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Writing a
Mobile Grooming Business Plan |
Starting a mobile
grooming business typically involves less cash outlay than a
commercial location. Most of the cash outlay is required for the
down payment on the mobile vehicle, but you need to have some cash
reserves while you grow the business adequate to cover your
expenses, and start-up expenses.
You do need to investigate licenses
carefully. Sometimes you need to get local approval from each city,
town or county you groom in the form of a license or permit. Also,
some housing associations may prohibit storing your vehicle in the
driveway of your neighborhood. Often these associations consider
commercial vehicles, especially those with custom lettering, to be
an unsightly disturbance to the other members of the neighborhood
association. Do
your homework for your business! You may be obligating yourself to a
significant loan financing your purchase of a new or used vehicle.
Protect your investment and ensure you clearly understand what your
business needs to earn to cover its operating expenses, and the
amount of net operating income (prior your salary or draw) it needs
to earn in order to provide you with a personal income from the
business income. The old saying, "It's not what you make, but what
you keep" that clearly describes your goal in preparing a sales
forecast and income and expense projection.
Some banks and auto financing firms
absolutely require a business plan before they make a loan. It's no
small task but perhaps the most important task to protect your
investment in your business. You will need to project your business
sales income for 3 to 5 years in advance from the day you open for
business (see graph above). Then you will need to project the
operating expenses and deduct them from your projected sales income
thereby giving you an estimate of what personal income you can
expect to earn from your business (see graph below). Going into
business in the dark without knowing what you can expect to earn in
sales and personal income is an unacceptable risks to banks or
investors, and for good reason.
Chart
generated by Pet Grooming
Business Plan Helper & Sampler,
a
Grooming Business in a Box®
product.
Copyright 2007-2012 Find A Groomer
Inc. All rights reserved
The chart above shows some
retail sales income. There are
mobile groomers that sell flea
and tick treatments, brushes,
combs, toys and treats. Holistic
food is also growing in
popularity. Many pet owners
desire the savings of buying the
bulk bags but have little or no
means of carrying the bag; the
mobile groomer can.
Chart
generated by Pet Grooming
Business Plan Helper & Sampler,
a
Grooming Business in a Box®
product.
Copyright 2007-2012 Find A Groomer
Inc. All rights reserved
How much do you need to
invest? That's another
question that must be
answered with financial
planning. Fortunately mobile
grooming businesses are
known for reasonable
start-up costs involving
cash outlay compared to a
commercial locations. You
don't have to deal with
leasehold improvements like
flooring, tiling, plumbing,
carpentry and electricity.
In some commercial locations
leasehold improvements can
cost as much or more than
the cost of a new van or
trailer.
The graph below shows the start-up
funding required for a mobile business purchasing a new van. The
business could be new or turning in an old van for a new one. The
mobile owner requires about $58,000 in "start-up assets" and $3,000
for start-up expenses. Every business owner learns basic financial
terms and you definitely need to know the difference between an
"asset" and "expense." In accounting and tax reporting your assets
and expenses are handled quite differently.
Suffice to say that assets for a mobile
grooming business is major equipment like the vehicle and its
contents. Start-up expenses are easy to understand. They have a
short lifetime and include grooming supplies, small tools and
equipment, advertising, stationery, licenses, and fees to name just
a few. Refer to the chart below once more.
We know the groomer requires $61,000 to
cover the purchases of assets and expenses, and some of that asset
amount should be cash reserved because you run a new a business at a
loss for several months until the clientele and demand increases.
The chart tells us that the groomer
plans to seek a loan (light yellow) of $48,000 and her investment of
her own money (light blue) will be $13,000.
Chart generated by Pet Grooming Business
Plan Helper & Sampler,
a Grooming Business in a Box® product.
Copyright 2007-2012 Find A Groomer Inc. All rights reserved
If you require a bank loan or investor
they are going to want to know exactly how much of an investment you
need and how much you are personally putting up of your own money.
Don't proceed without knowing the numbers, and have them
well-documented. You are certain to be asked for that documentation.
If you don't have it you will be perceived as being naive about the
conduct required to start-up a business. It's okay to be naive now,
but start learning more today.
There's another very common question
someone is likely to ask you. Again, don't venture into business
seeking loans or investors without knowing your projected "breakeven
point." Below you will find the breakeven table for the groomer
opening a home business above.
|
Break-even Analysis (Pet
Care Services Only) |
|
|
|
|
|
Monthly Units of Services
to Break-even |
46 |
|
Monthly Gross Sales of
Services to Break-even |
$2,142 |
|
|
|
|
Assumptions |
|
|
Estimated Monthly Fixed
Cost |
$2,142 |
|
Estimated Per Unit
Variable Cost |
$0.00 |
|
Year 1 Sales of Services |
$34,128 |
|
Year 1 Units of Services |
736 |
|
Average Per Unit of
Services Revenue |
$46.37 |
Table generated by Pet
Grooming Business Plan
Helper & Sampler,
a Grooming Business in a
Box® product.
Copyright 2007-2012 Find A
Groomer Inc. All rights
reserved
Do you understand the table information?
It's not too hard to figure it out once you know your projected
average service fee for grooming services you expect in your
business, and what your fixed costs are. Fixed costs can include
interest payments on your loans to start-up the business, supplies,
utilities etc.
In the example above the new business owner knows her
business requires $2,142 a month to meet its fixed costs of
operation. Because she knew her average grooming fee would be $46.37
it was easy to divide that number into the fixed costs of $2,142.
The result is 46 services. In other words, the mobile groomer must groom 46 pets a month to meet
costs of running the business. In this case, 46 pet services does
not include personal income for the mobile owner
(unless a small base salary was included in the in the $2,142 amount).
Impress others by sharing your
break-even point. Now consider this question. Isn't it easy to
count the number of pets you groom as you work through a month?
Sure. Knowing that you must groom at least 46 pets to meet
break-even is an easy way to track your progress at any time during
the month. You will be better prepared should you not meet your
goal, or to celebrate when you exceed your goal and start boosting
your profit.
Mobile Grooming Business Plan Software & Sample Plan
There's no simpler way to write a
professional mobile grooming business plan suitable to present to
banks than with Pet Grooming Business Plan Helper & Sampler. In
fact, one of the sample plans is a mobile groomer start-up plan for
Doorstep Mobile Grooming. No one else has ever released similar
information and tools customized to the needs of pet groomers. Take
a look at Grooming Business in a Box®.
Talk with Other Mobile Grooming Business
Owners We
suggest you come to the GroomerTALK Message Board and look for the
MobileGroomerTALK Forum. Study the many threads and forums. You are
also most welcome to register on the Message Board and start some
discussions, ask for help and make friends with mobile groomers and
others. Better yet, how about sharing your experiences with grooming
in order to help others.
See if you can locate a mobile groomer
willing to take you along with them on a working day. If not,
Jodi Murphy sells a
set of mobile grooming DVDs where you the viewer ride along with her
in on a typical mobile grooming day. That's what PetGroomer.com is
about, opening up lines of communication between groomers that is
still so sorely missing from our industry. |
