full-time employee, 18 for the part-time instructor and 14 for the weekend helper. These are productive hours, below paid hours, and the front desk role books and answers phones and is not counted. October is the test month, at 1.375 times an average month for classes (44 enrollments against Year 1's average of 32), 1.38 for lessons (58 sessions against 42) and 1.5 for programs, a planning figure.
| October of | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Hours of work a week | 58 | 90 | 110 | 124 | 134 |
| Staffed hours a week | 85 | 117 | 117 | 131 | 131 |
| Class slots needed, of 20 | 8.7 | 14.5 | 16.5 | 17.9 | 18.8 |
| Suites occupied, of 4 | 1.6 | 2.4 | 3.1 | 3.6 | 4.0 |
Year 1 has no thin month. Tess alone covers January's 8 hours of weekly work, the instructor starts in February, and the load first passes Tess's 35 hours in July, with the assistant starting in August. The early months are lightly used, and that idle cover is part of the Year 1 loss. Without the associate trainer, October of Year 2 would need 90 hours against 85, which sets month 20 for that hire. In Years 3 and 4 the autumn runs at 94% and 95% of staffed hours. Year 5's October needs about 134 against 131, so the owner and assistant cover the gap with long weeks, and the next step is another hire.
Board-and-train routine
Each dog has its own suite, three outdoor breaks, two training blocks a day and a daily message to the owner. Four suites can hold about 91 programs a year allowing a two-day turnaround. Year 5 books 60, which is two-thirds of that on average, and its busiest month fills all four suites. Nobody sleeps on site: a staff member checks the suites at about 9:30 pm and 6:30 am, and cameras are watched from a phone. Whether the insurer or the city requires overnight staffing is unconfirmed.
Safety and insurance
Insurance is budgeted at $6,500 in Year 1: general liability, animal care custody and control, professional liability, and property and business-interruption cover. Workers' compensation sits in the payroll on-costs. The school requires proof of vaccination from every dog and signs a waiver and a boarding agreement with every owner. The figure is a planning number, and a broker's written quote replaces it before the lease is signed.
Software and records
Online booking and payment, a client record that stores vaccination dates and behavior notes, and email reminders. Software costs $3,600 in Year 1 and $5,300 by Year 5.
Tess and the Trainers
Tess Aldana, owner and head trainer
Tess spent nine years teaching group classes for a regional pet retailer and volunteering as a behavior coach at an Oregon rescue. She holds a professional trainer certification. Her $80,000 equity contribution comes from savings, and a lender would ask for the statements behind it.
Where the team is thin
Tess has not run a boarding operation, has not hired and managed staff, and has never owned a lease. These gaps are covered by waiting to open board-and-train until month 6, by placing a part-time instructor in month 2 so Tess is not alone on evenings, and by having a lawyer review the lease and the boarding agreement.
Succession and cover
Tess is the only person who can run private lessons and board-and-train at launch. The associate trainer in month 20 is certified, so that the school can keep both programs running if she is out. Until then, a trainer from a nearby school is on an informal arrangement to cover emergencies.
Outside help
A retired small-business banker from the microloan intermediary's mentor network reviews the numbers each quarter. A veterinarian near the school reviews the vaccination policy and the first-aid plan.
Ownership and the lenders
Tess owns 100% of Grove Green, LLC. The microloan intermediary sets its own terms; a personal guarantee and a lien on the equipment are likely. Her brother's loan is unsecured, with a written agreement.
The Numbers Behind the Classroom
Every table below comes from one five-year model. Year 1 is month by month and Years 2 to 5 are annual, with each year's costs spread evenly across its months. Funding comes first, then the planning figures behind the revenue and cost lines.
Build-out and funding
| Use of funds | Amount |
|---|---|
| Training floor: rubber surfacing, fencing, sound panels, lighting, double-door entry | $32,000 |
| Four board-and-train suites | $17,000 |
| Wash station, floor drains and added ventilation | $8,000 |
| Training gear, mats, crates, platforms and a camera system | $9,000 |
| Zoning and change-of-use review, building permits and kennel-license check | $3,500 |
| Legal: entity, lease review, class waiver and boarding agreement | $4,500 |
| Launch: website, signage, photography, free puppy-night events | $8,000 |
| Rent, utilities and insurance for the two months before opening (November and December 2026) | $8,000 |
| Cash reserve for the first year | $80,000 |
| Total uses | $170,000 |
| Source of funds | Amount |
|---|---|
| Tess Aldana's savings | $80,000 |
| SBA microloan through a nonprofit intermediary | $50,000 |
| Family loan from her brother | $40,000 |
| Total sources | $170,000 |
Tess puts in $80,000 of her own savings, 47% of the $170,000 raised. An SBA microloan of $50,000 comes through a nonprofit intermediary and is repaid over six years at 9.5%, interest-only for the first six months. SBA lists microloan rates as generally 8% to 13% and leaves the terms to the intermediary, so 9.5% is a planning figure. Her brother lends $40,000 over five years at 5%, interest-only for the first twelve months, under a written agreement. The training floor, suites, wash station and gear take $66,000, or $27.50 a square foot, with no landlord allowance counted. Permits, legal work, launch marketing and the rent, utilities and insurance of the two months before opening, November and December 2026, take $24,000, and $80,000 stays in the bank. The model books the build-out and the loan draws in January 2027, although the work runs in November and December 2026. The reserve is sized against the opening rather than the base-case low. On the monthly view, which is approximate because it carries no receivables timing, month-end cash is lowest in August 2027, at about $38,000. If the school opens in March 2027 instead of January, with sales following the same curve from March and every cost and hire kept on its original date, Year 1 revenue falls by $40,100 and the lowest month-end balance drops to about $5,000, in October 2027. Year 1 then closes at $13,630 in the annual cash table. The reserve therefore carries a two-month slip with little to spare. A three-month slip would overdraw it by about $11,000, and a 15% build-out overrun ($9,900) on top of a two-month slip by about $5,000, so either would need rent abatement or more equity. The model carries no lease deposit, so no cash figure includes one. If the landlord asks for a deposit as well as Tess's personal guarantee, one month's rent is $2,800 and spendable cash falls by that amount.
Figures the model runs on
- A class series is six weekly one-hour sessions at a blended $255 a dog in Year 1: $240 for puppy and manners courses, $265 for the next level and $290 for the reactive-dog course. Year 1 sells 384 enrollments from about 300 dogs, since some dogs take a second series. Prices step about 2.5% a year, to $262 in Year 2 and $282 in Year 5, and enrollments reach 640, 730, 790 and 830 in Years 2 to 5.
- The room offers 20 weekly class slots: three each weekday evening from Monday to Thursday, four on Saturday, two on Sunday afternoon and two on weekday mornings. A class holds up to 8 dogs and averages 7. The model spreads Years 2 to 5 evenly across months, so the busiest month of each later year applies Year 1's shape, with October at 1.375 times an average month (44 enrollments against Year 1's average of 32 a month). On that basis October needs 8.7 slots in Year 1, then 14.5, 16.5, 17.9 and 18.8 in Years 2 to 5.
- Private lessons and first-visit behavior consults bill at a blended $96 a session in Year 1: 504 sessions across about 150 dogs, of which about 90 are class graduates. Sessions grow from 800 in Year 2 to 1,040 in Year 5, at $98 rising to $107.
- Board-and-train is a two-week program at $2,150 in Year 1, rising about $50 a year to $2,350 in Year 5. The price rests on planning figures of about $770 for 14 nights of boarding and about $1,400 for 20 hours of training. It is sold from June 2027, once the first class graduates exist, and books 16 programs in Year 1, then 36, 46, 54 and 60. Four suites with a two-day turnaround hold about 91 programs a year. Year 5's 60 use two-thirds of the suite-days on average, and its busiest month, at 1.5 times an average month, fills all four. A program takes about 20 hours of training and 24 hours of care, an hour and a half a day over 16 suite-days (14 nights and two turnaround days).
- Class and private fees are paid in full at booking and board-and-train takes a deposit at booking, so receivables average 3 days. Revenue is recorded when a series is sold. The model does not spread a six-week series over the weeks it runs, and the seven-day refund window appears only through a bad-debt allowance of $400 in Year 1 and $1,500 in Year 5.
- Direct costs are 7.8% of Year 1 revenue: card fees, boarding food and laundry on board-and-train, and the wholesale cost of retail stock, which carries a 42% cost of sales. The engine holds that Year 1 rate for every year, but board-and-train (12% direct cost) grows faster than classes (6%). A separate line adds the difference, $1,966 in Year 2 rising to $5,352 in Year 5, which lifts the Year 5 rate to 8.9%. Inventory is held at 1% of annual sales.
- Payroll on-costs are 30% on full-time wages and 18% on part-time wages, planning figures for payroll taxes, state unemployment tax, workers' compensation, which costs more for work with animals than for office work, and some benefits. A broker's written compensation quote and an accountant's view of the rest replace them. Oregon's standard minimum wage, which covers Lane County, is $15.55 an hour from July 1, 2026 to June 30, 2027. Every hourly wage here is above it: the assistant's $38,000 is $18.27 an hour on 2,080 hours, the associate's $52,000 is $25.00, and the part-time roles are paid for about 1,000 to 1,100 hours a year at $19 to $20. Everyone except Tess is paid by the hour, so overtime applies, and the model includes none. Annual pay raises of 3% are charged as a separate line from Year 2.
- Rent is $14 a square foot a year all-in on 2,400 square feet, $33,600 in Year 1, rising about 3% a year; the build-out months' rent sits in the start-up costs. Insurance is $6,500 in Year 1 and $8,400 in Year 5, and utilities $5,400 and $6,200, all planning figures for a unit with a wash station, dryers and climate control running all day.
- The fit-out and gear are written off over five years, the length of the lease, which is $13,200 of depreciation a year. A renewal option would let them run longer, and the model does not use it.
- Tax uses the 21% federal corporate rate (26 U.S.C. 11(b)) and Oregon's 6.6% rate on the first $1 million of taxable income, which combine to 26.2% because the state tax is deductible federally. The Year 1 loss carries forward. The tax base leaves out the $24,000 of start-up costs, which overstates tax, and ignores the 80% limit on using federal loss carryforwards, which understates it; an accountant would settle both. A small school might elect pass-through treatment, which moves the tax to the owner's return.
- The only owner distribution is $20,000 in Year 5. Cumulative net income is $7,580 at the end of Year 4 and $49,435 at the end of Year 5, so a Year 4 payout would have exceeded profit earned to date and none is paid. The loans run to term and are not repaid early.
- Years 2 to 5 are flat across months in the model, so the Year 2 winter dip is not shown. Year 1 closes with $48,717, which is the cushion for the second January.
Revenue by program
| Revenue stream | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Class series (six-week group courses) | $97,920 | $167,700 | $195,600 | $217,200 | $234,100 |
| Private lessons and behavior consults | $48,370 | $78,400 | $92,900 | $103,000 | $111,300 |
| Board-and-train programs | $34,400 | $79,200 | $103,500 | $124,200 | $141,000 |
| Workshops, practice sessions and retail counter | $7,800 | $16,000 | $21,000 | $24,000 | $26,500 |
| Total revenue | $188,490 | $341,300 | $413,000 | $468,400 | $512,900 |
| Growth on prior year | – | 81% | 21% | 13% | 10% |
Class series carry the school: 52% of Year 1 revenue and 46% of Year 5. Private lessons are the next-largest line at 26% and then 22%. Board-and-train grows fastest, from 18% of revenue in Year 1 to 27% in Year 5, because a graduate who has taken a class and a few private sessions is the likeliest buyer. Year 2 growth of 81% reflects a first year that starts at $5,110 in January and sells board-and-train for only seven months. It is also the step a lender will test first: Year 2 averages $28,442 a month, 18% above $24,090 in October, the best month of Year 1, and needs 640 class enrollments against 384.
Twelve months from opening
| Month | Class series (six-week group courses) | Private lessons and behavior consults | Board-and-train programs | Workshops, practice sessions and retail counter | Total revenue | EBITDA |
|---|---|---|---|---|---|---|
| Jan 2027 | $3,570 | $1,340 | $0 | $200 | $5,110 | ($11,238) |
| Feb 2027 | $5,100 | $2,300 | $0 | $350 | $7,750 | ($8,804) |
| Mar 2027 | $6,630 | $3,070 | $0 | $450 | $10,150 | ($6,592) |
| Apr 2027 | $8,160 | $3,650 | $0 | $550 | $12,360 | ($4,554) |
| May 2027 | $9,180 | $4,220 | $0 | $650 | $14,050 | ($2,996) |
| Jun 2027 | $9,180 | $4,610 | $2,150 | $700 | $16,640 | ($609) |
| Jul 2027 | $7,650 | $4,220 | $4,300 | $650 | $16,820 | ($443) |
| Aug 2027 | $8,670 | $4,610 | $4,300 | $700 | $18,280 | $903 |
| Sep 2027 | $10,710 | $5,180 | $6,450 | $800 | $23,140 | $5,383 |
| Oct 2027 | $11,220 | $5,570 | $6,450 | $850 | $24,090 | $6,259 |
| Nov 2027 | $10,200 | $5,180 | $6,450 | $900 | $22,730 | $5,005 |
| Dec 2027 | $7,650 | $4,420 | $4,300 | $1,000 | $17,370 | $64 |
January opens with $5,110 of sales. On the model's even spread of annual costs, EBITDA is negative from January to July and positive from August to December, though December clears zero by only $64. September ($23,140) and October ($24,090) are the strongest months, when owners of summer puppies and new rescue adoptions enroll before winter. Cash lows from this view are approximate because it has no receivables timing. Month-end cash is lowest in August 2027, at about $38,000.
Trainers and handlers
| Role | Annual wage | Starts | Year 1 end | Year 2 end | Year 3 end | Year 4 end | Year 5 end |
|---|---|---|---|---|---|---|---|
| Founder and head trainer | $58,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Class instructor (part time, evenings and Saturdays) | $22,000 | Month 2 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Training and kennel assistant | $38,000 | Month 8 | 1 | 1 | 1 | 1 | 1 |
| Associate trainer (certified) | $52,000 | Month 20 | – | 1 | 1 | 1 | 1 |
| Front desk and scheduling (part time) | $20,000 | Month 30 | – | – | 0.5 | 0.5 | 0.5 |
| Weekend kennel and class helper (part time) | $19,000 | Month 37 | – | – | – | 0.5 | 0.5 |
| Total payroll incl. on-costs | $119,780 | $178,927 | $232,127 | $264,380 | $264,380 |
Tess runs the first series alone in January. A part-time instructor starts in month 2 for evenings and Saturdays, and a full-time training and kennel assistant in month 8 (August 2027), as the first board-and-train dogs arrive. A certified associate trainer follows in month 20 (August 2028), a part-time front desk and scheduling role in month 30 (June 2029) and a part-time weekend kennel and class helper in month 37 (January 2030). The autumn hours table in the operating plan sets those dates: the associate is what covers October of Year 2 and the helper October of Year 4. Tess's $58,000 is paid from month 1, so the profit lines show what is left after she is paid.
Profit and loss by year
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $188,490 | $341,300 | $413,000 | $468,400 | $512,900 |
| Direct costs (card fees, kennel food, laundry, retail stock) | ($14,730) | ($26,672) | ($32,276) | ($36,605) | ($40,083) |
| Gross profit | $173,760 | $314,628 | $380,724 | $431,795 | $472,817 |
| Payroll incl. on-costs | ($119,780) | ($178,927) | ($232,127) | ($264,380) | ($264,380) |
| Rent | ($33,600) | ($34,600) | ($35,600) | ($36,700) | ($37,800) |
| Utilities | ($5,400) | ($5,600) | ($5,800) | ($6,000) | ($6,200) |
| Marketing | ($10,500) | ($12,000) | ($12,500) | ($13,000) | ($13,500) |
| Insurance | ($6,500) | ($7,000) | ($7,500) | ($8,000) | ($8,400) |
| Professional fees | ($3,000) | ($3,200) | ($3,400) | ($3,600) | ($3,800) |
| Software subscriptions | ($3,600) | ($4,200) | ($4,600) | ($5,000) | ($5,300) |
| Trainer certification, continuing education and dues | ($1,800) | ($2,400) | ($3,000) | ($3,200) | ($3,400) |
| Cleaning, laundry, waste and kennel supplies | ($2,600) | ($4,200) | ($5,000) | ($5,800) | ($6,300) |
| Training treats, toys and loaner equipment | ($2,400) | ($3,200) | ($3,800) | ($4,200) | ($4,500) |
| Phones, supplies and uniforms | ($1,800) | ($2,200) | ($2,500) | ($2,700) | ($2,900) |
| Equipment replacement | $0 | ($2,500) | ($3,500) | ($4,000) | ($4,500) |
| Bad debt allowance | ($400) | ($900) | ($1,200) | ($1,400) | ($1,500) |
| Direct costs from the later-year program mix, above the Year 1 blend | $0 | ($1,966) | ($3,487) | ($4,501) | ($5,352) |
| Annual pay raises (3% a year) | $0 | ($5,368) | ($14,137) | ($24,515) | ($33,182) |
| EBITDA | ($17,620) | $46,367 | $42,574 | $44,799 | $71,803 |
| Depreciation | ($13,200) | ($13,200) | ($13,200) | ($13,200) | ($13,200) |
| Interest | ($6,680) | ($5,876) | ($4,646) | ($3,317) | ($1,879) |
| Income tax | $0 | $0 | ($3,806) | ($7,414) | ($14,870) |
| Net income before start-up costs | ($37,501) | $27,291 | $20,922 | $20,868 | $41,855 |
| Start-up costs expensed at opening (legal, permits, launch marketing, build-out rent) | ($24,000) | $0 | $0 | $0 | $0 |
| Net income after start-up costs | ($61,501) | $27,291 | $20,922 | $20,868 | $41,855 |
Year 1 loses $37,501 before start-up costs and $61,501 after the $24,000 of start-up costs. Year 2 is the first profitable year, with EBITDA of $46,367, 13.6% of revenue. EBITDA slips to 10.3% in Year 3 and 9.6% in Year 4 because the associate trainer is on payroll for a full year, the front desk role starts in Year 3 and the helper in Year 4, and pay raises reach $14,137 in Year 3 and $24,515 in Year 4. It rises to 14.0% in Year 5 ($71,803) as those hires fill up. Net income is $27,291, $20,922, $20,868 and $41,855 in Years 2 to 5, 5.1% of revenue in Year 3 and 4.5% in Year 4. Depreciation is $13,200 a year. Income tax first appears in Year 3, once the Year 1 loss has been used.
Where the cash goes
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Cash from operations | ($51,735) | $37,707 | $32,816 | $33,059 | $54,244 |
| Equipment and build-out | ($66,000) | $0 | $0 | $0 | $0 |
| Funding received | $170,000 | $0 | $0 | $0 | $0 |
| Loan principal repaid | ($3,548) | ($16,885) | ($18,115) | ($19,444) | ($20,882) |
| Owner distributions | $0 | $0 | $0 | $0 | ($20,000) |
| Net change in cash | $48,717 | $20,822 | $14,701 | $13,615 | $13,362 |
| Closing cash | $48,717 | $69,539 | $84,240 | $97,855 | $111,217 |
Cash closes Year 1 at $48,717 after $66,000 for the build-out and $51,735 used by operations, and rises every year to $111,217 in Year 5. Principal is $3,548 in Year 1 and $16,885 in Year 2, rising to $20,882 in Year 5; $11,126 of loans remain at the end of Year 5, with the microloan running to December 2032. The only distribution is $20,000 in Year 5, below that year's net income of $41,855 and below the $33,362 of operating cash left after principal.
Balance sheet at year end
| At year end | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Cash | $48,717 | $69,539 | $84,240 | $97,855 | $111,217 |
| Accounts receivable | $1,549 | $2,805 | $3,395 | $3,850 | $4,216 |
| Inventory | $1,885 | $3,413 | $4,130 | $4,684 | $5,129 |
| Equipment and build-out (net) | $52,800 | $39,600 | $26,400 | $13,200 | $0 |
| Total assets | $104,951 | $115,357 | $118,165 | $119,589 | $120,561 |
| Loans (microloan and family loan) | $86,452 | $69,567 | $51,453 | $32,008 | $11,126 |
| Paid-in capital | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 |
| Retained earnings | ($61,501) | ($34,210) | ($13,288) | $7,580 | $29,435 |
| Total liabilities and equity | $104,951 | $115,357 | $118,165 | $119,589 | $120,561 |
Break-even and per-head figures
| Measure | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| EBITDA margin | -9.3% | 13.6% | 10.3% | 9.6% | 14.0% |
| Net margin (before start-up costs) | -19.9% | 8.0% | 5.1% | 4.5% | 8.2% |
| Payroll incl. pay raises as share of revenue | 64% | 54% | 60% | 62% | 58% |
| Revenue per full-time equivalent at year end | $75,396 | $97,514 | $103,250 | $104,089 | $113,978 |
| Average monthly revenue | $15,708 | $28,442 | $34,417 | $39,033 | $42,742 |
| Monthly revenue needed to cover operating costs | $17,300 | $24,250 | $30,568 | $34,984 | $36,251 |
| Debt service cover (EBITDA / interest + principal) | -1.7x | 2.0x | 1.9x | 2.0x | 3.2x |
Operating costs are covered when average monthly revenue exceeds the figure in the "needed" row. Year 1 averages $15,708 against $17,300 needed and falls short. Year 2 averages $28,442 against $24,250, 17% above, then Year 3 $34,417 against $30,568 (13%), Year 4 $39,033 against $34,984 (12%) and Year 5 $42,742 against $36,251 (18%). Debt service cover is negative in Year 1, 2.0x in Year 2, 1.9x in Year 3, 2.0x in Year 4 and 3.2x in Year 5. Gross profit here sits before any pay for trainers. Payroll including raises takes 64% of revenue in Year 1, 54% in Year 2, 60% in Year 3, 62% in Year 4 and 58% in Year 5, and a school whose product is trainer hours has little else to cut. Revenue per full-time equivalent at year end, with part-time roles at half, is $75,396 in Year 1 and $113,978 in Year 5.
If sales run 20% short
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $150,792 | $273,040 | $330,400 | $374,720 | $410,320 |
| Net income before start-up costs | ($50,233) | $13,363 | ($9,640) | $14,468 | $35,818 |
| Net income after start-up costs | ($74,233) | $13,363 | ($9,640) | $14,468 | $35,818 |
| Closing cash | $36,672 | $44,123 | $28,523 | $35,939 | $63,427 |
Every revenue line is cut by 20% in every year. The owner reacts after six months of trading, so the pay cut and the marketing cut start in month 7, July 2027. Tess takes 20% less from July and marketing falls 20% from July, which is 10% across Year 1 and 20% in Years 2 to 5. The training and kennel assistant starts in month 11 instead of month 8, the associate trainer starts six months late, in month 26, and the front desk and weekend helper roles are never filled. Bad debt, treats and toys, cleaning and laundry, and the direct-cost mix line fall 20% with sales. Rent and every other cost line stay as in the base case, and distributions are zero.
On those terms the school ends every year with cash in the bank, never below $28,523 (Year 3) and below the base case in every year. It loses $74,233 in Year 1 after start-up costs and $9,640 in Year 3, when the delayed associate is on payroll for eleven months, and equity ends Year 1 at $5,767. The lowest Year 1 month-end balance, measured as in the base case, is about $35,000 in August 2027. Debt service cover is negative in Year 1, then 1.4x, 0.4x, 1.4x and 2.3x in Years 2 to 5. Year 3 revenue is $82,600 below the base case but EBITDA only $34,368 lower, so about $42,000 of operating cost has to come out, and the recovery leans on those cuts.
Against a likely 1.25x test the case fails in Year 1, where EBITDA is negative in every case, and in Year 3, where EBITDA of $8,206 covers 0.4x of $22,761 of debt service and the $14,555 gap comes from cash. Stacking the March 2027 opening on this case takes the lowest Year 1 month-end to about $4,800 (October 2027), Year 1 equity to negative $22,887 and Year 3 closing cash to negative $131. The ask to the bank is a 1.25x test measured from Year 2, a waiver of the Year 3 test in a downside year while year-end cash stays above $25,000, no distributions while the waiver runs, and a $25,000 standby line against the stacked case.
Single-change cases
Each row changes one input of the base case and re-runs the whole model with no management response. Distributions are set to zero in every row. The direct-cost rate stays at the base case's 7.8% of Year 1 revenue in every row except the direct-cost row itself, including rows that change the mix. In the rows that change revenue, the bad-debt allowance, treats and toys, cleaning and laundry and the direct-cost mix line move with revenue. Net income is after start-up costs.
| Case | Year 1 net income | Year 2 net income | Year 3 net income | Year 3 debt cover | Lowest year-end cash |
|---|---|---|---|---|---|
| Base case | ($61,501) | $27,291 | $20,922 | 1.9x | $48,717 (Year 1) |
| Revenue 10% lower, every line and year | ($78,337) | ($3,145) | ($11,996) | 0.3x | ($15,657) (Year 4) |
| Direct costs 2 points higher | ($65,271) | $20,465 | $16,468 | 1.5x | $44,947 (Year 1) |
| Wages 10% higher, raises and on-costs following | ($73,479) | $8,861 | $102 | 0.8x | $25,151 (Year 4) |
| Rent 10% higher | ($64,861) | $23,831 | $20,083 | 1.7x | $45,357 (Year 1) |
| Insurance 50% higher | ($64,751) | $23,791 | $19,924 | 1.7x | $45,467 (Year 1) |
| Opening in March 2027, revenue only | ($97,318) | $27,291 | $24,728 | 1.9x | $13,630 (Year 1) |
| Classes average 6 dogs, not 7 | ($73,995) | $5,927 | ($119) | 0.8x | $23,384 (Year 4) |
| Board-and-train never opens, costs unchanged | ($92,226) | ($43,337) | ($67,304) | -2.2x | ($268,917) (Year 5) |
The March opening moves Year 1 sales to the same curve two months later, so Year 1 revenue is $148,390; Years 2 to 5 revenue and every cost and hire stay as in the base case. The larger Year 1 loss shelters tax in Year 3, which is why that year reads higher than the base case. The class-size row removes one seventh of class revenue in every year, and the board-and-train row removes the whole line while keeping the assistant, associate, helper and suites.
The base case is fragile. Operating profit is about 10% of revenue in Year 3, so a 10% fall in sales removes most of it, and a 10% rise in wages or a six-dog average class leaves Year 3 at about zero. Rent and insurance increases barely register. A 10% sales shortfall with no response turns cash negative in Year 4, which is why the downside above applies one.
What a lender would still ask
- The kennel and zoning answer in writing. Board-and-train is 18% of Year 1 revenue and 25% of Year 3. With it removed and every cost kept, the school loses money in every year and runs out of cash in Year 2. If the owner instead leaves out the assistant, the helper, the suites and the wash station, keeps the $25,000 saved in the bank, keeps the front desk role and moves the associate to month 37, then on the table's method Years 2 and 3 earn $41,557 and $45,901, and Year 4 falls to $1,095 when the associate arrives.
- The lease: a five-year term with a five-year renewal option against a six-year microloan, the personal guarantee, any deposit, the rent steps, and a permitted-use clause for overnight dogs.
- Contractor bids for the $66,000 build-out, which has no contingency line, and a permit timeline that holds a January 2027 opening. The reserve covers a two-month slip with about $5,000 spare.
- An insurer's quote for animal care, custody and control, and whether it requires overnight staffing.
- Evidence for the Year 2 step: pre-registrations, referral partners and the repeat rate behind the 84 second-series enrollments.
- The source of the $80,000 equity contribution, how Tess lives in November and December 2026 when no pay is budgeted before opening, and the family loan agreement, including whether the brother's loan stands behind the bank's.
- Cover for Tess, who runs private lessons and boarding alone until month 20.
- The debt-cover covenant: negative in Year 1 by design, 2.0x in Year 2 and 1.9x in Year 3, against 0.4x in Year 3 of the downside.
Sources
- Bureau of Labor Statistics, Animal care and service workers, Occupational Outlook Handbook (page read October 2026): animal trainer median pay of $39,990 (May 2025), 4% projected growth for animal trainers from 2025 to 2035, certification optional, and many states requiring self-employed animal workers to hold a business license.
- SBA, Microloans (read October 2026): loans of up to $50,000 averaging about $13,000, repayment up to seven years, interest rates generally 8% to 13%, made through intermediary lenders that set the terms.
- American Pet Products Association, Industry trends and stats (read October 2026): 95 million U.S. households own a pet, from the 2025 National Pet Owners Survey.
- Oregon Humane Society, Puppy Preschool and Puppy Kindergarten and Basic Dog Training Classes (read October 2026): Portland puppy classes at $220 for six weeks and five-week basic classes at $185.
- Oregon Bureau of Labor and Industries, Minimum wage (read October 2026): $15.55 an hour for the standard region, which includes Lane County, from July 1, 2026 through June 30, 2027.
- Oregon Department of Revenue, Corporation excise and income tax (read October 2026): 6.6% on the first $1 million of Oregon taxable income.
- 26 U.S.C. section 11(b): the federal corporate income tax rate of 21%.
- Oregon Secretary of State, Check state license requirements (read October 2026): Oregon has no general business license, and cities and counties may require licenses for businesses operating in their jurisdictions.
- Lane County Animal Services, Pet license fees (read October 2026; the page's fee table is dated 2015): kennel licenses available only outside city limits and urban growth boundaries.
- City of Eugene zoning and kennel rules for overnight boarding: not confirmed here. The city's written answer is an open item before the suites are built.
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