I'm a dog walker and sit dogs in their own home. Insurance costs me £120-ish per year. I have business insurance on my vehicle and I have to factor in costs like holiday pay, sickness, purchasing equipment like leads, treats, poo bags, longlines, a doggy first aid kit, clothing for myself, waterproofs, decent footwear, a human first aid kit etc.
I'm qualified in canine first aid (another cost to consider) and study online in my free time to learn about canine body language etc. You need to know what to do if a dog gets injured or gets into a fight.
I charge £10 per hour for group walks, £12 for solo ones. I offer drop-in services for older dogs, cats and other small animals and I'm just about to add care for horses on top (mucking out, putting them out into fields/back into stables, as well as riding them out if the owner wishes).
Back to your questions - a license for providing daycare will set you back more than £25 - especially if you don't have any experience or qualifications - most councils charge around £300 per year for a boarding/daycare license. Where did you get the £25 figure from, out of curiosity?
The IMDT have a good checklist here:
www.imdt.uk.com/articles/dog-boarding-licence-regulations/
What will the licensing authority look for? The inspectors look for a number of things including (but not limited to)
- Accurate record keeping and up to date information on the dogs you are looking after
- Proper safety and hygiene in sleeping spaces, play spaces and around the dogs’ food.
- Adequate space for dogs to relax, play and eat
- A sensible ratio of carers to dogs
- The right level of training and supervision for any staff or helpers you may have
- Plenty of appropriate mental stimulation for the dogs
- A daily exercise routine that meets each dog’s individual needs
- Measures to prevent illness and injury.
- A plan for what to do in an emergency
- Being able to handle dogs appropriately and safely.
- Proper storage of food and medication
- Understanding how to administer prescribed medication
- How you store and dispose of waste
- Facilities to isolate dogs should they develop an infectious illness
- The qualifications of the business owner and anyone who will be caring for the dogs.
You will also need to consider costs of things like bedding, blankets, laundry, cleaning carpets/floors, toys, food bowls, chews and treats. Also things like how would you separate dogs during feeding, or what would you do if a fight broke out, or a dog resource guarded in your care and bit you or another dog?
It's not something I would consider as a novice and tbh it's very restrictive (much more so than walking) and your home takes a bit of a battering
I would also consider the impact it would have on your neighbours if you had a really loud/barky dog in your care all week.
Sorry it's so long - feel free to ask if you any further questions :)