How do I check what a dog walking business really earns?
Look past the sales total to the client roster, how closely the stops sit together, what each walker costs per walk, how much time goes to travel and cancellations, and how many walks the owner does personally. Ask for booking records and payroll, then compare them with the stated income.
A dog walking business has no counter and almost no equipment. Its income comes from clients who book walks again and again, and its costs come from the people who do the walking. To see what it really earns, follow the work from the client’s booking to the walker’s pay. The sales total alone cannot show you that.
Read the client roster
Ask for a list of active clients showing how often each books and how long each has been with the business. Names can be removed or coded for privacy. Look for a base of regular weekly clients rather than a few large accounts. Ask how many came from the owner’s personal referrals, because those clients may not stay.
Route density and travel time
Walks that sit close together let a walker do more in a shift. Ask for the service area and a sample of daily routes. Time spent driving or waiting between stops is paid time that earns nothing. A business spread across a wide area may cost more to run than the sales suggest.
Walker pay and cancellations
Compare what clients pay per walk with what walkers receive, including any vehicle costs. Ask how walkers are engaged, and have your accountant look at whether they are treated as employees or contractors. Ask how late cancellations are handled and whether the records show them.
The owner’s own walks
If the owner walks dogs every day, part of the income is the owner’s labour. Ask which walks the owner does and what it would cost to replace them. What if the owner is the business explores that problem, and how to check what a dog grooming business really earns shows a related approach.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Canada Revenue AgencyGovernmentEmployee or Self-employed
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