Start up costs

[DogGamut]

I know its a broad question so ill try to include details to make it an easier answer..

Im in california, wanting to start a grooming shop, what would be the smallest amount needed to safely get started. the salon doesnt need to be too big maybe 10 employees total but for starters i can accept just me as the groomer, im thinking 10,000 and i have heard of people starting with a fifth of that. lets say if i had a total of 4 tubs 4 tables 4 groomers with all the stuff that goes along with it like dryers tables etc, ball park figures are fine, if nothing else let me know what you started with! thanks again!

[HoneyandChewiespal]

Are you currently A trained groomer with an established clientele?
Have you done a study for the area to see what the need is and what population is available ?
Without some more info it sounds like you want to start something that will suck up your cash and leave you with bills to pay.

[poodlecsigreen]

In CA try more like 50,000 to 100,000 to start. Most new business fail in the first 1 to 5 years because they are under funded. You need enough money to run the business with out making a profit for 5 years.

[DogGamut]

Trained Groomer, Trained Groomers as well, There's an overflow of clientele, constantly new houses being put up, high income area, with very reasonable retail space price wise. I imagine having around 8-10 groomers/bathers working full time after its going but again I'm not below starting myself and building from there. I've been grooming in this area for years, its hard not to see clients when i go out, The Demand isn't an issue, I even know how much each employee should make me minimum a year etc (projected numbers) all the things one would do before looking into start up costs have been done just looking for other peoples experiences

[DogGamut]

In CA try more like 50,000 to 100,000 to start. Most new business fail in the first 1 to 5 years because they are under funded. You need enough money to run the business with out making a profit for 5 years.

A good general rule of for dense cities like San Diego but a shop just opened in riverside for 2,000.00 granted that it doesn't look great off the bat, but I'd want something a lot better. From the numbers I'm looking at I can't imagine not turning a profit very quickly. 50,000 seems like an overshoot. ( but does leave room for a company van which I like and plenty of advertising) but I also face the option of starting with let's say a 20,000.00 loan and going from there. Just based on what I've priced out I'm no where near 50k and can't imagine having a demand issue ever, even the slow months here are profitable. What would you think 50k gets me? I'm imagining a very nice top quality salon

[SetterGirl]

You need at least 6 months rent, the deposit, and cost for the build out and basic supplies and tools. Start an excel sheet and calculate out the price for tables, tubs, towels, a washer and dryer, enough shampoo for 3-4 months, dryers, cages and kennels. That's a good base and then get quotes for a build out. I'd imagine plumbing and permits are going to be a big cost as well, so trying to negotiate those in your lease would be the best options. Don't forget there's also workman's comp, payroll taxes, and unemployment insurance on those employees and in California, there are new commission laws, so make sure you're familiar with all of that.

[Catlin]

Setter is right. I'm looking now for a place that I can use. I know that I have access to $20,000-$30,000 and am now looking for a place where build out and rent will allow that to cover a minimum of 6 months expenses on top of my open expenses.

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[yankeedoodlepoodle]

I would use grooming in a box, way better than a homemade spreadsheet, they didn't leave out a detail. One of my groomers bought it and we helped her with it. She moved about 50 miles away when husband had to relocate. She was able to get a loan with her plan she created from the box.

[wild4westies]

I agree with Settergirl's and yankeedoodlepoodle. Be sure you thoroughly read From Problems To Profits: The Madson Management System for Pet Grooming Businesses. If you plan on that many employees, you can employ their salaried team grooming method from the get-go and, in my opinion, be one step ahead of the pack. It also helps you think through preparations for your business you might otherwise overlook.

[Brit]

You need a real small shop without a lot of improvements for that amount of funds considering you are saying you need to cover some months of covering losses.