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It's a great avenue, if one if prepared.
I am a full-time dog sitter (among other things) and I offer both daycare as well as long stays.
Besides checking into your state's legislature regarding running such a business from home, the other thing you have to very carefully prepare is all your paper-work.
I come from a country where people are scared silly of signing something - anything! So what I did was to very carefully incorporate my application form together with a comprehensive background info list as well as any and all disclaimers needed along the way - and worded it in such a manner that owners are first made aware of the importance of the needed information, as well as the fact that there were set limitation to liabilities.
The other VERY important thing is to consider if one is prepared for such a venture: the risks involved, as well as the adjustments, and the high tendency of property being peed upon or destroyed is a reality, unless one is super selective about clientelle, limiting doggie day care as a viable means of income, unless you go into overnight and long stay as well...or one manages to secure a few select, very high paying owners.
There are actually quite a few other areas that need looking into if one were to set up a responsible as well as lucrative doggie day care centre. It ranges and depends on where you are, what you are able to do, what your limitations are, as well as ranging to include your ability to handle medical emergencies and 1st aid, grooming and the like, but I would think that one of the more important attributes would also be being able to identify, work with and handle dogs of different temperaments/personalities, especially dogs which could be possibly territorial, shy or aggressive. You'll never know how a dog would react, and temperament and behaviour does change in different environments...even day to day sometimes when in a different environment with all the different stimuli.
It IS best to be fully prepared.
Hope this helps.
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