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The industry’s
highest annual incomes are derived from large
businesses with employees. We have
consultation clients with 10 to 25 employees,
and some own major pet centers. They often buy
their own commercial property too. It isn’t a
given, but personal incomes (before taxes)
exceed $100,000 a year and more. Remember,
self-employment with a small or large business
is no guarantee of earning an income greater
than employment. Mobile groomers account for
the large number of self-employed groomers
without employees. The out- of-pocket cash
required to start a mobile grooming business
is relatively low when compared to opening a
new salon or shop in a shopping center. Many
mobile owners enjoy not having to hire and
supervise employees. Mobile grooming surveys
have shown the average income for a full-time,
five day a week, mobile grooming business
owner is typically $25,000 to $40,000 a year
after deducting operating expenses.
Home-based grooming businesses account for
another large number of one person grooming
businesses. However, a growing number of them
hire part-time bathers all or part of the year
depending upon demand.
Many groomers misrepresent
their self-employment income. You are likely
to hear errant figures when you ask groomers
about their self-employment, and they are
willing to share. When you ask a business
owner, “How much did you earn last year?” you
really don’t know if their answer is the gross
sales of services and retail, or are they
telling you what their personal income was
from their business. Have you
heard the saying, “It’s not what you earn,
it’s what you keep!”? Let’s look at an
example. A business owner sells $60,000 worth
of grooming services in one year before
deducting operating expenses (rent, utilities,
supplies etc). What is leftover is known as
the “net operating income.” Unless the owner
also took a salary or draw accounted for in
the operating expenses, the net operating
alone is the true personal income of the
business owner (prior taxes).
 Countless times we’ve heard self-employed
business owners state gross sales to others as
if it was their personal income from the
business. This issue becomes critical when you
are considering the purchase an existing
grooming business. State your questions in a
more specific manner. Ask, “What were the
gross sales of the business last year?” and
“What was the net operating income of the
business last year.” We know
there are some readers of this report already
making significant incomes. Most are willing
to take a temporary reduction to enter the
industry, but they are not willing to stretch
that out for more than two to three years.
Point blank they ask us, “Can I make a
six-figure personal income in pet grooming.”
Yes it is possible. Many of these career
seekers talk to grooming business owners and
are given both good and bad information when
it gets to finance. Why? Today, the average
groomer or grooming business owner doesn’t
count among their friends or associates
someone making this level of personal income.
Our trade magazines rarely write anything
about these owners, and a large majority of
pet groomers don’t join associations where
they might network with them. In fact,
nationwide very few groomers network with
other groomers in their areas. There's much
to say about self-employment income. Click the
Next bone now. |
