Dog Grooming Business Plan
If you want to start a dog grooming business or expand your current business, you need a business plan.
The following dog grooming business plan template and example gives you the key components and details to include to write a winning pet grooming business plan.
Sample Dog Grooming Business Plan
Below is a dog grooming business plan example with each of the key sections to help you write a dog grooming business plan for your own company.
I. Executive Summary
Business Overview
[Company Name] is a licensed dog grooming salon in [Location]. We aim to provide excellent pet care at a very reasonable price. Because dogs are part of each home’s family, they deserve the best treatment available. We maintain a safe and dog-friendly environment that assures our clients that their pets are in good hands whenever they leave them at our salon. We position ourselves to be the leading dog grooming salon in the [Location] area with our vast space, high-quality equipment, premium products, specialized services, and professional pet caretakers.
Services offered
[Company Name] will focus on providing dog grooming services to moderate to wealthy residents as well as personalized services to other clients. These services will include in-home dog grooming service, day/overnight care, pet grooming, dog training, and specialized services done according to the specific request of the clients.
The founder, [Founder’s Name], will also develop proposals for dog grooming and caring specific to the needs of the clients and their pets. [Founder’s Name] will write newsletters to clients describing the best practices in dog grooming and answering frequently asked client questions.
Customer Focus
[Company Name] will primarily serve the residents within a 10-mile radius of our location. The demographics of these customers are as follows:
- 52,827 residents
- Average income of $94,700
- 89% married
- 55% in Management/Professional occupations
- 95% of residents are homeowners
- Median age: 39 years
In addition to this relatively wealthy adult demographic for a dog grooming salon, there are five large apartment buildings in the area. The residents of these apartment buildings may also require dog grooming services.
Management Team
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been in the pet care business for the past 15 years.
During this time he witnessed firsthand successes and failures in animal care operations and service quality, while developing deep expertise.
[Company name] will also employ an experienced assistant manager to manage admin operations. This will be an experienced operations manager who will be trained in handling the dog grooming salon most of the time. The desired individual will have an undergraduate business degree or years of office or clinic operations management experience. [Company name] will also employ certified dog trainers, experienced caretakers and an on-call veterinarian in case of medical emergencies.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- [Company Name] will fill a specific market niche in the growing community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to make use of our services when launched.
- Our location is in a high-wealth area where customers are in need of dog grooming services.
- The management team has a track record of success in the dog grooming services business.
- The local area is currently underserved and residents rely on independent dog caretakers.
Financial Highlights
[Company Name] is seeking a total funding of $92,000 of debt capital to open its dog grooming salon. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Dog grooming salon design/build: $46,000
- Working capital: $46,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Topline projections over the next five years are as follows:
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | |
|---|---|---|---|---|---|
| Revenue | $1,080,000 | $2,472,768 | $2,830,825 | $3,240,728 | $3,709,986 |
| Total Expenses | $962,000 | $1,539,107 | $1,719,742 | $1,901,321 | $2,112,641 |
| EBITDA | $118,000 | $933,661 | $1,111,082 | $1,339,407 | $1,597,344 |
| Depreciation | $25,600 | $25,600 | $25,600 | $25,600 | $25,600 |
| EBIT | $92,400 | $908,061 | $1,085,482 | $1,313,807 | $1,571,744 |
| Interest | $29,946 | $26,202 | $22,459 | $18,716 | $14,973 |
| Pre Tax Income | $62,455 | $881,858 | $1,063,023 | $1,295,091 | $1,556,772 |
| Income Tax Expense | $21,859 | $308,650 | $372,058 | $453,282 | $544,870 |
| Net Income | $40,595 | $573,208 | $690,965 | $841,809 | $1,011,902 |
| Number of locations | 1 | 1 | 1 | 1 | 1 |
| Average customers/day | 20 | 22 | 23 | 25 | 27 |
| Number of orders | 3,600 | 7,776 | 8,398 | 9,070 | 9,796 |
II. Company Overview
Who is [Company Name]?
[Company Name] is a licensed, all-around dog grooming salon in [Location] that provides excellent pet care at a very reasonable price. We believe that our dogs are part of our family and deserve the best treatment available in order for them to thrive. We maintain a safe and dog-friendly environment that assures our clients that their babies are in good hands whenever they leave them at our salon. With our vast space, high-quality equipment, premium products, specialized services, and professional pet caretakers, we position ourselves to be the leading dog grooming salon in the [Location] area.
We implement the highest standards by meeting our clients’ needs precisely and completely. By hiring professional veterinarians, certified pet caretakers, and experienced dog trainers, we are confident that our clients get the best value of the amount that they pay for.
[Company Name]’s History
Founded by [Founder’s Name] in [month, year], [Company Name] started as a home dog grooming service on weekends. [Founder] would be contacted by clients for their dog’s grooming, and he would either pay them a visit or schedule them to drop their pets by.
Driven by his passion for dogs, he decided to earn a certificate as a dog caretaker and trainer. With his years of experience in the medical field and as an assistant to a local veterinary clinic, he decided to start a dog grooming salon of his own.
Since incorporation, the [Company Name] has achieved the following milestones:
- Found salon space and signed Letter of Intent to lease it
- Developed the company’s name, logo and website located at [website]
- Determined equipment and fixture requirements
- Began recruiting key employees
[Company Name]’s Products/Services
[Founder’s Name] will be able to provide clients with the following services:
- In-home dog grooming service: Staff will go to clients’ homes by schedule to groom, feed, walk, or check on pets as often as requested.
- Day/Overnight care: Pets can be taken care of by the dog grooming salon staff for up to 24 hours with complete accommodation and care services. Each pet will be housed in separate kennels depending on the client’s request.
- Pet Grooming: On-site professional pet grooming services.
- Dog training: Certified dog trainers provide courses for the client’s pets specialized according to their needs.
- Special Requests: Provide service for pets with special needs including administering medication, assisting with recovery from surgery, handicaps, etc.
III. Industry Analysis
With revenue doubling over the past decade the Pet Grooming industry has proven to be one of the few established industries to post consistently strong gains over the past decade.
Demand for pet grooming is at an all-time high due to rising pet ownership, improved disposable income and changing consumer preferences regarding pet care. Industry revenue has grown at an annualized rate of 4.3% over the next five years. Pet parents have been purchasing a greater range of high-value services for their pets, contributing to industry revenue growth. Furthermore, industry operators have expanded their services to capture additional revenue. Pet groomers are increasingly providing luxuries, such as pet cologne. Pet boarders have also introduced deluxe hotel suites equipped with TVs, webcams for owners and training services, among other amenities.
Industry revenue is forecast to grow at an annualized rate over the next five years. Increasing pet ownership will likely increase demand for services and rising per capita income will likely enable more owners to be able to afford luxury services.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [company location] and the immediately surrounding areas in a 10-mile radius.
The area we serve is populated mostly by moderate to wealthy homeowners and lead busy lifestyles; as a result, they have both the need for dog grooming services and the means to pay for it.
The precise demographics of the town in which our location resides is as follows:
| Glendale | Highland | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
The Company will primarily target the following customer segments:
- Moderate to Wealthy Homeowners: The area in which the Company will operate has a significant population of homeowners. Many homes have dogs as their pets with limited time to keep up with pet grooming and cleaning. Even homes with one parent staying at home can have a need for regular dog grooming services or specialty services from time to time, especially when there are three or more children to care for.
- Wealthy Renters: Many wealthy singles and couples choose to hire dog grooming salons rather than to groom their pets on their own. These wealthy renters tend to work long hours at consulting companies, banks, and financial services and do not have the time or interest in grooming their pets regularly.
V. Competitive Analysis
Direct & Indirect Competitors
Doggie Dawg Spa
Doggie Dawg Spa is a pet grooming service that specializes in dog grooming. The facility uses all natural, organic bath products and provides treats for all pets. All services include bath, brush, ears, nails, anal glands and breath spray. Services offered include: Baths, haircuts, dematting, debunking, nail file and trim, blo-drying and styling.
Services range from $45-$65/pet
Splish Splash
Established in 2011, Splish Splash Grooming delivers a luxurious, stress-free grooming experience to pets, at the location of the customer’s choice. Splish Splash is equipped to provide a wide array of services, and is available on weekends, evenings, and some holidays. Because of space limitations, the company does not accommodate pets above 70 pounds.
Specific services and pricing are available by private consultation only.
K-9 Clippers
K-9 Clippers is a groomer with a goal to safely groom and pamper pets in a comfortable and stress-free environment. The spa offers a flexible schedule for its service area Services offered:
-
- – Basic – Massage, eyes cleaning, pad trimming, ears cleaning, anal glands, nail trimming, brushing & deshedding
-
- – Tidy Up Grooming – Feet and face trimming, belly shave, and sanitary.
-
- – Full-Service Grooming – Everything included in basic with Full clipping/styling
-
- – Cats – Bath and/or shave with nail trimming
- – Optional Add-Ons: Full Deshedding Treatment, Nail Polish and Hair Color
Services range from $40-$85/pet
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Client-oriented service: [Company Name] will have a full-time sales manager to keep in contact with clients and answer their everyday questions. [Founder’s Name] will keep in touch with clients through a monthly newsletter with promotions and industry news.
- Management: [Founder’s Name] has been extremely successful working in the dog grooming services business and will be able to use his previous experience to assure clients of the care that [Company Name] will take to do the job right. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name’s] competitors.
- Relationships: Having lived in the community for 25 years, [Founder’s Name] knows many of the local leaders, newspapers and other influences. Furthermore, he will be able to draw from his ties to homeowners from his work at the veterinary clinic to develop an initial client base.
VI. Marketing Plan
The [Company Name] Brand
The [Company name] brand will focus on the Company’s unique value proposition:
- Client-focused dog grooming services, that treat each pet individually with excellent care
- Service built on long-term relationships
- Proven track record of past, successful dog grooming businesses
Promotions Strategy
Referrals
[Company Name] understands that the best promotion comes from satisfied customers. The Company will encourage its clients to refer their friends and neighbors by providing discounts for new client produced. This strategy will increase in effectiveness after the business has already been established.
Internet
[Company Name] will invest resources in two forms of geographically-focused internet promotion—organic search engine optimization and pay-per-click advertising. The Company will develop its website in such a manner as to direct as much traffic from search engines as possible. Additionally, it will use highly-focused, specific keywords to draw traffic to its website, where potential clients will find a content-rich site that presents [Company Name] as the trustworthy, well-qualified dog grooming salon that it is.
Publications
[Company name] will place print advertisements in key local publications, including newspapers, area magazines, and local sport programs. Additionally, the Company will print brochures and place them in specific locations frequented by target individuals, such as supermarkets and real estate offices.
Pricing Strategy
[Company Name]’s pricing will be competitive compared with [Competitor] and lower than [Other competitor], although higher than independent pet groomers. For regular, weekly clients, pricing will be based on the average labor needed for a job and a steady fee will be set. For one-time clients, or clients who are trying out the firm’s services, a competitive hourly rate will be charged.
VII. Operations Plan
[Company Name] will carry out its sales operations through the internet and phone calls. Dog grooming services will be scheduled within time ranges (i.e. 10 am – 4 pm Wednesday) rather than at exact times to allow leeway for jobs that may be longer or shorter than expected. After clients are served a number of times, appointments will be scheduled more tightly together based on the average service time for each client.
[Founder’s Name] will work as the primary salesperson for the company’s services, although the assistant manager and administrative assistant may be trained in sales activities over time. The assistant manager will manage company operations, under [Founder’s Name]’s supervision. The administrative assistant will handle basic scheduling work for the assistant manager, as well as light bookkeeping, answering phones, and organizing human resources.
Milestones
[Company Name]’s long term goal is to become the highest quality provider of dog grooming services in the [city] area. We seek to do this by ensuring customer satisfaction and developing a loyal and successful clientele.
The following are a series of steps that will lead to this long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Launch [Company Name] |
| [Date 5] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been in the pet care business for the past 15 years. He has spent much of his career working with a local veterinary clinic, where he assists in all the clinic’s operations. During this time he witnessed firsthand successes and failures in animal care operations and service quality, while developing deep expertise.
[Company name] will also employ an experienced assistant manager to manage admin operations. This will be an experienced operations manager who will be trained in handling the dog grooming salon most of the time. The desired individual will have an undergraduate business degree or years of office or clinic operations management experience. [Company name] will also employ certified dog trainers, experienced caretakers and an on-call veterinarian in case of medical emergencies.
Hiring Plan
In order to launch the business we will hire the following employees:
- Pet groomers: 9 full-time, experienced groomers. Must be well-rounded on animal care with previous experience. Caretakers will be added consistently to fill the growing need for [Company Name] services.
- Administrative Assistant: Must be organized, with good phone skills, facility with numbers for bookkeeping, and good writing skills.
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from dog grooming services including baths, nail trimming, deshedding and other spa services.
As with most services, labor expenses are the key cost drivers. Pet caretakers and dog trainers will earn a competitive salary, allowing [Company Name] to hire workers who have a reliable experience. Furthermore, the costs of supplies are expected to be roughly 20% of revenue.
The major cost drivers for the company’s operation will consist of salaries, cost of supplies and the location lease. Ongoing marketing expenditures are also notable cost drivers for [Company Name].
Capital Requirements and Use of Funds
[Company Name] is seeking a total funding of $92,000 of debt capital to open its dog grooming salon. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Dog grooming salon design/build: $46,000
- Working capital: $46,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model.
| Number of customers per day | |
|---|---|
| FY 1 | 75 |
| FY 2 | 100 |
| FY 3 | 125 |
| FY 4 | 150 |
| FY 5 | 175 |
| Annual Lease (per location) | $50,000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
