The Watering Bowl: $180K to Build the Full-Bar Concept at an Austin Dog Park

Nathan: This might be the best side business ever. A chunk of land, a good fence, and some dog treats. The question is, how does a dog park make money? The answer: beer. Nathan: How much beer and alcohol will you sell in a good month? Leslie: In a good month, $20,000 to $25,000. With the full bar, you’re looking at $45,000 to $50,000 easy. Nathan: We’re about to meet the owner of The Watering Bowl in Austin, Texas. Leslie: I want to reframe, rebuild so we’d have that full bar inside. Nathan: What would that cost? Leslie: About $650,000. Nathan: If you do that, what will total revenue be in 2026? Leslie: About $900,000. Nathan: If her vision plus my capital can yield big results, I’ll cut a check on the spot. Nathan: Hey, I’m Nathan. Leslie: Hi, nice to meet you. I’m Leslie. Nathan: This is your baby, huh? What is this business? Leslie: It’s a dog park and bar. Combines a dog park, normally a free city amenity, with a bar and staff who watch the dogs. Nathan: What year did you officially open? Leslie: 2021. Nathan: In an average month, how much beer and alcohol will you sell? Leslie: $25,000. With the expansion, full bar, you’re looking at $45–$50K easy. Nathan: $25,000 a month from one container is shocking. If money wasn’t an issue, what would you build? Leslie: A full bar here and indoor seating. That helps with seasonal cash flow — when it’s very hot or cold people don’t come or stay as long. Leslie: We have the license to sell alcohol but right now it’s all cans because we don’t have the health permit. We’re on well and septic. The well would need to be permitted for public consumption. The septic tank is also very old, not up to code. Nathan: How much would it cost to replace the septic and well? Leslie: Starting at $100,000 for septic. Nathan: When you launched in 2021, was the bar the big revenue stream first? Leslie: 2022 was our first full year — just shy of half a million. Nathan: That’s incredible. Leslie: 60% beers and 40% dog park, on average. Nathan: How much did this place cost to open? Leslie: A quarter million. Nathan: Was that all your money? Leslie: Yes. I was employee number six at a startup before this. Got equity, grew to head of client success, the company was acquired in January 2021. Sold my house too. Plowed it all into the business. Nathan: Where did the $250K go? Leslie: A lot into renovating the building to make room for the bar. The fence was $24,000 all in. A few thousand into the splash pad. About $40,000 into the building behind us. About $10,000 to $12,000 on the patio. Nathan: Take us into 2023 and 2024. Leslie: 2023 dipped a little, came back up in 2024. 2024 was just shy of half a million again. 2025 is on track for about $450,000. Nathan: California sober trend? Leslie: A lot of people are doing the California sober thing. We started bringing on Delta-9 THC drinks — that’s helping. Nathan: How does the dog side make money? Leslie: Day pass: $12 first dog, $8 each additional. Monthly memberships: $35 first dog, $15 each additional. Nathan: What makes more, day passes or memberships? Leslie: Day passes — as long as people keep coming. Memberships stabilize revenue because they’re recurring whether or not customers come a lot. Nathan: How many memberships? Leslie: We fluctuate around 500 households. Nathan: Best month ever? Leslie: February 2023 — $33,000 in the bar plus about $20,000 in membership sales. Nathan: Talk to me about expansion. Leslie: I want to reframe, rebuild so we’d have a full indoor bar. Margins on cans are okay; tap and cocktails are much better. Indoor seating means people can stay longer and drink more. Nathan: Why not just cover the patio? Leslie: To enclose another building I’d need to pay the city for that, and we’d still need to spend $100,000 on septic and $15,000 on water. Nathan: Total project cost? Leslie: $650,000. The house itself takes at least $300,000. Nathan: How many full-time employees? Leslie: Six full-time, five part-time. Total payroll: $20,000 to $25,000 per month — about 40 to 45% of revenue. Nathan: What’s the right amount of capital for me to pitch you on? Leslie: $180,000 — that’s the down payment on the SBA loan for $650,000. They require 15 to 20% down. Nathan: Interest rate? Leslie: About 7%. Nathan: I’m a capitalist. I can’t compete with 7%. I’ll ask for a bigger return. Are you open to that? Leslie: I need money. All my money is right here. So yes. Nathan: If I came in with $180,000, would you prefer debt — like the SBA — or equity, where I’m buying a chunk? Leslie: Equity — then you’re just as invested as I am. Eventually I want multiple locations. Nathan: I know nothing about how dog parks trade. What would you value the business at? Leslie: With the full bar, $1.2M to $2M revenue annually. About $1 million valuation. Nathan: Two structures: $180K paid back at fixed interest, or $180K paid back as a percent of monthly revenue. Leslie: Revenue share. Nathan: Why? Leslie: I’ve always wanted to live below my means. You never know. Nathan: What percent could the business support today? Leslie: $1,000 to $2,000 a month — about 5% of monthly sales. Nathan: $180K, 5% of monthly sales until I’m paid back. How long until you’re at $70K to $90K a month? Leslie: Strategic plan: by May or June of next year, the full concept opens. Nathan: If you do that, what will 2026 revenue be? Leslie: About $900,000. Nathan: 2027 you should break a million. 5% of a million is $50,000 — pays me back fast on $180K. But that’s two years out. If it takes three to four years, I need a higher return. What total payback would be fair? Leslie: I’d be looking for no less than $20,000 of return. Nathan: That’s a 6% interest rate. That’s super low. Nathan: Let me make you an offer. $180,000 today. $20,000 a year of return. Just over 10% interest on $180,000. If it takes two years, $40K of return. Three years, $60K. Paid back as 5% of monthly revenue. I’ll never hurt your monthly cash flow. Leslie: If 20K is your goal per year, would we save 5% of revenue per month until 20K is hit, then start over the next year? Nathan: Good question. You’re asking — if I grow fast and pay you 20K in 6 months, can we cap it there? Yes. But then I want to cap my downside too. Personal guarantee on the downside. Are you open? Leslie: Yes, I’d be open to capping the 20K per year. Nathan: $180,000 until I’m paid back $240,000. Repaid 5% of monthly sales. If we grow fast together, you pay back quicker. If we hit roadblocks, you pay back slower. What do you think? Leslie: I think that’s very fair, especially for the mindset of helping the business grow. That’s a business partner strategy. Nathan: Lifetime membership for my Goldens when they’re in town? Leslie: Lifetime, yes. Nathan: I’m not changing my interest rate, though. Holding it. Nathan: Do we have a deal? Leslie: We’ve got a deal. Nathan: Let’s get in business. I’m excited for this. Now we get to play with dogs and have a beer. Nathan: If you guys liked that deal, remember, new episodes drop every Wednesday. Click here to subscribe so you don’t miss out. Also, want to see more deals like this one? Click here to see the next deal immediately.