Do you have a Profitable Pet Sitting Business?
When you first started your Pet Sitting business, the costs of running a business may not have crossed your mind. However, as time goes on, expenses start piling up, making it crucial to closely monitor your business’s profitability.
In this blog post, I reveal the top five numbers I prioritize tracking to ensure my Pet Sitting business is profitable.
5 Must-Track Numbers for a Profitable Pet Sitting Business
Keep track of your total revenue, which includes the fees you charge for your all of your services. Monitoring your revenue will give you an overview of your business’s financial performance.
Track your expenses to understand the costs associated with running your pet sitting business. This includes costs such as wages, advertising, supplies, insurance, transportation/mileage, and any other overhead expenses. By monitoring your expenses, you can identify areas where you can cut costs and improve profitability.
Tip: It’s a good idea to regularly review bank and credit card statements to check what you are paying for – it’s easy to forget about those small subscription costs you might not be using.
#3. Booking Rate
Calculate your booking rate, which measures the percentage of time your pet sitting services are booked.
For example, you have 5 walkers and there are 5 slots available per day for midday walks. You have 125 booking slots available a week (5 slots x 5 walker for 5 days). What % of that is booked?
A high booking rate % indicates that you are effectively utilizing your resources and maximizing your earning potential. It will also help you decide when the right time is to hire more Sitters.
#4. Customer Acquisition Cost (CAC)
Determine the cost of acquiring each new customer. You should calculate your CAC by dividing your total marketing and advertising expenses by the number of new customers acquired within a specific period. Make sure you only include new customers and that you include all marketing costs – for example if you are paying someone to do social media for you then that cost should be included.
Tracking your CAC will help you decide what is working for you and what you need to cut from your marketing budget.
#5. Customer Lifetime Value (CLV)
Determine the average revenue you generate from each customer over their lifetime with your business. This includes repeat bookings and additional services (for example if they booked a Wedding Service as well as Pet Sitting/Dog Walking).
If you know what your your CLV is you can focus on customer retention strategies to make the lifetime of a customer more valuable to you.
Tracking these numbers will help you make better decisions about where to spend your money to remain profitable.
Please note that the information provided in this blog is solely based on personal opinion and should not be considered as financial advice.