I. Industry Risk Analysis

(1) Policy Risk

From the perspective of the policy lifecycle theory, the pet boarding industry is still in a period of policy ambiguity, and no unified standards have been established in many places. Start – up enterprises face the risk of fragmented local policy pilots (such as large differences in health disinfection and animal welfare standards). The cost of operating in compliance is high, and it is difficult to replicate across regions. If there are incidents of pet abuse or epidemic spread in the industry, it may trigger an accelerated tightening of policies (such as mandatory installation of monitoring or raising the threshold for professional qualifications). Some cities may introduce restrictive regulations by referring to the “homestay” or “childcare” industries (such as banning business in residential areas and setting rigid requirements for area and staff – to – pet ratios), which may force existing stores to be renovated or shut down.

(2) Economic Risk

The pet boarding industry currently faces multiple risks under economic cycle fluctuations: During the economic downturn, consumers’ disposable income shrinks. Non – essential pet boarding services are the first to be affected, and the market demand shows obvious volatility. The property rent and labor costs that the industry depends on show a rigid upward trend. Coupled with fixed expenses such as equipment depreciation and epidemic prevention and disinfection, the profit margin is squeezed periodically. The financing environment is affected by interest rate fluctuations, and it is more difficult for small and medium – sized start – up enterprises to obtain expansion funds, highlighting the vulnerability of cash flow. At the same time, the industry has fierce homogeneous competition. Price wars occur frequently during the economic contraction period. New entrants face double pressures of rising customer acquisition costs and falling customer retention rates.

(3) Social Risk

The pet boarding industry faces the risk of a generational gap in consumption habits. The instant service needs and high willingness to pay of Generation Z and millennials conflict with the price sensitivity of traditional consumer groups. During the economic downturn, it is easy to cause disputes over service premiums. The new generation of pet owners pay attention to the emotional companionship attribute of pets. They may make moral criticism due to the lack of spiritual added value in boarding services. Coupled with the cognitive differences in the value of “anthropomorphic pet – keeping” in a low – fertility society, there is a cultural identity crisis. The different generations have different understandings of service standardization (digital monitoring VS trust in acquaintance – based pet – sitting), which leads to a sharp increase in the probability of service disputes and forms an area of high – pressure public opinion.

(4) Legal Risk

The pet boarding industry faces multiple legal risks: In terms of business licenses, it is necessary to comply with the “Animal Epidemic Prevention Law” and local special industry qualification requirements. Illegal operation without a license will face administrative penalties. In the risk of liability for animal injuries, if improper care leads to the injury or death of a pet, civil compensation shall be borne in accordance with the “Civil Code” and there may be lawsuits related to animal protection. If the contract terms do not clearly define details such as the scope of services and exemption situations, it is easy to cause disputes over consumers’ rights and interests. In terms of personal information protection, it is necessary to comply with the “Personal Information Protection Law”. The leakage of sensitive information such as customers’ pet medical records will trigger high – amount fines. The risk of labor safety includes disputes over work – related injury identification caused by employees being scratched or bitten by pets. It is necessary to improve safety training and insurance configuration.

II. Entrepreneurship Guide

(1) Suggestions on Entrepreneurial Opportunities

Currently, entrepreneurial opportunities in the pet boarding industry are concentrated in differentiated services and scenario – based innovation: Rely on communities to set up small – scale pet hotels, provide customized feeding plans, all – day monitoring and live – streaming, and pet social activities, creating a dual – format of “pet daycare + social space”. Focus on developing the short – term business – trip (3 – 7 days) boarding needs of young white – collar workers and family – style pet – sitting needs during peak holiday periods. Lock in high – net – worth pet owners through a membership system. At the same time, integrate pet hospitals and beauty institutions to establish a service alliance, and use smart collars to monitor pet health data in real – time to form a value – added service chain. Pilot a composite space of “pet boarding + coffee and light meals” in core business districts to solve the pain points of pick – up and drop – off and create a consumption scenario for human – pet interaction.

(2) Suggestions on Entrepreneurial Resources

Entrepreneurs in the pet boarding industry need to integrate multiple resources as a priority: When choosing a location, cooperate with community property management or commercial centers to use idle space to reduce rent costs. Introduce intelligent monitoring equipment and pet health management platforms to improve the standardization level of services. Establish strategic cooperation with pet hospitals and pet food brands to share customer resources and expand value – added services. Build a flexible employment platform to reserve professional pet care staff to cope with seasonal fluctuations in demand. Solve the start – up capital problem through the membership pre – payment model, and at the same time develop an online – offline integrated reservation system to optimize resource allocation. Focus on obtaining animal epidemic prevention compliance qualifications and commercial insurance to avoid operational risks.

(3) Suggestions on Entrepreneurial Teams

Entrepreneurial teams in the pet boarding industry need to form a composite talent team with experience in pet care, customer service, and operation management as a priority. The core members should include at least one licensed veterinarian or professional pet care staff to control the service quality. The operation manager should have the ability to integrate community resources and experience in operating O2O platforms. At the same time, a member good at community marketing should be arranged to build user stickiness. It is recommended to adopt an incentive model of “basic salary + service commission + user – rating bonus”, strengthen service standardization training and emergency response plan drills. The core team should hold shares and sign non – competition agreements. In the initial stage, the team size should be controlled at 5 – 8 people to quickly iterate the service process. Focus on training 3 reserve store managers with the potential for branch management. Synchronize customer feedback data through the daily morning meeting system, and conduct special assessments on pet behavior science and first – aid knowledge every month.

(4) Suggestions on Entrepreneurial Risks

Entrepreneurs in the pet boarding industry need to focus on risk management and control of legal compliance, operational safety, and service quality. The location must meet the requirements of fire protection and animal epidemic prevention, and ensure that the business license, health permit, and animal diagnosis and treatment record are complete. A standardized boarding agreement should be formulated to clearly define the division of responsibilities and compensation standards. The venue design should prevent pets from escaping and cross – infection, install 24 – hour monitoring, and purchase pet accident insurance. Employees need to receive professional training to master basic veterinary knowledge and emergency treatment skills. A customer classification management system should be established, vaccine certificates should be strictly reviewed, and smart collars should be introduced to monitor pet health in real – time. Adopt the pre – payment model to ensure cash flow, reserve 3 months of operating funds to cope with off – season risks, and regularly update disinfection equipment and security systems. Increase customer stickiness through the membership system and differentiated value – added services (such as pet SPA and behavior training), and establish an online evaluation system to handle disputes in a timely manner.