How to Start a Dog Grooming Business

Dog lovers treat their dogs like children, and they want to keep them clean and looking good. Dog groomers fill that bill by washing, trimming, and sometimes even pampering dogs with facials and other spa-like services. Dog grooming is part of the pet grooming and boarding industry which is worth nearly $9 billion in the US You can start a dog grooming business from your home, brush out a piece of that market, and put some cash in your wallet. 

To start a dog grooming business, however, you need to understand the challenges and the process to be successful. Fortunately, this step-by-step guide has the inside scoop on everything it takes to be successful with your dog grooming company.

Step 1: Decide if the Business Is Right for You

Pros and cons

Starting a dog grooming business has pros and cons to consider before deciding if it’s right for you.

Dog grooming industry trends

Industry size and growth

• Industry size and past growth – The pet grooming and boarding industry in the US is worth more than $8 billion. The industry has grown over 40% in the last decade.((https://www.ibisworld.com/industry-statistics/market-size/pet-grooming-boarding-united-states/)) 
• Growth forecast – The trend to treat dogs as family members and consumers’ willingness to pay for pet care services present growth opportunities for the pet grooming industry.((https://www.ibisworld.com/united-states/market-research-reports/pet-grooming-boarding-industry/))
• Number of businesses – There are more than 130,000 pet grooming and boarding businesses in the US.((https://www.ibisworld.com/industry-statistics/number-of-businesses/pet-grooming-boarding-united-states/)) 
• Number of people employed – The industry employs more than 230,000 people.((https://www.ibisworld.com/industry-statistics/employment/pet-grooming-boarding-united-states/))

Trends and challenges

Trends in the dog grooming industry include:

• Pet adoptions were through the roof in 2020, which is great for dog grooming businesses. Dog ownership among millennials is also increasing.
• Eco-friendly pet products, including grooming products, are in demand.
• Mobile grooming services are increasing in popularity since people are still staying home more than pre-pandemic.

Some challenges also exist in the dog grooming industry which include:

• Liability exists if a dog is injured during grooming. Litigation against dog groomers does occur, so it’s important to be properly insured.
• Dog grooming is an industry with low barriers to entry, so it is very competitive.

Consumer spending

• Average consumer spend – Dog owners spent $442 on average on pet food in 2020.((https://www.statista.com/statistics/250851/basic-annual-expenses-for-dog-and-cat-owners-in-the-us/))
• Potential customer base – Nearly 70 million US households owned at least one dog, according to a 2021-2022 survey.((https://www.statista.com/statistics/198095/pets-in-the-united-states-by-type-in-2008/))
• Average prices – A grooming package costs between $100 and $150.

What kind of people work in dog grooming?

• Gender – Nearly 85% of dog groomers are female, while about 15% are male.((https://www.zippia.com/dog-groomer-jobs/demographics/#gender-statistics))
• Average level of education – 40% of dog groomers finished high school and 20% obtained an associate degree.((https://www.zippia.com/dog-groomer-jobs/education/))
• Average age – The average age of dog groomers is 32 years old.((https://www.zippia.com/dog-groomer-jobs/demographics/#age-statistics))

How much does it cost to start a dog grooming business?

Startup costs for a dog grooming business range from about $3,500 to $10,000. The main expenses are for equipment and a website. The high end assumes that you will do a mobile service and includes the cost of a down payment on a van to transport your equipment and supplies.

You’ll need a handful of items to successfully launch your dog grooming business, including: 

• Grooming tables
• Dryers
• Bathing tubs
• Kennels
• Grooming hose and/or shower attachments
• Brushes, combs, shears, clippers
• De-matters
• Shampoo and conditioner
• Ear cleaning products

Start-up Costs	Ballpark Range	Average
Setting up a business name and corporation	$150 - $200	$175
Business licenses and permits	$100 - $300	$200
Insurance	$100-$300	$200
Business cards and brochures	$200 - $300	$250
Website setup	$1,000 - $3,000	$2,000
Dog grooming supplies and equipment	$2,000 - $3,000	$2,500
Van to transport equipment - down payment	$0 - $3,000	$1,500
Total	$3,550 - $10,100	$6,825

How much can you earn from a dog grooming business?

A full grooming package that includes nail clipping and ear cleaning costs between $100 and $150. Add-on services such as a facial can add $15 to $20 more. Working by yourself from home, your profit margin should be about 90%.

In your first year or two, you could work from home and do 10 groomings a week at $130, bringing in over $65,000 in annual revenue. This would mean over $60,000 in profit, assuming that 90% margin. As your brand gains recognition, sales could climb to 25 groomings a week. You might hire a helper at this stage, reducing your profit margin to about 60%. With expected annual revenue of nearly $170,000, you would make just over $100,000.

What barriers to entry are there?

There are a few barriers to entry for a dog grooming business. Your biggest challenges will be:

• Having the skills to be a dog groomer, and being good with dogs
• Facing competition from large pet stores that do grooming

Step 2: Hone Your Idea

Now that you know what’s involved in starting a dog grooming business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research dog grooming businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a mobile dog grooming business. 

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

Determine what grooming services you want to offer. You could offer things like:

• Baths and brushing
• Eye and ear cleaning
• Hair trimming
• Nail trimming
• Teeth brushing
• De-shedding treatments
• Anal gland expression
• De-matting treatments
• Facials
• Pedicures

How much should you charge for dog grooming services?

Prices for a dog grooming package range from $100 to $150. Baths-only cost about $30. For add-on services, you can expect to charge about $15 to $20 each. Your expenses should be limited to shampoos or other supplies, plus fuel, so you should aim for a profit margin of about 90%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price point. Remember, the price you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market is a broad one – dog owners. However, the people who can pay for dog grooming are going to be more established people, so you can find them on sites like Facebook or LinkedIn. You can also distribute flyers at pet stores that do not offer dog grooming.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low, and it’s likely that you will continue to do so. But if you really want to expand, you might want to rent a dog grooming facility. Find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “pet grooming” or “dog grooming”, boosts SEO
• Name should allow for expansion, for ex: “Bark Avenue Grooming” over “Show Dog Grooming Services”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: A brief overview highlighting the essential points of the dog grooming business plan.
• Business Overview: An introduction detailing the nature, purpose, and goals of the dog grooming business.
• Product and Services: Outline of the specific grooming services and products offered, emphasizing uniqueness and quality.
• Market Analysis: Examination of the target market, including demographics, trends, and potential growth for the dog grooming business.
• Competitive Analysis: Evaluation of competitors in the dog grooming industry, identifying strengths and weaknesses.
• Sales and Marketing: Strategies for promoting the business, acquiring customers, and driving sales in the dog grooming market.
• Management Team: Introduction to the individuals responsible for leading and managing the dog grooming business.
• Operations Plan: Details on the day-to-day functioning of the business, covering facilities, equipment, and workflow for dog grooming services.
• Financial Plan: Financial projections, budgeting, and funding requirements for the successful operation and growth of the dog grooming business.
• Appendix: Supplementary materials, such as additional data, charts, or documents supporting the dog grooming business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider finding and hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to dog grooming businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your dog grooming business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a dog grooming business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Licenses/Permits

Starting a dog grooming business requires obtaining a number of licenses and permits from local, state, and federal governments. Federal regulations, licenses, and permits associated with starting your business include doing business as, health license and permit from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account. Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your dog grooming business as a sole proprietorship. 

Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You can use industry-specific software, such as DaySmartPet, Pawfinity, or groomsoft, to manage online bookings, appointments, expense tracking, and billing. 

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero. 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Marketing

For your dog grooming business, the marketing strategy should focus on showcasing the quality of your grooming services, the expertise of your staff, and the care you take in ensuring a positive experience for both dogs and their owners. Emphasize the range of your grooming services, the benefits of regular grooming for pets, and any specialty services you offer.

The goal is to establish your business as a trusted, caring, and professional choice for dog owners. Here are some powerful marketing strategies for your future business:

Kickstart Marketing

• Professional Branding: Your branding should reflect the friendly, caring, and professional nature of your services. This includes your logo, business cards, and the design of your grooming salon.
• Direct Outreach: Network with local veterinarians, pet stores, and dog clubs to introduce your services. Building partnerships can also lead to referrals.

Digital Presence and Online Marketing

• Professional Website and SEO: Develop an attractive website showcasing your services, pricing, and before-and-after photos of your grooming work. Use SEO best practices to optimize your site for local search terms related to dog grooming, pet care, and grooming salons.
• Social Media Engagement: Utilize platforms like Instagram and Facebook to post engaging content such as photos and videos of your grooming process, happy canine clients, and grooming tips.

Content Marketing and Engagement

• Grooming Blog: Share informative articles about pet care, grooming techniques, and the benefits of professional grooming.
• Customer Testimonials and Reviews: Highlight positive reviews and testimonials from satisfied clients, showcasing the difference your services have made for their pets.
• Video Tutorials and Tips: Create video content offering grooming tips for pet owners, showcasing your expertise and engaging your audience.

Experiential and In-Person Engagements

• Open House Events: Host open house events at your salon where potential customers can visit, meet you and your staff, and see your facility.
• Local Community Events: Participate in local pet-related events, fairs, and dog shows to increase visibility and network with dog owners.

Collaborations and Community

• Partnerships with Local Pet Businesses: Collaborate with pet stores, dog walkers, and vets for cross-promotion or bundled services.
• Community Involvement: Sponsor local pet charity events or dog sports competitions to demonstrate your commitment to the pet community.

Customer Relationship and Loyalty Programs

• Loyalty Rewards for Regular Customers: Implement a loyalty program that offers discounts or free services after a certain number of visits.
• Referral Discounts: Encourage word-of-mouth marketing by offering discounts to customers who refer new clients to your grooming salon.

Promotions and Advertising

• Targeted Local Advertising: Use local community boards, pet store bulletin boards, and online local forums to advertise your services.
• Email Marketing: Send regular newsletters to your clients with grooming tips, special offers, and updates about your business.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your dog grooming business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your dog grooming business could be: 

• Pamper your dog with spa-like grooming
• Mobile dog grooming at your convenience
• Loving full-service dog grooming for less

Networking

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a dog grooming business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in dog grooming for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in dog grooming. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a dog grooming business would include:

• Dog Groomers – provide grooming services
• General Manager – scheduling, staff management, accounting
• Marketing Lead – SEO strategies, social media, other marketing

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Dog Grooming Business – Start Making Money!

People pay a lot of money to take care of their beloved dogs. The total pet industry in the US is worth over $100 billion, with dog grooming taking in $9 billion of that annually. As a dog lover, starting your own dog grooming business will be fun and rewarding, and it will enable you to make a nice living at the same time. 

You can run your business from home, and perhaps later expand to have a grooming facility – maybe even more than one! Now that you have groomed your business knowledge, you can continue on the path to entrepreneurship and being a successful business owner.