What to Consider when Buying a Dog Grooming Business

by Vanessa Lovie 1st of April, 2024

Dog Grooming Business

Buying a dog grooming business can be a rewarding venture, especially if you like working with dogs and have a knack for clipping and washing. Hello show dogs! But as with all business purchases, it requires careful consideration to ensure you are buying the right business for you.

If you are currently skilled in dog clipping and grooming then the next step could be to become a business owner. Buying an established dog grooming business that is for sale is a great way to enter the industry and take your skills to the next level.

Australians love their pets, and out of all pet owners 48% own a dog, and there are over 6 million dogs in Australia - can we get a woof woof?

But before you get caught up in the glitz of owning a dog salon and checking out the latest hair syles on Youtube its important to look at the business subjectively so you understand what it involves and how you can actually make money.

A lot of the dog wash and groomers that are for sale are owner-operator, mobile or self-service kiosk. This means that you will be required to work to earn an income. Some dog groomers are large enough to employ teams but it is not often the case. So reveiew what is involved in buying a business and how this can be applied to dog groomers.

8 things to consider when buying a dog wash or grooming business

1. Where is it Located?

Accessibility is crucial. People want to be able to easily get their dogs out of the car and bring them in. If they have to park 100m away they are less likely to return. The business should be situated in a convenient area for customers, with easy access and ample parking.

It's also important to research the local population's pet ownership rates and income levels to determine potential demand for grooming services. Additionally, analyzing the competition in the area is essential. A market saturated with similar businesses may be challenging to enter unless you can offer unique or superior services.

2. Is it Making Money?

A thorough review of the business's financial health is imperative. Examine the financial statements for the past few years to assess revenue and profit growth. Consistent growth is a positive indicator. Understanding the cost structure, including rent, utilities, supplies, and labor, will give you a clear picture of ongoing expenses. Be sure to check for any outstanding debts or liabilities that you would inherit as the new owner, as these could impact the business's financial stability.

You need to assess how much time the business owner is investing in the business and how much they actually earn. There are alot of very profitable business groomers but they are usually in areas with little competition and high demands.

3. Who are the clients?

The existing client base is a significant asset in a dog grooming business. Evaluate the current client list to gauge the business's customer loyalty and retention rates. You need to be confident when you are buying the business that the clients will stay with you and not follow the owner to a new location. Its important to have a non-compete clause in your contract of sale. Also make sure there is ample training provided so you have time to meet with all the clients and a smooth transition can occur.

Additionally, review online testimonials and customer reviews to understand the business's reputation. High customer satisfaction can lead to repeat business and word-of-mouth referrals, which are invaluable for sustained success.

Dog groomer skilled

4. Staff and Management

A lot of dog groomers are owner-operator or mobile, but experienced team are essential to the success of this business. No one wants their golden retreiver walking out with a poodle cut!

Some of the major retailers like Pet Barn offer grooming courses so you can improve your skills.

Experienced and skilled staff are crucial for the success of a dog grooming business. Determine if the existing staff, especially groomers, will stay on post-acquisition. It's also important to check the staff’s credentials and certifications to ensure they meet industry standards. Understanding the current management structure will help you decide if you need to hire additional managers or if you will take on a management role yourself.

5. Equipment and Supplies

Inspect the condition of the grooming equipment and facilities. Well-maintained, modern equipment can reduce startup costs and ensure efficient operations. Additionally, evaluate the existing inventory of grooming products and supplies. Having a well-stocked inventory is essential for day-to-day operations and customer satisfaction.

6. Services Offered

Review the range of services offered by the business. In addition to basic grooming, consider whether the business offers or could offer additional services like boarding, daycare, or retail sales of pet products. Understanding the pricing strategy is also important. Compare it with competitors to determine if there’s room for price adjustments that could enhance profitability without losing customers.

This is a key area that could be improved on to increase revenue. Alot of groomers dont understand the value in the 'upsell' and if you can harness this you can make alot more profit from the business. Who doesnt want to buy some dog treats today shaped like a donut!

7. Legal and Regulatory Compliance

Ensure the business has all necessary licenses and permits to operate legally. All councils and states are different so you need to check with your location. Compliance with health and safety regulations is critical to avoid future liabilities. This includes maintaining clean and safe facilities for both pets and staff, and adhering to local and state regulations regarding pet care businesses.

8. Marketing and Branding

Assess the strength of the brand and its recognition in the market. A strong brand can attract and retain customers. Look at past marketing efforts and their effectiveness. This can include social media presence, local advertising, and customer loyalty programs. Consider potential improvements and new strategies to increase the business's visibility and attract new clients.

9. Growth Potential

Research trends in the pet grooming industry to understand the market's growth potential. A growing market can offer more opportunities for expanding your business like adding on a pet shop. The seller may have written growth potential in their advertisement - so see what they reccommend, as they will know best at this moment.

10. Personal Interest and Passion

Finally, ensure you have a genuine interest and passion for working with animals. If you dont like dogs - probably look elsewhere. If you dont like dirt and hair - probably look elsewhere.

Owning a dog grooming business requires dedication and a love for pets. This passion can significantly impact the business’s success and your personal satisfaction. Being involved in a business that aligns with your interests will make the challenges more manageable and the successes more rewarding.

Franchised Dog Grooming Trailers

A common option for people entering the dog grooming business is to purchase a dog grooming trailer that is franchised or branded. This will give you the franchisor support, brand name and access to clients. Extensive training on grooming techniques, customer service, and business management is often provided, ensuring preparedness for business operations.

Franchise dog grooming trailers offer a unique and convenient way to enter the pet grooming industry by bringing grooming services directly to clients' doorsteps, reducing overhead costs and providing high convenience for pet owners. Its important to check your territory and how much competition is in the area.

Clients are not gaurenteed with a franchise model and you will still need to work hard and hone your craft so clients continue to request your services.

So are you ready to buy a dog wash or grooming business?

Its a good idea to register for alerts so you can see when a new opportunity is listed. There are not thousands of dog groomers for sale, they tend to be a lucrative rather hidden market. So you need to be on your game if you want to find a good opportunity.

Originally published: 01/11/2011. Updated Feb 2024

Tags: dog grooming dog wash businesses for sale