Starting a dog grooming business can be a rewarding venture, blending a passion for animals and grooming skills with smart business sense. The industry pulls in billions of dollars annually, fueled by steady demand for grooming services from everyday pet owners and those with show dogs alike.
This guide will walk you through the practical steps of validating your business idea, securing funding, obtaining licenses, choosing a location, and acquiring equipment to help you launch a successful dog grooming business in the U.S.
Step 1: Plan and validate your business idea
Conduct market research
Start by visiting local dog parks and pet stores. Talk to at least 15-20 dog owners about their current grooming habits, what they pay, and what services they wish were available. This direct feedback is more valuable than generic online data.
You can also join local Facebook or Nextdoor groups for your area. Pose questions about what people look for in a groomer to understand demand and price sensitivity before you invest a single dollar.
Analyze your competition and costs
Use Google Maps to identify every groomer in a 10-mile radius. Create a simple spreadsheet to track their services, prices, and online review scores. A common mistake is to only compare prices. Also note their branding, booking process, and unique offerings.
Speaking of costs, a small salon can require $10,000 to $50,000 to start. A mobile grooming van often costs more, from $40,000 to $80,000. Your budget should account for equipment like tables and tubs ($3,000-$7,000) and initial licenses and insurance ($500-$1,500).
Here are 3 immediate steps to take:
- Survey at least 15 dog owners about their grooming needs and spending.
- Create a spreadsheet listing 5 local competitors with their services and prices.
- Draft a preliminary budget with estimated costs for equipment and licensing.
Step 2: Set up your legal structure and get licensed
You will want to register your business as a Limited Liability Company (LLC). This structure protects your personal assets if the business faces a lawsuit. Many new groomers make the mistake of operating as a sole proprietor, which offers no such protection.
Filing for an LLC with your Secretary of State can cost between $50 and $500. Once it is approved, get a free Employer Identification Number (EIN) from the IRS website. This number is necessary for filing taxes and hiring employees.
Permits and regulations
Most states do not require a specific groomer certification, but you will need a general business license from your city or county, which usually costs $50 to $100 annually. If you plan to operate from home, you must confirm local zoning laws permit it.
Mobile grooming vans often require special vehicle permits. Contact your city planning or clerk's office to understand the exact requirements and timelines. Also, look into professional liability insurance, often called "animal bailee" coverage, which protects you if a pet is injured in your care.
Here are 3 immediate steps to take:
- File for an LLC with your state's Secretary of State office.
- Apply for a free Employer Identification Number (EIN) on the IRS website.
- Contact your city clerk about a business license and any home-based or mobile unit permits.
Step 3: Secure insurance and manage risk
Your next move is to secure insurance. You will need General Liability, which covers incidents like a client slipping in your salon. Expect to pay between $400 and $900 annually for a standard $1 million policy.
Many new groomers only get general liability, but you also need Professional Liability. This is often called "animal bailee" coverage. It protects you if a dog is accidentally injured during a groom, which a standard policy will not cover.
Additional coverage to consider
If you operate a mobile van, you must have a Commercial Auto policy, as personal car insurance will not cover business use. For a physical salon, you will need Commercial Property insurance. If you hire anyone, Workers' Compensation is legally required in most states.
Instead of a general agent, seek out insurers who specialize in pet businesses. Companies like Pet Care Insurance, Kennel Pro, or Business Insurers of the Carolinas understand the specific risks and can offer better-suited policies. Get quotes from at least two of them.
Here are 3 immediate steps to take:
- Request quotes for both General Liability and "animal bailee" coverage.
- Contact a specialized pet care insurer, such as Pet Care Insurance or Kennel Pro.
- Confirm if you need Commercial Auto or Commercial Property insurance based on your business model.
Step 4: Choose your location and buy equipment
Look for a commercial space between 500 and 800 square feet. Before you sign a lease, confirm with your city that the zoning allows for an "animal care" business. Some areas have specific rules about ventilation and water drainage you must follow.
When you negotiate your lease, ask about a Tenant Improvement (TI) allowance. This is money from the landlord to help you build out the space. It can cover expensive needs like installing a walk-in grooming tub or adding waterproof flooring.
Stocking your salon
With a location in mind, you can purchase your equipment. Many new owners try to save with consumer-grade clippers, but these will not withstand daily use. Invest in professional gear from suppliers like Ryan's Pet Supplies or Groomer's Choice from the start.
A hydraulic grooming table can run from $500 to $2,000. Expect to pay $1,500 to $4,000 for a stainless steel tub and another $300 to $600 for a high-velocity dryer. A good set of professional clippers and shears will add another $500 or more.
Here are 3 immediate steps to take:
- Identify two potential locations and verify their zoning with your city clerk.
- Request a price list for a startup equipment package from a supplier like Groomer's Choice.
- When viewing properties, ask the landlord if a Tenant Improvement allowance is available.
Step 5: Set up payment processing
Most groomers require payment immediately after the service is complete. For new clients or extensive appointments, you might consider taking a small deposit upfront to prevent no-shows. This protects your time and revenue.
You will need a way to accept credit cards, debit cards, and digital wallets. Many new owners find themselves stuck with processors that charge high fees or require expensive hardware rentals. Look for a solution with transparent, low rates and no long-term contracts.
For groomers who need to accept payments on-site or on-the-go, JIM offers a streamlined solution. With JIM, you can accept debit, credit, and digital wallets directly through your smartphone. Just tap and it is done.
At just 1.99% per transaction with no hidden costs or extra hardware needed, it is a great fit for mobile groomers or salon owners who want to avoid countertop clutter. This rate is competitive, as many other providers charge between 2.5% and 3.5%.
- Get Started: Download JIM app for iOS
- Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone
- Access Funds: Your money is available right on your JIM card as soon as the sale is done - no waiting for bank transfers
Here are 3 immediate steps to take:
- Decide if you will require deposits for new clients.
- Compare the transaction fees and hardware costs of two different payment processors.
- Download the JIM app to explore its features for your business.
Step 6: Fund your business and manage finances
The Small Business Administration (SBA) is a great starting point. Look into their 7(a) loan program, which can fund everything from equipment to working capital. For a new salon, loans between $25,000 and $100,000 are common, with interest rates typically around Prime plus 2-4%.
You will generally need a credit score over 680 to qualify. If you need less, the SBA Microloan program offers up to $50,000 and can have more flexible requirements. Also, consider equipment financing directly from suppliers like Ryan's Pet Supplies to pay for gear over time.
Now, let's talk about working capital. This is the cash for daily operations. Many new owners focus only on equipment costs and run out of money. You should budget at least $10,000 to $20,000 to cover your first six months of rent, supplies, and marketing.
Keep your finances separate
From day one, open a separate business checking account. Mixing personal and business funds is a messy habit that can cause major headaches during tax season. It also weakens the liability protection your LLC provides. This simple step keeps your bookkeeping clean and professional.
Here are 3 immediate steps to take:
- Open a dedicated business checking account.
- Research the SBA 7(a) and Microloan programs on the SBA website.
- Calculate your estimated working capital needs for the first six months.
Step 7: Hire staff and set up operations
Build your grooming team
Your first hire will likely be a Pet Groomer or a Bather/Brusher. Groomers, who handle full cuts, typically earn a 40-60% commission per service or an hourly rate of $15-$25. Bathers, who prep dogs, usually make $12-$18 per hour.
While most states do not mandate it, certifications from the National Dog Groomers Association of America (NDGAA) can build client trust. A common misstep is to hire for skill alone. You should also assess a candidate’s reliability and patience with anxious dogs during a trial groom.
Streamline your daily operations
Manual appointment books lead to double bookings and lost revenue. You might want to use a dedicated scheduling software from day one. Platforms like MoeGo, Groomsoft, or Gingr manage appointments, send client reminders, and store pet-specific notes.
As a benchmark, a single experienced groomer can generate between $60,000 and $100,000 in annual revenue. Aim to keep your total labor costs, including your own salary, at around 40-50% of your gross income to maintain healthy profit margins.
Here are 3 immediate steps to take:
- Draft job descriptions for a Pet Groomer and a Bather/Brusher.
- Schedule demos for two grooming software platforms, such as MoeGo and Gingr.
- Calculate your target labor cost based on a projected 45% of your estimated first-year revenue.
Step 8: Market your business and get customers
Start with hyper-local marketing. You can partner with local vet clinics, pet stores, and doggy daycares. Offer them a referral program, such as a 10% discount for their clients or a small commission for every booked appointment. This builds credibility faster than paid ads.
Next, claim your free Google Business Profile. This is non-negotiable for local search visibility. Encourage your first few clients to leave reviews. Aim to get at least five 5-star reviews in your first month to establish immediate trust with prospects searching online.
Build your online portfolio
Use Instagram and Facebook to post high-quality before-and-after photos of your grooms. Many new owners make the mistake of posting dark or blurry pictures. Your social media feed is your digital portfolio, so make sure the dogs look great. This is what convinces owners to book.
You might want to run a "first groom" promotion, like $15 off, to attract initial customers. Your customer acquisition cost (CAC) should ideally be under $40. Once a client experiences your quality service, the lifetime value of that customer will far exceed the initial discount.
Here are 3 immediate steps to take:
- Create and completely fill out your free Google Business Profile.
- Visit two local vet clinics or pet stores to propose a referral partnership.
- Plan a "first groom" discount to post on your social media accounts.
Step 9: Set your prices and profit margins
Most groomers price services based on the dog's size, breed, and coat condition. A simple bath for a short-haired small dog might be $40. A full groom for a large, matted doodle could be $150 or more. You can also offer package deals that bundle a groom with other services.
Do not forget to price high-margin add-on services. Simple extras like teeth brushing, nail grinding, or a de-shedding treatment can add $10 to $25 to each ticket. These small upgrades significantly boost your average revenue per customer with minimal extra time.
Calculate your costs and margins
Many new owners underprice because they only look at competitor prices. You must first calculate your cost per service. Factor in shampoo, conditioner, and other consumables. These costs seem small but can eat 3-5% of your revenue if you do not account for them.
Your target net profit margin should be between 15% and 25% after all expenses. With labor costs at 40-50% of revenue, you need to price your services carefully to ensure you have enough left over. Pricing too low is a quick path to financial trouble.
Here are 3 immediate steps to take:
- Create a price list for a basic groom based on three dog sizes (small, medium, large).
- Identify three high-margin add-on services, like nail grinding or teeth brushing, and set their prices.
- Calculate your supply cost for a single standard groom to understand your base cost.
Step 10: Maintain quality and scale your business
Once your schedule fills up, your focus must shift to consistency. You can use your client return rate as a key metric. Aim for at least 80% of new clients to book a second appointment. Also, track complaints or requests for "fix-it" grooms, keeping them below 2% of total services.
Know when to grow
Many owners wait until they are completely overwhelmed to hire help. A better approach is to start your search when you are consistently booked two to three weeks in advance. This gives you time to find the right person without turning away new business.
When your entire team is booked solid, it is time to think about expansion. This could mean adding another grooming station or exploring a second location. Your scheduling software, like MoeGo or Gingr, has features to manage multiple staff members and locations, which simplifies this process.
Here are 3 immediate steps to take:
- Calculate your client return rate from the last three months.
- Set a booking threshold, like being 80% booked for three weeks out, to trigger your hiring process.
- Explore the multi-staff scheduling features in your grooming software.
Starting a dog grooming business is about more than just skill. Your success will depend on the trust you build with pets and their owners. You have the roadmap to get started, so take that first step with confidence.
As you welcome your first clients, a simple payment process helps. JIM turns your phone into a card reader to accept payments for a flat 1.99% fee, with no extra hardware needed. Download JIM to get ready for your first sale.
