Startup cost

Starting a new dog grooming business is exciting, but it requires careful planning and money management. Whether you’re starting a new mobile business or opening up your first brick & mortar salon, one crucial step is figuring out your startup costs.

Before you can go out on your own, you need to know if you have enough upfront capital to make it work. Plus, understanding exactly how much your grooming business will cost you each month is important.

This process might seem overwhelming, especially if you just want to groom. In this article, we'll discuss how to calculate your upfront costs, list common expenses for both mobile grooming businesses and brick & mortar, and share a few money-saving tips.

How to calculate the cost of starting a grooming business

Understanding startup costs is crucial for any new business. After deciding what type of business model is best for your grooming & management skills, you can start to dive in to the specific costs for each model.

Here’s the process we’d recommend to follow:

1. Determine whether you are going Mobile or Brick & Mortar: The cost of starting a business can vary widely depending on which type of business you plan to start. For example, a mobile business may have lower monthly costs than a brick & mortar business, brick & mortar businesses usually have cheaper upfront costs. Therefore, it's important to determine which business model is right for you based on grooming skills, location, people management capabilities, and capital availability. We always recommend to draft a business plan to help you understand the unique elements associated with your business.
2. Create a list of startup expenses: Make a comprehensive list of all the expenses you'll need to pay before your business can begin making money. This may include everything from rent and utilities to marketing and grooming software. Do your homework and ask some friends to make sure you don’t miss anything.
3. Estimate the costs of each item: Once you have a list of expenses, it's time to estimate the cost of each item. This may involve researching the cost of used mobile grooming vans in your area, looking around Amazon or Groomer’s Mall for equipment costs, or consulting with a lawyer to understand startup legal fees. (We have an example list of average expense costs below).
4. Add up your estimated costs: After estimating the costs of each item on your list, separate out the upfront costs and monthly recurring costs. Then add up your upfront costs to get the total starting cost. To know how much your business will cost a year, add up your monthly recurring costs and multiply the total by 12.

By calculating the cost of your business, you can understand if it’s really feasible to start your own business. Plus, then you can create a realistic budget and financial plan that will help you determine your grooming service pricing list. Teddy’s startup cost calculator can also help with all these steps to help you throughout this process.

10 common startup costs & examples

Starting a grooming business involves a doodle sized lists of different costs. It can almost seem overwhelming to try and track them all down! We gathered the 10 most important that you shouldn’t forget and listed them below. By considering theses common monthly and one-time business expenses, you can develop a more accurate budget and better prepare your business for success.

Grooming software

Software is an essential part if you want your business to be professional from the beginning. Many groomers start on pen and paper, causing headaches and bad practices right out of the gate. Using a grooming software, you’ll be able to save time scheduling, tracking payments, and communicating with your customers. Your customers will love how professional you look and you’ll love how easy it makes running your business.

Grooming space

Are you going to buy a van or rent a 8,000 square foot space? Your grooming space cost is probably going to be your MOST important expense to take into consideration. It will vary based on your model, but either way you’ll need to consider the location, size, layout, and flexibility that your space offers.

Equipment and supplies

Equipment and supplies are essential for grooming - there’s absolutely no way around it! This  includes all the usual (shampoo, combs, towels, etc.) but also anything from a tablet to your cell phone!

Fuel and utilities

In addition to grooming space, you'll also need to consider the cost of monthly utilities and/or fuel. This could include your electric and water bill - along with your monthly gas if you’re mobile.

Permits and licensing

Depending on where your business is located, you may need to obtain permits and licenses from the local and state government. These can include business licenses, permits to operate in a certain location, and health and safety permits. There are no specific “grooming” permits or certifications you need, so you just need to register as a typical “Small Business”.

Business insurance

Business insurance can help protect your business in case of accidents, liability claims, or other unexpected events. When you’re working with other people’s dogs - we HIGHLY recommend the extra protection. Your insurance cost will vary based on what you want covered.

Lawyers & accountants

Many businesses will require the help of legal and accounting professionals. This could include lawyers to help with your startup costs (like filing an LLC) to an accountant that helps with bookkeeping and tax planning. We’ve seen businesses run with and without these pros - so it’s important to consider your needs. One thing we always say though… would you let your accountant groom your dog?? No 😂 So we recommend to stick to grooming and let the accountants stick to counting!

Employees

If you plan on hiring employees, you'll need to consider the cost of salaries, benefits, and payroll taxes. One thing that many mobile grooming owners forget - you should be paying yourself too! The cost of a normal salary + benefits is important to build into your budget (and it’s often forgotten)! If you plan on hiring other employees, don’t forget to include the cost of recruiting and training too!

Marketing

Marketing and market research is essential for getting the word out about your business and understanding your target audience. Many groomers don’t spend much on marketing when they get up and going, but in the early days we’d definitely recommend it to build up your client list. Consider the cost of printing business cards, hosting events, running ads, or hanging flyers.

Website + Online Booking

One really easy way to set your grooming business apart is through a website. Many of your competitors will have websites (or facebook pages) so creating a website for your business should be a no-brainer. It will help you build credibility, show that you’re a professional, and if you’re really a pro - let your clients book appointments online. Consider the cost of purchasing a domain name & setting up a website if you want to make a splash.

Taxes

DON’T FORGET to think about the tax bill you’ll owe Uncle Sam at the end of the year. This is something that many business owner’s forget to budget in as they get started. We recommend setting some money aside every month to help you cover these at the end of the year.

Bonus for Mobile Groomers - Maintenance and Repairs

Beware if you go down the mobile grooming path, you’ll not only be a groomer and business owner - but also a part time van maintenance person!! Van breakdowns are bound to happen, you just need to make sure you’re prepared for when they do! Set aside some money in your budget every month to plan for the unexpected.

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To give you a better idea of the costs involved, let's take a closer look at the average costs across the industry:

This table was compiled using data from various grooming business owners and sources including the Small Business Administration (SBA).

Note that these costs are only averages and can vary significantly depending on the specific needs of your business. It's important to remember that these are only estimates, and your actual costs may be higher or lower depending on your specific circumstances. Therefore, it's important to do your own research and create a budget that reflects your unique situation.

Tips to save money during the grooming business startup process

There’s no doubt about it, starting a grooming business can be expensive! But, we’ve spent enough time talking with grooming business experts and there are some common industry secrets to save money during the startup process. Here are some of those secrets:

• Negotiate prices: Talk to suppliers and vendors to negotiate better prices.
• Stay on budget: Make a budget and stick to it.
• Avoid random spending: Do not spend money on items that are not necessary for your business.
• Use less expensive tools: Use free tools and resources instead of paid ones. When it comes to grooming software, use more affordable solutions like Teddy.
• Buy supplies in bulk: Look for deals to buy shampoo and conditioner in bulk versus the pricer smaller solutions.
• Marketing Costs: Leveraging social media can be a cost-effective way for a new small business to reach a wider audience and save money on advertising expenses.
• Use tax write-offs: Take advantage of tax write-offs to reduce your overall costs.

How Teddy can help your grooming business grow

Teddy can be a valuable resource for your grooming business. With Teddy, you can use our grooming business startup calculator to estimate your expenses. We can also help with other needs as your grow your business, such as groomer management software, a team calendar, grooming website creator, and other useful tools.

Starting a grooming business requires careful planning and preparation. By calculating your costs and planning for common monthly expenses, you can be sure that you’re set up for long-term success.