On June 15, 2002 Dogtopia of Tysons Corner, VA first opened its doors. Mike and I had spent the previous night painting doors and trim until about 5am in preparation for our Grand Opening later that day. I ran home for a quick shower and was back to the store by 8am to get ready. With this kind of set-up, you can already see how this was going to be quite the “learning experience” for us.

What follows is a story of “do what we say not what we did.”

Debacle #1

The contractor we hired recommended that we be the “contractor” and submit and pull all of our permits in order to save money. (we saved little to no money, but gained a valuable lesson) He also decided that our project was not large enough for him to dedicate a full crew, so he had various crews come by after they completed their primary project to work on ours. This meant that work was done at rather odd hours and there was very little consistency. Because I had signed-on as the contractor, I was ultimately responsible for all of their work - he rarely came by and did not provide regular updates.

Lesson Learned:

Hindsight is 20/20, but I cannot believe that I allowed him to treat us that way! Second time around, no more Ms. Nice Girl. We learned a ton from that first experience, which is why as a Franchisor we are so resolute about the construction process and the management of contractors.

Debacle #2

We painted everything. We decided we could save significant money by doing all of the painting ourselves. For those of you that read the Franchise Times article, you already know this part. What you don’t know is the other side of the story. When you are busy painting, you are not marketing, planning, or sleeping! We were up until 5am the day of the Grand Opening painting doors. I thought I was going to lose my mind due to paint fumes and sleep deprivation! (Did I mention I even spray-painted the bathroom partitions? I had blue spray paint in my hair for a week!)

Lesson Learned:

Time is money. There were better and more valuable ways for me to have used my time. It is always so easy to underestimate the time and cost to complete a construction project - we underestimated both in that case and paid the price when it came time for our Grand Opening. (see Debacle #3) We are not contractors and we are not painters. We are business people, so let’s spend our time on what we do best - marketing and running our business!

Debacle #3

The ceramic tile guys showed up around 3pm the next day (after another job) and proceeded to complain about the shape of the floor. I was the only one there, of course, and didn’t know what to tell them. They eventually got to work and I crossed my fingers that everything would be OK. The tile went down relatively quickly and they promised to be back the next few nights in a row to get it done by June 15.

The next afternoon I arrived and did a quick tour to check progress. A bunch of the tiles were now uneven. I didn’t know it at the time, but found out later that the drywall crew had come in the next morning and walked on it, not knowing it was still wet. (That tile never did get fixed, and we ended-up ripping it up when we redid the lobby three years later.) I had a lengthy discussion with them about the crooked tile, and they swore up and down that they could “realign” it so that it would look OK come Saturday.

So here is the “funny now, not so funny then” part. I was so busy painting (!!) that I didn’t check the Lounge to make sure everything looked OK before they left at about 2am Friday night. Well, it was far from OK, and unfortunately I did not see it until I arrived back at the store at 8am on the day of the Grand Opening. The tile in the Lounge was not finished - not even close. There was no ceramic tile three feet from the wall all the way around the room! It was just exposed, dirty, glue-y, concrete floor! What the heck was I going to do? I took a few moments to calm down and think. I remembered I had sewn a ton of cute and colorful beds I had made (that’s another story on time management) and thankfully had enough to surround the perimeter of the room. It almost looked like it was supposed to be that way, and no one was the wiser! (well, they used to be…

Lesson Learned:

Always check their work. This goes for contractors, vendors, and employees. You are the one that will have to deal with the ramifications of an incomplete or bad job, so take the time to verify. As Ronald Reagan was fond of saying, “Trust but verify.”

Despite the “debacles” listed above, it was a very special day for Dogtopia and one that I will never forget. I look back fondly on that day now, and can even laugh at it. The most important thing to do after any mistake however, is to learn from it, and that I did! All my hard-earned lessons went into what is now known as the Dogtopia Operations Manual.

Here’s to a great six years - I hope you all enjoy your businesses as much as I do!

Not all twenty tips are applicable in the dog daycare business, but I thought I would highlight a few that I felt were particularly pertinent. The full article appears here: 20 Tips If you have not previously visited the Quickbooks website, take some time and check it out. There is a tremendous amount of solid advice and tips to help you better utilize the software. Quickbooks is the software all of our stores use to manage their accounting - we have found it very effective and just right for our needs.

Tip #3 - Outsourcing Can Help Save You Time and Money

You are already utilizing this tip if you are a franchisee, but there are other ways to even further maximize your time so that spend it on what you do best - running your daycare and delighting your customers!

We recommend you utilize an accountant to help you manage your books. While we do not recommend you have them perform all of your entries, it is very helpful to have them review your books quarterly to provide general accounting and tax advice.

“Accounting. Office management. Marketing. IT. Operations. Running your own business requires so many hats, and it can be difficult to juggle them all successfully. Even if you can’t afford to hire five full-time employees to help you run your business, you can still get help.

Outsourcing the work to contractors or freelancers can be an affordable solution to keeping your business running smoothly. ”

Tip #4 - Increasing Sales The Easy Way

Dogtopia works hard to create a strong brand and have outstanding marketing vehicles - this Tip reiterates what we already do very well! As I mentioned in last week’s blog, we have some franchisees using new and creative ways to advertise, and often a very low cost - just some of your time.

“You know there’s no secret to effortless sales - just a lot of hard work and a little luck. But you can get some advice on tried and true tools that can boost your bottom line.

1. Website. Every business needs a website. It doesn’t have to have all the bells and whistles, but it should be well-designed and professional.
2. Brochure. Many people are visual and like to have an easy-to-digest form to help them make the decision about whether to buy from you. A simple 3-fold brochure can get across the message you’re trying to convey, which should be what you offer and what solutions you provide your customers.
3. Advertising. The world of advertising is ever-expanding. You have so many options: online, print, television, radio…the list goes on. Today, internet advertising is typically the cheapest and most flexible option. You can place ads on websites and blogs that pertain to your company’s industry and change them as often as you want.”

Tip #9 - Involve Your Customers

This is another area that we do very well at Dogtopia - we have created great “take homes” for customers including report cards and cute magnet frames - but you still have to use them in order for it to work!

“Studies show that it’s cheaper to create a repeat customer than to bring in a new one. Here are some tips to get your customers begging for more.
1. Incentives. Everyone likes freebies. Offer repeat buyers discounts or free gifts.
2. Communication. Keep your customers loyal by sending a monthly email newsletter or direct mail sales flyers.
3. Customer Service. If you treat customers well, they will come back. Always be courteous, and make an effort to learn your customers’ names so that you can use them while interacting!”

Tip #11 - Keep Improving

“Every business can stand to improve. That’s what keeps competition alive and kicking! Assess your business’s areas of operations regularly (every 6 months or year) to find areas you can make better.
·Is every customer service call being answered promptly?
·Do you have a high rate of returned products?
·Is your overhead costing your customers too much?
·Do you get complaints about store employees?
·Do your accounting procedures need an overhaul?

By asking yourself these types of questions, you can easily see where you can make a few small changes to make a big difference to the company.”

Until next time…

“If we all loved like our dogs, the world would be a better place…”

As published in: Franchise Times - June-July 2008

We may be approaching recessionary times, but Amy Nichol’s business isn’t going to the dogs, because the dogs are still going to the business.

Dog owners are more likely to cut back on their daily Starbucks fix than to pull their dogs from doggy daycare, the founder and CEO of Dogtopia claims.

“Dogs may not have credit cards yet, but they do have lines of credit,” Nichols says, and we all know dogs as social beings would rather spend their time and owners’ discretionary income romping with peers than at home locked in a “kennel.” Call it what you will, it’s still a cage.

Americans spend more than $41 billion a year on their pets, but still Nichols was turned down by six banks when she tried to launch her doggy daycare business in 2002. The seventh bank decided to take a chance on her, after requiring the young entrepreneur to get life insurance. Along with the loan, she used the profit from the sale of her house to finance her business. Nichols pulled her own building permits and friends helped paint and build her first center in upscale Tysons Corner, Virginia. In its second year, that unit grossed over $1 million. She never borrowed again.

In 2005, Nichols franchised Dogtopia nationally. Her first six franchisees were former customers. To date there are 34 centers open, including two company-owned units, with plans to have more than 50 up and running by 2009.

Sixty to 70 percent of the revenue comes from daycare, with boarding pulling in 20 percent, spa services 5 to 10 percent and retail 2 to 3 percent.

At the Tysons Corner location about 100 dogs attend daycare daily, with a ratio of 15 dogs per human. It’s not cheap – a 30-day pass runs around $800. Dogs are prescreened for temperament and lack of sexual interest (neutered, in other words) and placed in three different groups depending on their size and activity level – the “romper room” for little dogs; “the lounge” for laid-back dogs and the “gym” for large, active dogs.

Nichols has built her business into what she refers to as the “cool kids club.” “People want to be associated with exciting brands,” she says. “Make franchisees feel proud they’re associated with you.”

Customers also want to be part of that cool kids club, especially the Dog of the Week promotion, where the dog’s name is written on the chalkboard in the lobby. The winning dog’s picture and brief bio are posted on the Web site and the owner receives a magnet for their car that says, “My dog was Dog of the Week at Dogtopia.” “It sounds silly,” Nichols admits, “but I’m always asked, ‘How do you pick?’ And I always say, ‘It’s attendance based.’” Plus it’s “pretty cool when I see the magnets while sitting in traffic,” Nichols says.

One of her lessons learned was to outsource what you can. She uses The Findley Group for franchise sales, Windsor Realty for site location and Fishman Public Relations for PR. Finding locations can be challenging because of zoning, and sites need to be located off major arteries. “They have to be convenient, but not in strip malls where people bother you to see the dogs,” she says.

Being around dogs all day is rewarding, the former technology executive says – about half capacity should pay all your bills – but it’s not all play time. “It’s hard work, lots of cleaning,” she says. “Employees have to love dogs. You can tell after the first day if they’re going to make it.”

And while franchisees need to be business minded, they also need to know what it’s like herding dogs all day. “They need to appreciate how the business started: in the playroom cleaning up,” Nichols states.

On Wednesday and Thursday I was in Baltimore at the PCSA Region 2 Conference. You probably don’t recognize the acronym PCSA, it stands for the Pet Care Services Association and is the new name for the ABKA - American Boarding Kennel Association.

The PCSA has had a new CEO for the past 7 months and have made many progressive changes - the biggest of which being their name change. They felt that “ABKA” no longer represented their membership base and it was time to recognize that many of their members are dog daycare and training facilities. I agree with the change, but it is going to take a while for me to get used to saying it!

The PCSA is divided by Region, and Region 2 covers all of the Mid-Atlantic and most of the Northeast. The networking opportunities alone were worth the trip, but the educational opportunity soon became apparent when the first speaker took the stage. His name is Kelly Campbell and he is a certified financial planner and motivational speaker. He spoke about a variety of ways to expand your own personal horizons and grow your business. (He’s got nothing on David Handler, our coach, but he was really good)

Dog Behavior

My favorite speaker over the two days was Robin Bennett. Robin is a dog behaviorist and trainer and she also opened one of the first dog daycares in Virginia. She sold that business several years ago but continues to consult with dog daycare and boarding facilities on dog behavior and pack management. I have known Robin for years and it was great to see her really show her stuff. She knows a ton, and has even written a great book, “Off Leash Dog Play.”

I am very pleased to announce that she will be a speaker at our franchise conference in October! She is very excited to meet all of our franchisees and management team. I know we will enjoy not only her vast knowledge of behavior, but also her keen sense of humor when it comes to working with dogs!

Robin shared a ton of great tips, but one that particularly stuck-out to me was something she teaches children. Children are often taught the exact wrong thing to do when it comes to approaching strange dogs - stick out your hand and walk up to them. We all know that is a bad idea for many reasons, but what she taught them was to look at the dogs mouth - a happy, calm dog will have an open mouth. A nervous, unsure, or even aggressive dog will usually have their mouth closed. This is not 100%, but I thought it was a great tip that we can use with our own families and friends and share with clients! (If you think about your own personal experiences, I am sure you will think, “Oh yeah, that makes sense…”)

Dog Health

Another speaker who was incredibly knowledgeable was Dr. Christine Merle, a veterinarian with Brakke Consulting. She spoke about developing health protocols in animal facilities. She is a veterinarian who after years of being in private practice, now consults with animal facilities, particularly shelters and kennels. I am happy to report that Dogtopia’s standards are all up to par with her recommendations and even above and beyond when it comes to our client management protocols.

One of her biggest tips was what she referred to as “wash in, wash out.” It is a pretty simple, but very effective practice of having all staff wash their hands when they arrive to work, and wash them again before they leave. According to Dr. Merle, the number one carrier of contagions in animal facilities are the caretakers! The simple act of washing our hands can go a long way towards improving the health of the dogs and ourselves.

Despite washing hands being something we have done all our lives, most people do not wash correctly. She pointed-out that it should be warm water, regular soap (doesn’t need to be anti-bacterial), and we should wash for at least 20 seconds. A good rule of thumb is that you should be able to sing “Happy Birthday” twice to be thorough. Hands should be dried with a paper towel or hand dryer, and care should be taken to sanitize door handles and other high-contact surfaces daily.

Dr. Merle also recommended a great website for more information on having a safe and healthy facility: UC Davis Shelter Medicine.

Dog Fun

Today I attended the HH Backer Pet Retail Trade Show also in Baltimore (busy week), and I am very excited to begin working on a new retailing program in our stores.

Until next time… Peace and puppy kisses!

There are some great blogs and discussion boards for franchisees. Blue Mau Mau talks about all things franchising and recently had an article entitled “7 Habits of Highly Successful Franchisees.”

It was a play off another recent article by John Hayes entitled “7 Habits of Highly Successful Franchisors.” Below is an excerpt of the “habits” that I felt were particularly apt.

1. Be prepared for long hours.

Many times prospective franchisees look at successful owners and covet the life style they have attained. The reality is that those who have achieved to a level that affords them some luxury have earned it through many years of effort. It just doesn’t happen overnight. If you are not willing to devote yourself to the enterprise, you will suffer the consequences.

2. Trust in the system.

People pay tens of thousands of dollars to become part of a business system and then often immediately think they can do it better. This is a recipe for disaster. For at least the first year, follow the guidelines and instructions found in the operations manual as closely as possible. After that, if modifications are necessary, make them in small increments and develop specific measures to track their effectiveness. In short, don’t leave the nest until you know how to fly.

3. Provide exceptional products and/or services, honestly.

It’s not enough to be average, you must commit yourself to trying to create an experience that is noteworthy. Word of mouth is the cheapest and most effective form of advertising and is critical to the initial success of most franchises. A reputation cannot be bought, it has to be earned, and a lost reputation is near impossible to restore.

4. Learn from your colleagues.

Take time to visit the successful units in your franchise system. Pick the brains of the owners and develop an idea of how they operate. Incorporate into your operations the best practices of the people who are at the top of the ladder in your franchise system and soon you may find yourself joining them. Nurture relationships with fellow franchisees, your franchisee association, and with representatives from the franchisor. Understand that you will never “know it all” and that there is always something that can be learned from other individuals in the system.

We continue to learn something new everyday here, life is a journey, especially when you own a dog daycare!

Until next time… peace, love, and dog kisses!

I just got back from the Franchise Times Finance and Development conference in Las Vegas and had a great time.

It was my first speaking engagement as a “franchise executive,” and it was also a great opportunity to learn from some of the biggest and best franchise companies in the US.

One of the speakers was particularly entertaining and engaging and the obvious audience favorite. Jimmy John Liautaud is the Founder and CEO of Jimmy John’s Gourmet Sandwiches. He is a big guy with tons of energy and enthusiasm. His franchise has almost 700 restaurants in the United States, and although he sells sandwiches and we take care of dogs, we actually have quite a bit in common in terms of business philosophies. For today’s edition, I thought I would share a few of those with you.

1. “Pull them up”

Jimmy John believes that rather than asking employees to “step up,” owner/operators should be pulling them up. This goes along with my theory that we have to lead by example. We can’t expect them to make the “right” or “preferred” decision, if they don’t know what it is. I am constantly reminding myself of this as we not only grow our stores, but also the management team here at Dogtopia Home Office. Oh, and once doesn’t cut it - I use the rule of 3s - tell them three times in three different ways.

2. “You don’t have to like me, but you do have to respect me.”

It can be very difficult in the first few months to establish yourself as the leader of your business. You want your staff to like you, you want them to feel like you are friends. Marketing, operations, finance - you have more than enough on your plate - the last thing you need is employee issues! But, as our franchisees will tell you, challenges will present themselves eventually and the sooner you deal with it the better. For every employee who shows up late that you don’t address, two are likely to follow. I learned the hard way! I know that there have been employees over the years that weren’t necessarily thrilled with me, but I also know that I have always been fair. Treat everyone equally, and hold them all to the same standards. No only will you have better results from your staff, you will also sleep better at night!

3. Have communication with every store, every month.

We are reaffirming our commitment to continual support of our franchisees and their businesses. We cannot commit to visiting every store every month, but our franchisees have communication with the Dogtopia Home Office multiple times per month. This comes in the form of our monthly Marketing conference call, monthly Operations webinar, and their personal coaching sessions twice per month.

I hope you enjoyed my short recap, I need to go get some rest now!

I often come across great business articles and this one in particular I felt was very helpful. The title is the “10 Mistakes Business Owners Make and How to Avoid Them.” The full version may be downloaded here:

10 Business Mistakes And How To Avoid Them

Below are three “mistakes” that I felt most resonated with my experiences at Dogtopia - both starting my business and some of the most common issues our franchisees experience.

Not Delegating

It can be difficult to assign tasks to your staff, particularly the not-so-fun tasks such as cleaning the bathrooms or picking-up outside. It also feels good to be needed and important, but the more dependent your day to day operations and staff are on your direct involvement, the less time you will have for some of the most important business activities. You have hired employees to allow yourself the time to do the things that only you can – providing excellent service and establishing trust with your customers, forging alliances with other businesses and vendors, and planning and participating in outreach events both off-site and at your store.

The phrase has become almost cliché, but successful business owners, and dog daycare owners, spend the majority of their time ON their business, not IN their business. Invest the proper time to train your employees, then step back and let them do their job.

Not Allowing for “Genius Time”

Our resident business coach, David Handler, is very fond of this phrase, and with good reason – you will be amazed what you will come up when you give yourself time to think and reflect. Every business has its challenges and ours is no exception, but not taking the time to think through these challenges leaves you destined to repeat them. Call it a “debriefing” or a “post mortem,” but the next time you have a big issue to tackle, take the time to think it through. One of my favorite quotes is “the definition of insanity is doing the same thing over and over and expecting different results.” While we provide many guidelines and assistance with the operation of your business, you will all develop your own unique management and operational style. The most effective operators recognize that every day will not be perfect, but when it isn’t they take the time to think through the events and how to best avoid it happening in the future.

Trying To Go It Alone

It can be very isolating starting your own business. At the end of the day you may often feel as though you have no one to turn to who will understand, and if you reach out that you are admitting you can’t do it by yourself.

For as much as we encourage communication with Dogtopia home office, this is by far the most common concern we have with franchisees. You bought a franchise for a reason – to have systems and procedures to follow, but also to have someone who can relate and help you. We expect phone calls and emails – we want to hear from you good or bad. I remember thinking when I opened our first location that I just wished I had someone I could call - not to always get the answer, but to empathize with what I was going through. It would have been great just to hear that I was doing was the right thing, even if it was hard or outside of my comfort zone.

Until next time…

Thanks to TIVO I was able to watch Oprah Winfrey’s segment on puppy mills over the weekend. It was a combination piece on puppy mills, overpopulated shelters and euthanasia, and spay and neutering programs. Oprah herself vowed “to never buy a dog again,” and was visibly moved by the footage that was shown. Her crack reporter, Lisa Ling, went around to several Pennsylvania puppy mills to expose the horrible treatment and cruelty shown towards these dogs - many of whom have never walked on solid ground.

The puppy mills were bad enough, but the waterworks really started flowing during their segment on euthanization. A sweet looking hound mix was taken to be euthanized - and he wagged his tail the whole way! This was not a sick or injured animal, nor was he aggressive or “unadoptable,” just unwanted. What a tragedy - and all too common - 4 million dogs are euthanized every year waiting to be adopted.

To end on a more positive note, I would like to draw your attention to a few of our favorite guys and gals. Most Dogtopia locations foster dogs at no cost to rescue groups - here are a few that are currently in our care:

Tomi & Trudy at Dogtopia of Houston, TX -

Sarge at Dogtopia of White Flint, MD (HQ)

Please consider adopting your next best friend! One of the best websites for pet adoption is Petfinder. They can help you find virtually any breed (or combination!) all across the United States.

Have you run out in traffic after her? Have you spent thousands on surgery when he ate your sock?

Me? I started a company! Dogtopia was created because I felt guilty leaving my dog, Griffin, home by himself all day. I would get home exhausted from another 12 hour day, and he would be ready to play. When I would have to board him, I would get the cold shoulder for days after bringing him home. What was a guilty Dog Mom to do? Open a business where he could play all day instead of be alone!

How ironic then that a few months after we opened Griffin was “dismissed.” Turns out he is not the best daycare dog - he would get in all the other dogs faces and annoy them. He thought it was his own private daycare and wanted the other dogs to know it! He quickly became an “office dog,” but at least he got to come to work with me.

So how about you? I want to hear what you have done for your dog - the crazier the better! (next week - craziest thing you have bought for your dog…)

I feel the need to vent here a little bit as I have noticed a disturbing trend.  People “returning” their dog because he or she is “not what they expected” and then going and either buying or adopting another.  (younger, smaller, cuter, who knows…)

We happily foster dogs at several Dogtopia locations and because the dogs are in daycare all day and have a pretty good life, it seems as though that makes it easier for people to return them when the dog is either (fill in the blank - bigger, louder, more challenging…)  than anticipated.  So frustrating! Now I know this is nothing new, and shelters and rescue groups have been dealing with this for years, but the other day I had to come back to my office to cool-off after I witnessed someone “returning” her dog to us because she was “a lot of work and not completely potty trained.” Mind you, we are not a shelter, but because we foster dogs here, this person thought they would simply bring the dog back to us and that would be the end of it. I wanted to give them a piece of my mind and make them feel bad, but I just smiled and said we would call Oldies But Goodies Rescue and speak with them about it. Good news for this particular cutie, she found a great new home only a few weeks later.

God bless all of you who manage and volunteer with animal rescues and shelters - I could not do what you do. I am just too judgmental and would not let them off so easy!  (I will add, however, that we have successfully kept many behaviorally challenged dogs in their homes due to them getting exercise and socialization at Dogtopia).  Bottom line, dogs are a commitment and should be permanent members of our families - not something that can be returned when it becomes inconvenient.