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Mobile Groomer Headquarters - Page 2
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Mobile
Grooming Business Plans
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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 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 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 that the groomer
required $61,000 to cover the
purchases of assets and
expenses, and some of that
asset amount may 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 Find A Groomer
Inc. All rights reserved
Remember if
you need a 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 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; the groomer must
groom 46 pets a month to meet
the required bills, and that
doesn't include any personal
income for her (unless she
included a small base salary
in the $2,142 amount). You
will impress others if you can
share your break-even point,
and think about 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
& Samples
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 Home
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. That's what
PetGroomer.com is about, opening
up lines of communication
between groomers that is still
so sorely missing from our
industry.
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