How to create a financial forecast for a dog walking company?

Creating a financial forecast for your dog walking company, and ensuring it stays up to date, is the only way to maintain visibility on future cash flows.
This might sound complex, but with the right guidance and tools, creating an accurate financial forecast for your dog walking company is not that hard.
In this guide, we'll cover everything from the main goal of a financial projection, the data you need as input, to the tables that compose it, and the tools that can help you build a forecast efficiently.
Without further ado, let us begin!
Why create and maintain a financial forecast for a dog walking company?
Creating and maintaining an up-to-date financial forecast is the only way to steer the development of your dog walking company and ensure that it can be financially viable in the years to come.
A financial plan for a dog walking company enables you to look at your business in detail - from income to operating costs and investments - to evaluate its expected profitability and future cash flows.
This gives you the visibility needed to plan future investments and expansion with confidence.
And, when your trading environment gets tougher, having an up to date dog walking company forecast enables you to detect potential upcoming financing shortfalls in advance, enabling you to make adjustments or secure financing before you run out of cash.
It’s also important to remember that your dog walking company's financial forecast will be essential when looking for financing. You can be 100% certain that banks and investors will ask to see your numbers, so make sure they’re set out accurately and attractively.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

What information is needed to build a dog walking company financial forecast?
The quality of your inputs is key when it comes to financial modelling: no matter how good the model is, if your inputs are off, so will the forecast.
If you are building a financial plan to start a dog walking company, you will need to have done your market research and have a clear picture of your sales and marketing strategies so that you can project revenues with confidence.
You will also need to have a clear idea of what resources will be required to operate the dog walking company on a daily basis, and to have done your research with regard to the equipment needed to launch your venture (see further down this guide).
If you are creating a financial forecast of an existing dog walking company, things are usually simpler as you will be able to use your historical accounting data as a budgeting base, and complement that with your team’s view on what lies ahead for the years to come.
Let's now zoom in on what will go in your dog walking company's financial forecast.
The sales forecast for a dog walking company
From experience, it usually makes sense to start your dog walking company's financial projection with the revenues forecast.
The inputs used to forecast your sales will include the historical trading data of your dog walking company (which can be used as a starting point for existing businesses) and the data collected in your market research (which both new ventures and existing businesses need to project their sales forward).
Your dog walking company's sales forecast can be broken down into two key estimates:
- The average price
- The number of monthly transactions
To assess these variables accurately, you will need to consider the following factors:
- Dog ownership trends: As more people adopt dogs and become pet owners, the demand for dog walking services may increase, leading to a potential increase in the average price per walk or the number of monthly transactions for your business. Keep an eye on the local and national trends in dog ownership to better forecast your sales.
- Seasonal weather changes: The weather can have a significant impact on your dog walking business. During colder months, you may see a decrease in the number of monthly transactions as pet owners may opt to walk their dogs themselves. In contrast, during warmer months, you may see an increase in demand for your services, potentially leading to a higher average price per walk.
- Competition: Keep an eye on your competition in the dog walking industry. If there are several established dog walking businesses in your area, you may need to adjust your prices or services to remain competitive. Alternatively, if you are the only dog walking company in your area, you may be able to charge higher prices and attract more clients.
- Economic conditions: Economic conditions can impact the demand for dog walking services. During times of economic downturn, pet owners may be more likely to cut back on non-essential expenses, potentially leading to a decrease in the number of monthly transactions. In contrast, during times of economic prosperity, you may see an increase in demand for your services.
- Pet health and wellness trends: As more people become interested in the health and wellness of their pets, there may be a higher demand for specialized dog walking services, such as longer walks or walks in specific environments. Keep an eye on emerging trends in the pet industry to adjust your services and prices accordingly.
Once you have a sales forecast in place, the next step will be to work on your overhead budget. Let’s have a look at that now.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

The operating expenses for a dog walking company
The next step is to estimate the costs you’ll have to incur to operate your dog walking company.
These will vary based on where your business is located, and its overall size (level of sales, personnel, etc.).
But your dog walking company's operating expenses should normally include the following items:
- Staff Costs: This includes wages, salaries, and benefits for your dog walkers and any other employees you may have.
- Accountancy Fees: You may need to hire an accountant to help you manage your finances and file taxes for your dog walking company.
- Insurance Costs: As a dog walking company, you will need to have liability insurance to protect you in case of any accidents or injuries involving the dogs in your care.
- Software Licenses: You may need to purchase software or apps to help you manage your bookings, schedule, and payments.
- Banking Fees: This includes fees for maintaining a business bank account, processing credit card payments, and any other banking services you may need.
- Marketing Expenses: This includes the cost of advertising your dog walking services, creating business cards or flyers, and any other marketing materials.
- Transportation Costs: You will need to factor in the cost of gas, car maintenance, and insurance for your vehicle if you use it to transport dogs to and from walks.
- Supplies: This includes items such as poop bags, treats, toys, and other supplies you may need while walking dogs.
- Uniforms: You may choose to provide your employees with branded uniforms or t-shirts to wear while walking dogs.
- Training and Education: It's important to stay up-to-date on dog behavior and safety, so you may need to invest in training and education courses for yourself and your employees.
- Office Expenses: This includes the cost of renting office space, utilities, and office supplies such as paper, pens, and printer ink.
- License and Permit Fees: Depending on your location, you may need to pay for a business license or permit to operate your dog walking company.
- Legal Fees: It's important to consult with a lawyer to ensure you have all the necessary contracts, waivers, and legal protections in place for your business.
- Taxes: As a business owner, you will need to pay taxes on your company's profits, so it's important to budget for this expense.
- Miscellaneous Expenses: This includes any other miscellaneous expenses that may arise, such as unexpected repairs or equipment replacements.
This list is not exhaustive by any means, and will need to be tailored to your dog walking company's specific circumstances.
What investments are needed to start or grow a dog walking company?
Creating and expanding a dog walking company also requires investments which you need to factor into your financial forecast.
Capital expenditures and initial working capital items for a dog walking company could include elements such as:
- Company vehicle for transporting dogs
- Leashes, collars, and other dog walking equipment
- Dog waste bags and disposal system
- Grooming supplies and equipment
- Security system for safety of dogs and walkers
Again, this list is not exhaustive and will need to be adjusted according to the circumstances of your dog walking company.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

The financing plan of your dog walking company
The next step in the creation of your financial forecast for your dog walking company is to think about how you might finance your business.
You will have to assess how much capital will come from shareholders (equity) and how much can be secured through banks.
Bank loans will have to be modelled so that you can separate the interest expenses from the repayments of principal, and include all this data in your forecast.
Issuing share capital and obtaining a bank loan are two of the most common ways that entrepreneurs finance their businesses.
What tables compose the financial plan for a dog walking company?
Now let's have a look at the main output tables of your dog walking company's financial forecast.
The projected profit & loss statement
The projected profit & loss shows how profitable your dog walking company is likely to be in the years to come.

For your dog walking company to be financially viable, your projected P&L should ideally show:
- Sales growing above inflation (the higher the better)
- Profit margins which are stable or expanding (the higher the better)
- A net profit at the end of each financial year (the higher the better)
This is for established dog walking companies, there is some leniency for startups which will have numbers that will look a bit different than existing businesses.
The projected balance sheet
Your dog walking company's forecasted balance sheet enables you to assess your financial structure and working capital requirements.
It is composed of three types of elements: assets, liabilities and equity:
- Assets: represent what the business owns and uses to produce cash flows. It includes resources such as cash, equipment, and accounts receivable (money owed by clients).
- Liabilities: represent funds advanced to the business by lenders and other creditors. It includes items such as accounts payable (money owed to suppliers), taxes due and loans.
- Equity: is the combination of what has been invested by the business owners and the cumulative profits and losses generated by the business to date (which are called retained earnings). Equity is a proxy for the value of the owner's stake in the business.

The cash flow forecast
Your dog walking company's cash flow forecast shows how much cash your business is expected to consume or generate in the years to come.

It is best practice to organise the cash flow forecast by nature to better explain where cash is used or generated by the dog walking company:
- Operating cash flow: shows how much cash is generated by the operating activities
- Investing cash flow: shows how much will be invested in capital expenditure to maintain or expand the business
- Financing cash flow: shows if the business is raising new capital or repaying financiers (debt repayment, dividends)
Keeping an eye on (and regularly updating) your dog walking company's cash flow forecast is key to ensuring that your business has sufficient liquidity to operate normally and to detect financing requirements as early as possible.
If you are trying to raise capital, you will normally be asked to provide a monthly cash flow forecast in your dog walking company's financial plan - so that banks or investors can assess seasonal variation and ensure your business is appropriately capitalised.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Which tool should you use to create your dog walking company's financial projections?
Building a dog walking company financial forecast is not difficult provided that you use the right tool for the job. Let’s see what options are available below.
Using online financial forecasting software to build your dog walking company's projections
The modern and easiest way is to use professional online financial forecasting software such as the one we offer at The Business Plan Shop.
There are several advantages to using specialised software:
- You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
- You have access to complete financial forecast templates
- You get a complete financial forecast ready to be sent to your bank or investors
- You can easily track your actual financial performance against your financial forecast, and recalibrate your forecast as the year goes by
- You can create scenarios to stress test your forecast's main assumptions
- You can easily update your forecast as time goes by to maintain visibility on future cash flows
- You have a friendly support team on standby to assist you when you are stuck
- It’s cost-efficient and much cheaper than using an accountant or consultant (see below)
If you are interested in this type of solution, you can try our forecasting software for free by signing up here.
Hiring a financial consultant or chartered accountant
Hiring a consultant or chartered accountant is also an efficient way to get a professional dog walking company financial projection.
As you can imagine, this solution is much more expensive than using software. From experience, the creation of a simple financial forecast over three years (including a balance sheet, income statement, and cash flow statement) is likely to start around £700 or $1,000 excluding taxes.
The indicative estimate above, is for a small business, and a forecast done as a one-off. Using a financial consultant or accountant to track your actuals vs. forecast and to keep your financial forecast up to date on a monthly or quarterly basis will naturally cost a lot more.
If you choose this solution, make sure your service provider has first-hand experience in your industry, so that they may challenge your assumptions and offer insights (as opposed to just taking your figures at face value to create the forecast’s financial statements).
Why not use a spreadsheet such as Excel or Google Sheets to build your dog walking company's financial forecast?
You and your financial partners need numbers you can trust. Unless you have studied finance or accounting, creating a trustworthy and error-free dog walking company financial forecast on a spreadsheet is likely to prove challenging.
Financial modelling is very technical by nature and requires a solid grasp of accounting principles to be done without errors. This means that using spreadsheet software like Excel or Google Sheets to create accurate financial forecasts is out of reach for most business owners.
Creating forecasts in Excel is also inefficient nowadays:
- Software has advanced to the point where forecasting can be done much faster and more accurately than manually on a spreadsheet.
- With artificial intelligence, the software is capable of detecting mistakes and helping decision-making.
Spreadsheets are versatile tools but they are not tailor-made for reporting. Importing your dog walking company's accounting data in Excel to track actual vs. forecast is incredibly manual and tedious (and so is keeping forecasts up to date). It is much faster to use dedicated financial planning tools like The Business Plan Shop which are built specially for this.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Use our financial forecast templates for inspiration
The Business Plan Shop has dozens of financial forecast examples available.
Our templates contain both a financial forecast and a written business plan which presents, in detail, the company, the team, the strategy, and the medium-term objectives.
Our templates are a great source of inspiration, whether you just want to see what a complete business plan looks like, or are looking for concrete examples of how you should model financial elements in your own forecast.

Takeaways
- A financial projection shows expected growth, profitability, and cash generation for your business over the next three to five years.
- Tracking actuals vs. forecast and keeping your financial forecast up-to-date is the only way to maintain visibility on future cash flows.
- Using financial forecasting software makes it easy to create and maintain up-to-date projections for your dog walking company.
You have reached the end of our guide. We hope you now have a better understanding of how to create a financial forecast for a dog walking company. Don't hesitate to contact our team if you have any questions or want to share your experience building forecasts!
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Also on The Business Plan Shop
- Example of financial projections
- How to project revenues for a business?
- Example of financial forecast for business idea
Know someone who runs or wants to start a dog walking company? Share our financial projection guide with them!