Sunday, April 19, 2009

Grooming business

  The cash demand required to open a grooming business is typically the greatest for commercial salons and shops. If you are interested in opening a salon or shop be sure to read our Startup Cost Information Main Menu and the Salon Design Information Main Menu. Keep in mind that even the largest pet grooming salon was once a small one. Most groomers have to borrow money through a business plan and bank loan to open a salon or shop, and today the absolute shoestring startup cost is $50,000, and more often and more comfortable would be $75,000 to $100,000.

   The greatest cost factor is "leasehold improvements." The new location is certain to need some plumbing, electrical, flooring enhancement, carpentry and signage work to prepare for a grooming operation. These "leasehold improvements" typically require half of the money borrowed. PetGroomer.com staff have written over 100 business plans in the last few years, so we speak from substantial experience.

   It is always a bit of joy when the new business owner has family and friends that are legally able to do some of the leasehold improvements at a reduced cost. Sometimes the landlords will absorb a portion of the improvements, or reduce the rent to acknowledge the investment in their property. Here's our number one rule, NEVER sign a rent or lease contract no matter how much pressure you are under unless you have clearly, absolutely have a guarantee of cash investment required as stated by your business plan, especially if it is coming from a bank or investor.

If you sign a lease or rent contract and don't get your financing, you are stuck paying the rent your contracted for and that is only one caution. As consultants specializing in the process of opening new, or expanding, pet care businesses, we suggest you consider our assistance described at Grooming Business in a Box. Even a short consultation can save you thousands, and we have a long history of doing just that as most pet groomers are first time business owners, and we learn by experience, don't we?

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