What makes Zoomies a 'luxury' dog hotel?

Zoomies provides a luxury experience with features like executive suites for larger dogs, glass-fronted rooms to reduce stress, UVC lighting for hygiene, and detailed daily reports sent to owners with photos and updates.

How much did it cost to build out the dog hotel?

The initial build-out cost was approximately $40,000, based on $2,000 per room, with plans for further expansion to double the facility size.

What are the daily operations like at Zoomies?

Operations involve managing both daycare and boarding services, ensuring dogs are socialized, exercised, and safe. This includes group play, individual attention, and meticulous cleaning protocols.

How do they handle potential issues like sickness or aggression among dogs?

They prioritize hygiene with UVC lighting and regular cleaning to prevent kennel cough. Strict organizational systems and record-keeping are in place to manage medication and dog interactions.

What is the founders' financial strategy for reinvestment?

Josh and Cara reinvest most of their earnings back into the business, taking only a small amount weekly ($7.90 after tax each) to cover personal expenses, aiming to grow and expand to new communities.

What advice do Josh and Cara have for aspiring entrepreneurs?

They advise taking a leap of faith, holding on, and jumping into their venture. They emphasize the importance of trust in business partners and liking every aspect of the business, not just the dogs.

What challenges do they foresee in scaling the business?

A major challenge identified is replicating the personal customer connection and service in new locations, as many clients are drawn to Josh and Cara themselves. Raising prices is also suggested.

Key Moments

Making $2500 Per Day with a Luxury Dog Hotel | Undercover Millionaire

Graham Stephan

Education4 min read23 min video

Oct 24, 2023|505,655 views|12,199|911

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Key Moments

TL;DR

Luxury dog hotel owners detail their journey to $2500/day from humble beginnings.

Key Insights

Josh and Cara built a luxury dog hotel starting from scratch, driven by a passion for dogs and a perceived market gap.

The business model focuses on a high-end, personalized experience for both dogs and owners, emphasizing cleanliness, safety, and comfort.

Financial success was achieved through strategic pricing, excellent customer service, and reinvesting profits for expansion.

Personal sacrifices, including selling assets and living frugally, were crucial for initial startup and growth.

Maintaining a strong brand reputation through superior service, customer engagement (like daily reports), and community involvement is key.

The business is expanding significantly, creating new suites and play areas, reflecting strong demand and future growth potential.

THE ORIGIN STORY OF ZUMIES

Josh and Cara, the young owners of a luxury dog hotel called Zumies, describe their venture into the pet care industry. Josh, inspired by his love for dogs and a desire to create a more personal, home-like experience than existing commercial facilities, saw a market need. He and his dad initially brainstormed business ideas, and Josh's passion for dogs, particularly his German Shepherd, solidified the concept. They 'winged it,' relying on the demand they observed in their area for a safe and caring environment for pets when owners are away or at work.

DESIGNING A LUXURY EXPERIENCE

The physical space of Zumies is intentionally designed to be inviting, clean, and home-like. White walls create an open and hygienic atmosphere. Unlike traditional facilities, they avoid desks to encourage direct interaction with the dogs. The 'executive suites' are spacious (4ft x 6ft), accommodating larger dogs with clear identification. A unique feature is the use of glass fronts in the suites, reducing dog stress compared to wire kennels, simplifying cleaning, and enhancing hygiene. UVC lighting and monthly filter replacements in each room further ensure a germ-free environment.

FINANCIALS AND PRICING STRATEGY

Zumies generates income from both boarding and daycare services. While the initial build-out cost was around $40,000 for 20 suites, the business operates at a high capacity, often turning away clients. Their pricing includes an 'unlimited daycare' package at $250/month (20 visits), which, at about $12/day, is considered a highly competitive introductory rate that fuels boarding business. They acknowledge this price is likely too low long-term but served to attract initial customers. The owners live frugally, taking only about $790 per week collectively after taxes to reinvest heavily in business growth and expansion.

THE JOURNEY AND GROWTH

Josh's entrepreneurial journey began at 16 with mobile detailing, followed by a successful YouTube channel about video games that garnered 80,000 subscribers. However, the solitary nature of YouTube led him to dislike his hobby, prompting a pivot. The initial capital for Zumies came from selling Josh's van, bought for a planned pressure washing business, and Cara's car. They were unemployed and took a significant leap of faith. Within six months, the business was booming, often hitting full capacity on weekends, necessitating hiring staff and planning for expansion due to lack of space.

CUSTOMER RELATIONS AND DAILY OPERATIONS

A core element of Zumies' success is its customer service, particularly the daily reports sent to owners. These reports include pictures of the pet, a description of their activities, which dogs they played with, and any health notes. This transparency and engagement build trust and reassurance for owners. Operations involve managing both daycare and boarding, with distinct areas for different dog sizes. Activities include supervised group play, bathing services, and ensuring dogs are exercised and socialized. The staff's genuine care and interaction are highlighted as crucial to the luxury experience.

EXPANSION AND FUTURE PLANS

Responding to overwhelming demand, Zumies is undergoing a major expansion, transforming their old large dog yard into a new 3,800 sq ft building. This expansion will effectively double their capacity, adding 40 new luxury suites, including high-end options with personal doggy TVs designed to provide background noise and comfort. They plan to connect the new building seamlessly with the existing structure. Despite the success and evident demand, the owners are also eyeing further expansion into new communities, though replicating the personalized customer connection will be a key challenge.

THE ENTREPRENEURIAL MINDSET AND ADVICE

Josh and Cara emphasize that running a business, especially with a significant other, requires absolute trust and clear role definition. Cara, who handles much of the customer-facing interactions, took a leap of faith by choosing Zumies over college. Their advice to young entrepreneurs is to 'take the leap of faith' and be prepared for hard work. They highlight that success isn't just about loving dogs; it requires organization, people skills, and a willingness to handle all aspects of the business, from operations to marketing. The owners also plan to eventually raise prices to reflect their high-quality services.

Mentioned in This Episode

●Products

●Software & Apps

●Companies

●Organizations

●Books

●Concepts

Operating a Luxury Dog Hotel: Dos and Don'ts

Practical takeaways from this episode

Do This

Position yourself to easily exit doors to avoid dogs scattering.

Use glass fronts for suites to reduce dog stress and improve hygiene.

Implement UVC lighting and regular filter changes for air purification and germ killing.

Offer detailed daily reports with pictures and demeanor assessments for boarding guests.

Ensure a clean and inviting environment with a personal, hands-on approach to dogs and customers.

Invest in durable, chew-proof dog beds and accommodations.

Provide separate indoor and outdoor play areas to accommodate various weather conditions.

Focus on excellent customer service and building community support.

Clearly define roles within a business partnership.

Reinvest profits back into the business for growth and expansion.

Avoid This

Do not sit behind a desk; get down and interact with the dogs.

Avoid overly commercialized or impersonal facilities; aim for a home-style feel.

Do not underestimate the importance of organization and record-keeping, especially with medication.

Do not just love dogs; appreciate all aspects of the business, including people and operations.

Be mindful of the smell and texture of dog waste.

Do not charge extra for basic services like daily photo reports.

Zoomies Pricing for Unlimited Daycare

Data extracted from this episode

Package	Visits per month	Price	Price per day (approx.)
Unlimited Daycare	20	$250	$12.50

Common Questions

Josh and Cara started Zoomies with a leap of faith, selling their van and car, and working without external funding. They capitalized on a perceived demand for a more personal, home-style dog daycare in their area.

Topics

Dog Daycare Dog Boarding Luxury Pet Services Facility Design Pet Care Startup Business Expansion V Log

Mentioned in this video

Concepts

German Shepherd

Josh's dog, which he got when he turned 15, highlighting his long-standing love for dogs.

Books

Bluey

A children's show that is suggested as a potential viewing option for dogs at the facility.

Peppa Pig

A children's show that the host has never seen, used as a comparison for Bluey.

Organizations

Zoomies

A dog boarding and daycare facility run by Josh and Cara, offering overnight stays and daycare services for dogs while owners are away.

Software & Apps

Google Lens

An app used on the OnePlus Open for searching and purchasing products quickly.

Products

OnePlus Open

A sponsor's new foldable phone, highlighted for its lightness, durability, multitasking capabilities, and camera features, used throughout the video for filming.

Companies

Canda

The brand of bulletproof dog cots used at Zoomies, designed to withstand chewing.