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How to Start a Pet Grooming Business

How to Start a Pet Grooming Business

Are you a pet groomer or animal lover considering starting your own business?  Owning and operating a pet grooming service might be for you if you enjoy working with animals, have an eye for beauty, and work like a dog to make customers happy.  The Pet Grooming industry is a fast-growing field with low start-up costs that can allow you to do work you love while enjoying the autonomy of business ownership.

Business Overview

Pet grooming is a physically demanding job that requires you to be on your feet for several hours of the day and being in a loud environment with barking dogs and dryers running.  You must also be physically able to handle animals throughout the grooming session safely.  To turn a profit, you must be able to schedule your sessions, so you are generating the maximum amount of revenue during each business day.  As a result, if your business is healthy, you will consistently conduct a large volume of sessions each day.  It’s important to consider any health conditions you may have and if this work is best for you. If desired, you can find grooming station accessories that reduce physical stress, like padded foam standing mats.

It may sound like fun to be around pets all day; however, the daily pressures can be taxing.  Most new grooming businesses start with the owner not only providing the grooming services but also all the business aspects like marketing, bookkeeping, etc.  Before making the leap, consider volunteering for a shop (preferably outside of your target area) or working for a groomer before making the leap to make sure this is something you want to do long-term.

Industry Trends

The pet grooming industry is at an all-time high thanks to the health of the economy, increasing pet ownership rates, and a shift in consumer behavior regarding pet care.  The US Pet Ownership & Demographic Sourcebook cites that over 60% of pet owners consider their pets to be family members.  The growth in industry revenue supports this finding as more pet owners are spending disposable income on premium pet services.  Industry revenue has posted consistent gains over the past decade and outpaced the economy average as of 2018.

While research shows that rural areas see a greater percentage of households with one or more pets as opposed to urban areas, you must also consider the per capita income and the total number of households.  For example, if you live in a rural area with a large percentage of pet ownership but a small population and a low per capita income, it may be difficult to find enough prospective clients who are willing and able to pay for pet services.

According to a Forbes article, almost 85 million U.S. households have a pet, and within the last 30 years, pet ownership has gone from 56% to 68% of all households.

Because of the increased demand for pet services and the low barrier of entry into the field, competition within the industry is also at an all-time high. Preparing a well-thought-out business plan that includes cost-effective marketing strategies is important for the long-term success of your business.

 

Industry Trends

Because of the growth of the overall pet industry, the number of pet grooming and boarding enterprises has grown drastically over the past five to ten years.  You will probably find your local competition to comprise corporate franchises like PetSmart, privately owned facilities that offer all pet services (like boarding, daycare, training, and grooming), and other privately owned grooming specialist services.

While corporations have the advantage of a large marketing and advertising budget, evolving consumer preferences are moving towards boutique services that feel more luxurious than a big-box brand.  One of the biggest advantages of owning a small business is having complete control over the quality of service your business offers and creating valuable working relationships with your clients.

Target Market

The primary target demographic for a pet grooming business is pet owners between 30 and 64.  Pew Research Center found that 40% of 30 to 49-year-olds owned pets and had the second-highest annual pet expenditure, just shy of the 57% of 50 to 64-year-olds who own pets.

According to American Pet Products, Millennials are the largest demographic owning pets, and this generation pays more on their pets for quality products and services than other demographics.

Checklist for Starting a Pet Grooming Business

If you’re thinking about starting your own pet grooming business, there are a few things you should keep in mind. Here is a checklist of the essentials to get started.

Step 1: Write a Business Plan

After coming up with an idea, the next step in starting any business should be to write a business plan.  Not only will a bank require you to have one, but multiple studies have shown that a business plan helps increase the odds of starting a successful business. A properly used business plan will serve the entrepreneur as the road map for their business, helping them achieve their business goals.

Related: How to write a business plan

Step 2: Form a Business Entity

A business entity (also referred to as a business structure) refers to how a business is legally organized to operate. There are four primary business structures to choose from, which include the sole proprietorship, partnership, corporation, and Limited Liability Company (LLC). Each type of entity has its own pros and cons, such as liability exposure, costs, and administrative requirements.

When deciding on which business entity is best for a pet grooming business, it normally comes down to the sole proprietorship and Limited Liability Company.

A partnership opens the owners up to unnecessary personal liability because if a partner does something to get the business sued, or runs off with cash from the business, the other partners are personally liable to repay.
 
The corporation can be a good choice to minimize liability risk because it separates the business assets from the owner’s assets. If the corporation is sued or certain business debts can’t be paid back, the owners aren’t personally responsible to repay them. The downside to the corporation is that it is more complicated than all the other entities and requires more administration than the LLC. If you plan on raising a lot of investment though, the corporation is usually the better choice.

That leaves the sole proprietorship and LLC.

The sole proprietorship is the least expensive and easiest entity to start which is appealing. The downside is that the owner is personally liable should anything happen to the business, which is an important consideration. The LLC offers the ability to operate as a sole proprietorship with the liability protection of a corporation. Depending on the state, the cost to form an LLC runs from $40 – $500, which is pretty inexpensive for protecting the owners from business-related lawsuits and certain debts.

Related: Guide to forming your LLC
 

Forming an LLC sounds complicated and expensive, but using an entity formation service guides you through the process so you know it was done right.


Some popular LLC formation services include:


IncFile - $0 plus state fees & free registered agent for 1 year!

IncAuthority - $0 plus state fees & free registered agent the first year!

ZenBusiness - $49 plus state fees & free registered agent for 1 year!

Step 3: Name the Business

Finding the perfect business name can be challenging. Not only does the name have to resonate with your customers, but it also has to be available to use.

Related: Tips and ideas for naming a grooming business

Step 4: Select your Location

While most grooming shops don’t necessarily require a prime, high-traffic location storefront, it is usually important to be located close to where people traveling to and from work can easily get to your location.  Also, since you are working with animals that will sometimes be noisy, be sure to check zoning and covenants in case you have a neighbor that doesn’t approve.

The type of pet grooming business you start will probably be the biggest factor affecting your facility’s cost.  The most cost-effective option is to operate out of your own home.  While this saves the cost of renting or purchasing a building and is often a good choice when getting started, it may limit the scale and image of the business.  Hiring additional groomers to expand your business may not be an option if you are a home-based business as well.  Be sure to verify whether you can operate a business from your home if you plan to be home-based.

The second option is to rent or purchase a brick-and-mortar building to operate the business.  The cost per square foot varies depending on the area’s affluence, proximity to traffic, and demand for properties, among other factors.  You want to choose a location convenient for pet owners to drop off and pick up their pets while not spending too much on rent or mortgage payments.  The size of the building should be appropriate to allow for future plans for the business.

Pet grooming businesses have very distinct spatial needs, and the building must be able to accommodate those areas.  An effective floor plan design for a grooming business will typically contain four main spaces: a receiving lobby, a pet holding area, a bathing and drying room, and a styling and grooming room.

The third option is to take your pet grooming business on the road.  Mobile dog grooming has grown in popularity in recent years thanks to the convenience it provides pet owners and the freedom for the business owner.  Used and refurbished vans or trailers are fairly easy to find, making this option cost-effective compared to a building.  The most common issue mobile groomers face is failing equipment, like the vehicle or power generator.  When going mobile, be sure to have one or more backup plans if this happens so that customers won’t be inconvenienced.  Another pitfall to a mobile pet grooming business is running the risk of wasting valuable time and fuel traveling between clients.  This can be avoided by keeping an efficient appointment schedule that limits travel distance each day.

Related: Choosing a business location

Step 5: Register for Business Licenses and Permits

While there is no business licensing exclusive to groomers, there are some general business registrations that may be needed, which include a business license, sales tax permit, Employer Identification Number, and Occupancy Permit.

Even though there is no licensing required to provide grooming services, being certified may be worth looking into.  Completing an accredited educational program provides not only proof that you have received professional training, but it will provide the necessary skills to conduct a professional service-based business.  Customers will be very demanding of their pet’s care and appearance, and while you can learn how to groom on your own, a program will get you up to speed much faster.

There are several options for getting a pet grooming certification, with many organizations offering both online and in-person programs of study.  While there is currently no industry oversight or legal requirement to be certified, you should consider completing a certification course prior to engaging in business for the sake of credibility and offering the highest quality services possible.  And as with all skilled trades, continuing your education by periodically attending courses is a good way to stay on top of the industry trends and keep ahead of your local competition.

Related: Common business licenses, permits, and registrations by state

Step 6: Find Financing

Coming up with a good business idea and having the skills to run it are one thing, but getting the funding to start a grooming business is another.  Fortunately, the cost to start a new grooming business is relatively low; however, getting the funding to start can be difficult.  Banks are typically going to want the borrower to have good credit and personally invest 15-25% towards the total start-up costs.

Related: Finding the money to start a business

Step 7: Open a Business Bank Account

Keeping your small business and personal finances in separate bank accounts is important to track the income and expenses of your business and identify trends.
 
Many banks offer free business checking accounts, so be sure to find a cost-effective option for your business.

Step 8: Get your Marketing Ready

With the increase in the number of competitors comes a need for effective marketing and advertising.  Marketing efforts don’t have to be expensive to be effective.  The most effective form of marketing is by generating word-of-mouth referrals.  According to a 2016 study conducted by Nielsen, 82% of consumers seek a personal recommendation before making a purchase, and 92% of consumers trust a personal recommendation over any other form of advertising.  Creating a referral rewards system is a great way to ensure client loyalty and attract new clients.

Another marketing tactic for pet groomers is to network with local veterinarians and pet service professionals who do not offer to groom.  Over time, those relationships could lead to your business being the professional recommendation of those established business owners.

You can also leverage the power of social media to gain brand name exposure.  Using Instagram and Facebook’s targeted advertisement platform can allow you to create ads that reach pet owners within a certain distance of your business.  This is a great opportunity to run a limited-time offer and to promote it online, reaching even more pet owners who may not know of your service offerings.

Related: Low-cost ideas to market a new business

Every business is going to need a logo. Make a professional logo in no time with the free logo makers from BrandCrowd and Canva.

Step 9: Obtain Business Insurance

Groomers operating out of a shop will likely want general liability insurance to protect them from a customer slipping and falling or from a bite.  Mobile groomers will likely need to get a policy as most personal auto insurance policies don’t cover commercial activity.

Related: What types of insurance does a pet grooming business need?

Step 10: Hire Employees

For entrepreneurs wanting to grow a pet grooming business larger than what they can do by themselves, hiring employees will be necessary.  As more competitors enter the market, finding and hiring skilled workers who will maintain the business’s quality of service and reputation is an important factor in ongoing success.  This results in needing to pay higher wages for skilled groomers.  Minimum wage will apply to the front-line employees working at the front desk and answering phones.

Related: Hiring your first employee

Step 11: Set up an Accounting System

Setting up an accounting system is critical to the long-term success of your business.

Staying on top of taxes not only keeps the business out of trouble with the government, but the numbers can be used to track and monitor trends and cash flow in the business and maximize profits.

Related: Setting up the accounting for your business

The thought of accounting can be intimidating for a lot of new entrepreneurs. There are a number of ways of handling bookkeeping, from DIY to hiring a bookkeeper. These include:

- Pen and paper - Low expense, but difficult to track.
- Spreadsheet - Low expense, but easy to make errors.
- Accounting software - Medium expense, but owner typically inputs expenses. Some great accounting software programs include Freshbooks or Wave Accounting.
- Hire a bookkeeper - Higher expense, though very affordable at $100-$200 per month in most cases. A dedicated bookkeeper will probably save money because, in addition to handling all of the bookkeeping (so you can focus on the business), they also provide personalized tax advice and ensure the business is in compliance.

Find bookkeepers in your local area or use a service like 800Accountant.

How much does it cost to start a pet grooming business?

The cost of starting a pet grooming business depends on your business model.  Whether you choose a brick-and-mortar business, an at-home business, or a mobile business will affect your start-up costs.

Aside from the location, every grooming business needs basic equipment and supplies.  Basic supplies include clippers, shears, scissors, sprays, shampoo, conditioner, brushes, dryers, nail clippers, bandanas, bows, and cleaning supplies.  Equipment needs include a professional grooming table, tables, crates, washing machine, and dryer.  If you sell retail, you will also have to factor in inventory costs.

Provided the cost to renovate and furnish the location is minimal, it is feasible to start a pet grooming business for $2,000-$3,000.

How much can a pet grooming business owner make?

The earning potential for a grooming business depends on a multitude of factors, including the location of the business, the average per capita income of your market, the population density of your area, competition, and overhead costs.  SBDCNet found that on average, brick-and-mortar grooming services charged $36 per session whereas mobile services charged the premium fee of $51 per session.

You can limit your overhead to increase your profit margins but must be cognizant of the impact that your financial decisions will have on the quality of your services.  For example, understaffing to cut labor costs may cause poor customer service experiences for your clients.  You can maximize your revenue potential by either selling retail or offering a wider variety of services that require little additional overhead.  Offering a dog walking service would increase your revenue while not requiring additional real estate space or inventory costs.  The only additional cost for this service would be the compensation for the employee who walks the dogs.

If the only revenue source is grooming, you may miss out on additional profits.  Customers will be interested in purchasing shampoos, perfumes, and flea & tick prevention to use in between appointments.  Treats, supplements, and other products to improve the pet’s coats and health will be in demand as well, and they will look to you as the expert.

What experience is needed to run a dog grooming business?

There is no industry oversight requiring certification or education, but as pets are considered family, completing an accredited certification program before starting your business may help establish credibility. It can also be beneficial to have experience in the safe handling of pets in a grooming setting before accepting clients.  Getting your pet first aid and CPR certification through organizations like the American Red Cross can protect you and the pets you service in case of an emergency.

Are there grants to start a pet grooming business?

It’s extremely rare to find a grant to start a pet grooming business. If you search for business grants, you will come across a lot of scams and misinformation. Occasionally an organization will offer grants to start a business, however, be skeptical and don’t provide any sensitive personal information or pay money to get more information.

Legitimate federal grants can be found at Grants.gov, and you can check on your state’s economic development office to see if they have any grants available.

What is the NAICS code for a pet grooming business?

The NAICS code for a pet grooming business is 812910.

The NAICS code (North American Industry Classification System) is a federal system to classify different types of businesses for the collection and reporting of statistical data.

Related: What is a NAICS code?

Resources

Groomer to Groomer
Grooming Business
National Cat Groomers Institute
National Dog Groomers Association of America
Pet Business

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