Glossary
The Pet Business Glossary.
Plain-English definitions for the terms that come up running a pet care business, buying or selling one, using the app, or partnering with us. No jargon left unexplained.
106 terms across 4 categories, updated as new terms come up.
Playbook
Running the business.
The day-to-day vocabulary of structuring, insuring, pricing, and operating a pet care business.
39 terms, A-Z
1099 vs W-2
The two ways to pay workers: 1099 contractors handle their own taxes and set their own schedule, W-2 employees have taxes withheld and more employer control – and legal risk – over how they work. Learn more →
Background Check (Sitter Vetting)
A criminal history and identity check run on prospective sitters before they’re allowed to work with clients. Learn more →
Bonding (Employee/Business Bond)
A type of insurance that reimburses a client if an employee steals from them – a common trust signal in pet sitting marketing. Learn more →
Break-Even Point
The revenue level at which total costs equal total revenue – the point where a business stops losing money. Learn more →
Business License
Local or state permit required to legally operate a business in a given city or county. Learn more →
Cancellation Policy
The rules governing how far in advance a client must cancel a booking to avoid a fee. Learn more →
Care, Custody & Control Insurance
Specialized coverage for pet care businesses that protects against injury or harm to a pet while it’s in the sitter’s care. Learn more →
Cash Flow
The net amount of cash moving in and out of a business, which can differ significantly from profit on paper. Learn more →
Churn Rate
The percentage of clients who stop using a service over a given period – a key health metric for recurring-revenue businesses. Learn more →
Client Acquisition Cost (CAC)
The average amount spent on marketing and sales to win one new client. Learn more →
Customer Lifetime Value (CLV)
The total revenue a business can expect from a single client over the entire relationship. Learn more →
DBA (Doing Business As)
A registered trade name that lets a business operate under a name different from its legal owner name. Learn more →
Drop-In Visit
A short, scheduled visit to feed, walk, or check on a pet, typically 15-30 minutes. Learn more →
EIN (Employer Identification Number)
A federal tax ID number issued by the IRS, used to open business bank accounts, hire staff, and file business taxes. Learn more →
General Liability Insurance
Coverage that protects a pet business against claims of property damage or injury caused during normal business operations. Learn more →
Google Business Profile
A free listing that controls how a business appears in Google Search and Maps, including reviews and hours. Learn more →
Gross Margin
Revenue minus the direct cost of delivering a service, expressed as a percentage – shows how efficiently a business delivers its core service. Learn more →
Independent Contractor
A worker who controls how and when they complete the work, is not an employee, and is generally paid via 1099. Learn more →
Key Performance Indicator (KPI)
A specific, trackable metric used to measure whether a business is hitting its goals. Learn more →
LLC (Limited Liability Company)
A business structure that separates personal assets from business liabilities while keeping tax filing relatively simple. Learn more →
Local SEO
The practice of optimizing a business’s online presence to rank in local, geography-specific searches. Learn more →
Meet & Greet
A no-cost introductory visit between a sitter and a new client before booking begins, used to build trust and confirm fit. Learn more →
Net Profit Margin
What’s left of revenue after all expenses, including overhead and taxes, expressed as a percentage. Learn more →
Non-Compete Agreement
A contract clause restricting a former employee or business seller from starting a competing business within a certain area or time frame. Learn more →
Non-Disclosure Agreement (NDA)
A contract that prevents a party from sharing confidential business information, often used during partnership or sale discussions. Learn more →
Onboarding (Client)
The process of getting a new client set up – intake forms, pet profiles, service agreement, and first booking. Learn more →
Overhead Costs
Ongoing business expenses not directly tied to a specific job or client, like software subscriptions, insurance, and admin time. Learn more →
Overnight Stay (Pet Sitting)
A service where the sitter stays overnight in the client’s home, or the pet stays overnight with the sitter. Learn more →
Pet Care Certification (Pet CPR/First Aid)
A voluntary credential showing a sitter has training in basic pet first aid and emergency response. Learn more →
Profit & Loss Statement (P&L)
A financial report summarizing revenue, costs, and expenses over a specific period, used to see whether a business is actually profitable. Learn more →
Recurring Revenue
Predictable income from repeat clients or subscription-style bookings, as opposed to one-off jobs. Learn more →
Referral Program
A structured incentive – discount, credit, or cash – offered to clients or partners who bring in new business. Learn more →
Scope Creep
When a job gradually expands beyond what was originally agreed to, without a corresponding increase in price. Learn more →
Seasonal Demand
Predictable swings in booking volume tied to holidays, travel seasons, or school calendars. Learn more →
Service Area
The specific cities, zip codes, or neighborhoods a pet care business actively serves. Learn more →
Sole Proprietorship
The simplest business structure – one owner, no legal separation between the owner and the business, full personal liability. Learn more →
Standard Operating Procedure (SOP)
A documented, repeatable process for how a task should be done, used to keep quality consistent as a team grows. Learn more →
Terms of Service
The legal agreement a client accepts that spells out the rules, responsibilities, and limits of liability for using a service. Learn more →
Workers’ Compensation Insurance
Coverage required in most states once you have employees, paying for medical costs and lost wages if a worker is injured on the job. Learn more →
App
Using the software.
Terms that come up inside the app itself: scheduling, client tools, and the features behind OPERATE.
25 terms, A-Z
API Integration
A connection that lets the app share data automatically with another piece of software, like accounting or payroll tools. Learn more →
Automated Invoicing
Invoices generated and sent automatically based on completed bookings, without manual entry. Learn more →
Automated Reminders
Scheduled notifications sent to clients or sitters about upcoming bookings, payments due, or missing info. Learn more →
Client Intake Form
The initial form a new client fills out with contact info, pet details, and care instructions. Learn more →
Client Portal
A self-service login area where clients can book services, view visit reports, update pet info, and pay invoices. Learn more →
Digital Waiver
An electronically signed liability release or service agreement, replacing paper forms. Learn more →
GPS-Verified Visit
A visit that’s automatically time- and location-stamped to confirm the sitter was physically at the client’s address. Learn more →
Multi-Sitter Assignment
The ability to assign more than one sitter to a single client or household, useful for larger properties or backup coverage. Learn more →
Online Booking
A system that lets clients request and confirm services directly through a website or app, without a phone call. Learn more →
OPERATE vs GROW
OPERATE is the free, always-available side of the app covering day-to-day running of a pet business – scheduling, invoicing, client management. GROW is a separate, not-yet-messaged tier focused on expansion tools. Learn more →
Payment Processing
The system that handles collecting client payments, usually via card or bank transfer, inside the software. Learn more →
Payroll Integration
A connection between the scheduling system and payroll software so hours worked flow directly into pay calculations. Learn more →
Pet Profile
A stored record of a pet’s details – breed, medical needs, feeding schedule, behavior notes – used by sitters on every visit. Learn more →
Push Notifications
Automatic alerts sent to a phone or app about bookings, messages, or visit confirmations. Learn more →
Real-Time Tracking
Live location tracking during a walk or visit, viewable by the client as it happens. Learn more →
Recurring Booking
A booking that repeats on a set schedule – daily walks, weekly visits – without needing to be rebooked each time. Learn more →
Reporting Dashboard
A summary view of business metrics – bookings, revenue, client counts – pulled automatically from app data. Learn more →
Route Optimization
A feature that reorders a sitter’s stops to minimize driving time and distance between appointments. Learn more →
Scheduling Conflict Detection
A feature that automatically flags when a sitter is double-booked or unavailable for a requested time. Learn more →
Service Add-On
An optional extra offered alongside a core service, like nail trims or extra playtime, usually for an additional fee. Learn more →
Sitter Dashboard
The interface a sitter uses to see their schedule, client details, and job notes for the day. Learn more →
Two-Way Messaging
In-app chat between client and sitter (or business), keeping communication logged in one place instead of scattered texts. Learn more →
Visit Report
A written summary – often with photos – sent to a client after each visit, documenting what happened. Learn more →
Waitlist Management
A system for holding and notifying clients when a fully booked service slot opens up. Learn more →
White-Label App
Software that a business can rebrand as its own, hiding the original software provider’s name and branding. Learn more →
Buy & Sell
Buying or selling.
Valuation, deal structure, and due diligence vocabulary for anyone buying or selling a pet care business.
30 terms, A-Z
Add-Back (Financial)
A personal or one-time expense added back to earnings to show the business’s true profitability to a buyer. Learn more →
Asset Sale vs Stock Sale
Two ways to structure a sale: an asset sale transfers specific business assets (most common for small businesses), a stock sale transfers ownership of the entire legal entity. Learn more →
Asset-Light Business Model
A business that requires minimal physical assets or inventory to operate, common in service businesses like pet sitting. Learn more →
Book of Business
The full set of active clients and recurring revenue a business currently holds. Learn more →
Broker Fee / Commission
The percentage of the sale price a business broker earns for facilitating the transaction, typically 10-12% for small deals. Learn more →
Business Appraisal
A formal, professional valuation of a business, often required for financing or legal purposes. Learn more →
Buyer Financing (SBA Loan)
A Small Business Administration-backed loan commonly used by buyers to finance the purchase of a small business. Learn more →
Client Retention Rate
The percentage of clients who continue using a business over time – a major factor buyers weigh in valuation. Learn more →
Confidential Information Memorandum (CIM)
A detailed document prepared for serious buyers, covering financials, operations, and growth potential of the business for sale. Learn more →
Customer Concentration Risk
The risk a buyer sees when too much revenue depends on too few clients – a red flag in valuation. Learn more →
Deal Structure
The overall terms of how a sale is arranged – price, payment timing, financing, and any earnouts or holdbacks. Learn more →
Due Diligence
The buyer’s in-depth review of a business’s finances, contracts, and operations before finalizing a purchase. Learn more →
Earnout
A deal structure where part of the sale price is paid later, contingent on the business hitting agreed performance targets. Learn more →
EBITDA
Earnings before interest, taxes, depreciation, and amortization – a profitability measure more commonly used for larger businesses than SDE. Learn more →
Escrow
Funds held by a neutral third party until agreed-upon sale conditions are met. Learn more →
Exit Strategy
An owner’s plan for how they’ll eventually leave the business – sale, merger, succession, or wind-down. Learn more →
Franchise vs Independent Business
The distinction between buying into a branded franchise system with set rules and fees, versus buying a standalone independent business. Learn more →
Goodwill
The intangible value of a business beyond its physical assets – reputation, client relationships, and brand recognition. Learn more →
Letter of Intent (LOI)
A non-binding document outlining the proposed terms of a sale before a formal purchase agreement is drafted. Learn more →
Market Comparable (Comp)
A recently sold, similar business used as a reference point to estimate a fair asking price. Learn more →
Non-Compete Clause
A provision in a sale agreement preventing the seller from starting or joining a competing business nearby for a set period. Learn more →
Personal Guarantee
A commitment by the buyer to personally repay a loan if the business itself can’t, often required for SBA financing. Learn more →
Purchase Agreement
The final, binding legal contract that finalizes the terms and completes the sale of a business. Learn more →
Recurring Revenue Multiple
A valuation approach that weighs predictable, repeat-client revenue more heavily than one-off jobs. Learn more →
Roll-Up Acquisition
A strategy of buying and combining multiple smaller businesses in the same industry to build a larger, more valuable company. Learn more →
SDE (Seller’s Discretionary Earnings)
A business’s total financial benefit to a single full-time owner – profit plus the owner’s salary, benefits, and discretionary spending – the standard basis for valuing small pet care businesses. Learn more →
Seller Financing
An arrangement where the seller finances part of the purchase price, receiving payments from the buyer over time. Learn more →
Transition Period
The agreed timeframe after closing during which the seller helps the new owner take over operations and client relationships. Learn more →
Valuation Multiple
A number applied to a business’s earnings (like 2x or 3x SDE) to estimate what it’s worth. Learn more →
Working Capital Adjustment
A post-sale price adjustment to account for cash, receivables, or payables that differ from what was assumed at close. Learn more →
Partners
Working together.
The vocabulary of referral relationships, co-marketing, and partnership deals.
12 terms, A-Z
Affiliate Program
A formal system for tracking and paying commissions to partners who refer paying customers. Learn more →
Channel Partner
A third-party company that sells or distributes another company’s product or service as part of its own offering. Learn more →
Co-Marketing
A joint marketing effort between two businesses that share an audience, splitting costs and promotion. Learn more →
Cross-Promotion
Two businesses promoting each other to their respective audiences, usually at no direct cost. Learn more →
Lead Sharing Agreement
A formal arrangement defining how two businesses exchange potential customer leads with each other. Learn more →
Partner Portal
A dedicated login area where partners can track referrals, commissions, and shared resources. Learn more →
Partnership Agreement
A legal document outlining the terms, responsibilities, and profit-sharing of a business partnership. Learn more →
Referral Partner
A business or individual who sends new clients in exchange for a fee, credit, or reciprocal referrals. Learn more →
Strategic Partnership
A longer-term, mutually beneficial relationship between businesses built around shared goals rather than a single transaction. Learn more →
Vendor Partnership
A relationship with a supplier or service provider that supports business operations, sometimes with preferred pricing. Learn more →
White-Label Partnership
An arrangement where one company’s product or service is rebranded and resold under a partner’s own name. Learn more →