Self-Employment Requirements
Some career seekers acquire their grooming education and jump into self-employment right away. Others get more experience through employment and later become self-employed if so inclined. Certainly not all people are suited to being a business owner. The hours are longer, and you don’t go home and forget your business. You are the business.
Pet Groomers Do Write Business Plans
Every business needs a business plan if it is to grow and prosper. Without a sound business plan backed by an effective management system, a business cannot survive, let alone make substantial profits. A business plan is so important your banker will require one before giving you a loan to open your pet grooming business. Though you have the total collateral required to back a business loan, your banker will almost certainly require a business plan. The bank wants you to be successful, and not to foreclose on your collateral and business. What do they know then? Success is derived from advance planning (having a business plan), and the management team managing the business plan.
It’s unfortunate most pet grooming business owners fail to write a business when establishing or expanding their businesses. However, the number of owners writing plans has dramatically increased since 2000. In fact, one of the services provided by the founders of PetGroomer.com is business plan writing services, and now our do-it-yourself book and software to write professional pet care plans, Pet Grooming Business Plan Helper & Sampler, part of the Grooming Business in a Box® series.
Most owners write a business plan to meet bank or investor requirements. Businesses that have accurate plans are more likely to prosper. Just what is this important document for groomers? This section will introduce you to business plans, and for those familiar with them, you will gain some keen insights into the task of writing plans for pet care operations.
Even if you do not need a business plan to apply for a business loan to open or expand your pet grooming business, having one is a tremendously helpful tool for success. We strongly encourage you to obtain or write a business plan not because a bank requires one, but because you understand the benefits of having one.
Introduction to Types of Grooming Businesses
In the BUSINESS category of this web site there are articles on the following businesses and their business plans:
- Salon/Shop
- Home-Based
- Mobile
- Self-Service
- Boutique with Grooming
Creating a business plan forces you to think ahead, and plot a strategy to build and expand your pet grooming business in detailed stages. Instead of proceeding haphazardly without a map you have a compass and guide to a well-planned course. Should seas get rough or out-of-hand, go back and refer to the compass that is your business plan and steady your accurate course once again. It is not uncommon for pet grooming business owners to lose their heading. Sometimes mature businesses stop growing because they have gone off course and problems arise, one after another. A well-written business plan anticipates problems before they happen.
Business plans should describe stages of development and measurable goals for 3 to 5 years in the future. These milestones are usually stated in numbers. For example, by the end of Year 2 in business a grooming business plan might state:
- We will have 250 regular clients.
- The average appointment frequency between grooming appointments will be 6 weeks.
- My average service fee will be $39.00.
- The business will earn approximately $78,000 gross revenue from sales of grooming services.
- The business loan will be 40% repaid.
Many groomers readily admit they don’t have the skills or experience to write a professional business plan. They can hire someone to write one, and in fact the creators of PetGroomer.com wrote hundreds of plans for groomers. Over 95% were funded. Having someone write a plan for you will cost $2,500 to $5,000. Today Find A Groomer Inc. offers Pet Grooming Business Plan Helper & Sampler. By reading the workbook and using the files on a CD-ROM any groomer with basic computer skills can write a professional plan with little or no assistance. It even provides leads for professional assistance at no charge when required, as well as sources of funding. In less than a month you can have a professional business plan. By the way the workbook includes 7 real grooming business plans, and no other product offers this exclusive feature.
7 Benefits of Grooming Business Plans
You clarify your vision in great detail. You discover what you hadn’t thought out adequately. The burden of uncertainties that cause stress is lifted.
You know how much cash and financing is necessary for your start-up or purchase of an existing business.
You know exactly when and how you will market and advertise your business. You will have researched your market area to define it and understand what areas have the most pet owners. You can then better allocate your spending.
You have a good idea when your business will grow to breakeven.
You are ready for client relations including your procedures for intake, outtake, telephone duties and forms.
You are ready to keep better records, appointment scheduling and organize bookkeeping.
You have a sales forecast for up to 5 years and better understand the required expenses to meet the demand for services.
At this point in your career studies we only want you to know that pet groomers do write business plans. Their numbers are growing, but you may not readily meet one. Times are changing. It only makes sense write one when you consider how much you are investing in your dream. There is an excellent reason why banks and investors require business plans before making loans or investing. It test s your business acumen because every successful businessperson in any trade knows the solid value of writing a business plan and using it as map to build their business.
If you cannot explain the return on investment of your business plan for investors, or the use of borrowed funds and profit/loss expectations to a banker, you will appear questionable as a businessperson. Groomers are not exempt from the benefits derived from writing plans.
Unfortunately most self-employed groomers have focused the vast majority of their training in the art of grooming. They forgot or overlooked equivalent training in grooming business management and that is where you cut the head off of “groomer burnout” and instead prosper and stay in love with your grooming business and working lifestyle. You can only gain from writing a grooming business plan, and separate yourself from the pack of other business owners.
Pet Grooming Franchises
This page has presented just a slight amount of information about self-employed options. One of the benefits of a franchise is having a helping hand just a call away. There are articles at this web site on franchises under the BUSINESS category.
Typical Startup Costs for Grooming Businesses
Figure Yours with Free Outfit a Grooming Business Planners
Home: Garage conversions run $5,000 to $15,000 depending upon how much contractor help you have to hire. If you are able to D.I.Y. most of the construction work your investment is on the lower end.
Mobile: $3,000 to $10,000 above the costs of the mobile vehicle.
Shop or Salon in Commercial Location: Shoestring budget startups range from $15,000 to $50,000. Does not include purchase of real estate, rent or lease basis. The more construction work you do lowers costs. Remember, these are shoestring budgets, deluxe salons easily run $100,000 or more.
Self-service: Same range as shoestring shops and salons with leasehold improvements the prime variable.
Housecall (no mobile conversion vehicle): $1,000 to $3,000.
There are many forms of companies. Which ones is right for you? Let’s take a look at your options next.
