How To Start A Dog Grooming Business With No Money

Start a pet grooming business by following these 10 steps:

You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your pet grooming business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Check out our How to Start a Business page.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What are the startup and ongoing costs?
Who is your target market?
How much can you charge customers?
What will you name your business?

Luckily we have done a lot of this research for you.

What are the costs involved in opening a pet grooming business?

The costs of opening a pet grooming business can be particularly low if you are able to operate out of your own home or operate in a mobile fashion (such as visiting pet owners' homes or working with local kennels). Doing so eliminates most of the overhead associated with the business and reduces the start-up costs primarily to obtaining high-quality tools and advertising your services. The costs of the tools you will need (which include clippers, shears, slicker brush, blades, smock, and greyhound comb) can cost up to $1000. Additional grooming supplies (including shampoo, conditioner, nail clippers, safety supplies, hydraulic drier, and a grooming table) can cost a little over $1000. These represent the bare essentials for your business, and if you choose to specialize in certain services (such as the aforementioned pet facials), it will necessitate additional tools and supplies. Aside from this, you must invest in advertising your business; consider a minimum of $1000 for "traditional" advertising (including radio, print, and possibly television) to start with, along with social media and advertisement via your own website which are, aside from your time investment, free.

What are the ongoing expenses for a pet grooming business?

The beauty of a small grooming business is that its ongoing costs are very small. As mentioned above, operating out of your own home, a kennel or pet store, or simply traveling to customers' homes eliminates the need for costly rent and utilities. Your primary ongoing expenses are cleaning supplies and advertising. While the exact charge varies depending on how busy you are, it should take $100 or less each month to obtain a few gallons of shampoo/conditioner (this should cost twenty dollars or less per gallon and, for most pets, be good for about a hundred baths) and to replenish safety supplies and minor equipment. Beyond that, you are paying for ongoing advertisement, and you should probably spend less than five percent of projected annual profits on this; once you are established, much of your traffic will come from referrals, social media engagement, and networking within your community.

Who is the target market?

Arguably, the best clients for a pet grooming business are those who have had their pets for several years. This is because those whose pets are younger (and the owners themselves may also be younger) tend to be overprotective and nervous about leaving their animal in the care of others. Veteran pet owners are more experienced in the process of bringing their pet to the groomer, so they will often have fewer concerns about leaving their pet in your care.

How does a pet grooming business make money?

At the most basic level, a pet grooming business makes money by charging different charges for its various services. In this way, it is not too dissimilar from a regular salon. So, you would charge customers a fixed amount for a haircut on their pet, and another amount for things like baths, facials, and so on. This means that becoming more proficient at completing these services will translate to more money each month for your business.

How much can you charge customers?

A good "average" to keep in mind for a pet haircut is around fifty dollars, though it is wise to consider charging more for particularly large dogs, as those jobs tend to take longer. This price typically includes bathing the animal, clipping its nails, and cleaning its ears, though you may consider charging a lower amount for someone wanting these services separately without the haircut itself. For an average of about ten dollars, you may consider services such as brushing the animal's teeth, de-matting its fur, removing odors, and so on. You should also charge between ten and thirty dollars more to cut without clippers, and if your business involves traveling to the owner's home, it is proper to charge a convenience fee between ten and fifteen dollars more.

How much profit can a pet grooming business make?

Pet grooming is a potentially very profitable business, with some estimates saying that a successful business can bring in anywhere between $75,000 and $100,000 per year. While there are startup ideas with higher potential profits, the very low cost to start this business and the extremely low ongoing expenses mean that the vast majority of that income goes directly to your pocket.

How can you make your business more profitable?

Consider selling other items and services related to pets to make your grooming business more profitable. Some groomers have a sideline job of selling specialty pet tubs to owners who want to wash their pets themselves, for instance, while others make good extra money selling everything from unique animal toys to special animal treats. There is a market for everything from grooming equipment to animal clothing, and the more you can situate your business as a "one-stop-shop" for pet owners, the more potential customers you will have!

What will you name your business?

Choosing the right name is important and challenging. If you don't already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Pet Grooming Business Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

Your state's business records
Federal and state trademark records
Social media platforms
Web domain availability.

It's very important to secure your domain name before someone else does.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your pet grooming business is sued.

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can start an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.

Learn how to get an EIN in our What is an EIN guide or find your existing EIN using our EIN lookup guide.

Small Business Taxes

Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).

You can learn more about small business taxes in these guides:

LLC Taxes
Sole Proprietorship vs LLC
LLC vs Corporation
LLC vs S Corp
How to Start an S Corp

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.

Open a business bank account

This separates your personal assets from your company's assets, which is necessary for personal asset protection.
It also makes accounting and tax filing easier.

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Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.

Open net-30 accounts

When it comes to establishing your business credit, net-30 vendors are considered the way to go. The term "net-30," which is popular among vendors, refers to a business credit arrangement where the company pays the vendor within 30 days of receiving goods or services.

Net-30 credit terms are often used for businesses that need to obtain inventory quickly but do not have the cash on hand.

Besides establishing business relationships with vendors, net-30 credit accounts get reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.

Get a business credit card

This helps you separate personal and business expenses by putting your business' expenses all in one place.
It also builds your company's credit history, which can be useful to raise money and investment later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a pet grooming business business. Learn more about licensing requirements in your state by visiting SBA's reference to state licenses and permits.

Certain municipalities also require pet grooming licenses. For instance, Connecticut municipalities require such a license.

For more information about local licenses and permits:

Check with your town, city or county clerk's office
Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company's financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you're unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it's a great place to start for your business.

Learn more about General Liability Insurance.

Another notable insurance policy that many businesses need is Workers' Compensation Insurance. If your business will have employees, it's a good chance that your state will require you to carry Workers' Compensation Coverage.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a pet grooming business

As mentioned above, traditional advertising can work well, including radio ads and print ads. Television ads are also effective, but can sometimes be cost-prohibitive when you are starting out. Printing out business cards is an affordable and easy method of advertising your business, and if you already have a good relationship with local vets, kennels, and pet stores, you may be able to advertise your services there. Consider creating a professional webpage as well as a social media presence, both of which increase customer engagement long after you first establish them.

How to keep customers coming back

In addition to the aforementioned methods of advertisement, consider attracting customers by offering discounts and free services (say, a free haircut with a bath) in order to help establish your quality. Consider a rewards program that continues to offer some of those discounts and freebies to frequent customers and those who refer others to you. Also, consider holding pet-related events to draw community interest; these may include parties where customers can meet each other, enjoy snacks and drinks, and buy discounted products and services; as an added inducement, you can give a portion of the proceeds to local shelters and other animal rescue agencies.

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Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business.

While creating a website is an essential step, some may fear that it's out of their reach because they don't have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn't delay building your website:

All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don't need to hire a web developer or designer to create a website that you can be proud of.

Using our website building guides, the process will be simple and painless and shouldn't take you any longer than 2-3 hours to complete.

Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That's not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We've reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2021 to find the best phone service for your small business.

Recommended Business Phone Service: Nextiva

Nextiva is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.