General Business

Why Pet Franchises are The Safest Investment in 2019

Did you know that nearly half of the households in the United States have dogs inside of them? That’s an estimated 90 million four-legged friends that are running around the house barking at the neighbors as we speak. When you tell the average person that statistic it sounds like a fun fact, however, when you tell an entrepreneur that half of American households have dogs inside them, they see money signs pop outside of their eyeballs.

Based on these statistics, it’s not surprising to see pet-related businesses have been popping up left, right and center over the past decade, and many of these have emerged into the world of franchising. From pet sitting and dog walking to animal grooming, there’s a business out there to cater for the need and whim of every four-legged friend in America.

I guess you could say that the statistics really do “bark” for themselves. But what is it particularly that makes the world of animal services so attractive for both franchisors and would-be franchisees?

Why the Pet Industry is the Safest Investment

An important element to a safe investment is scalability and teachability, especially from the franchise standpoint. The beauty of most pet-related businesses is that they are simple and straightforward enough to be replicated by another person in any type of geographical area. This is why pet franchises are so popular, why start a brand new business when you can find a model that’s already working successfully? A new dog grooming franchise can be fully staffed and trained within 6 months time.

Franchisees can begin to be profitable in absolutely no time, this is why franchising can be a win-win situation for both franchisor and franchisee.

dog grooming franchises

The nature of a pet-related business also means that it’s unlikely to be significantly affected by regional or geographic variations, making it a model that is likely to be suitable for expansion on a significant scale if all other elements for success are present and correct.

The pet industry also has the numbers to back all of this up, did you know that the pet industry is recession proof? 92% of pet owners spent the same or more on their pets during the most recent recession period, according to Forbes. This means that the $80 billion dollar industry keeps on giving, no matter if it’s the recession or a thriving economy, the pet industry is always profitable.

Do you Need to Love Animals?

Passion for animals is definitely an important factor when looking to invest hard earned cash into a business model in a sector such as the pet industry. Many people will join a dog franchise based off their passion alone, not to mention the $80 billion dollar pet industry which makes it that much more appealing. A pet franchise allows the opportunity to build a business around a love for animals, and allows animal lovers to bring their pet along to work!

love animalsIf you love what you do you’ll never work a day in your life. This is something that many people rely on when they follow their dreams of owning a pet business. Nothing is more enjoyable than going to work everyday enjoying what you do.

Many people join the pet industry on this love and passion alone, and when passion meets entrepreneurship, magical things happen. Every single year more and more people are looking for flexible working opportunities and opportunities where they can work from home and choose the hours that they work.

Many of the pet franchises available allow the franchisee to operate the business from a home office – where you can work with your own cat or dog curled up at your feet!

What’s the Best Pet Franchise to Invest in?

One of the most unique and fastest growing pet franchises today is Splash and Dash Groomerie & Boutique. Splash and Dash’s impressive growth has been recognized by the Inc 5000, not once, not twice, but three times.

best pet franchise to invest in

Splash and Dash is one of the fastest growing franchises in the fastest growing industry. Splash and Dash is revolutionizing the pet industry by offering a “Unlimited Monthly Bath and Brush” membership starting as low as $39.95 per month, allowing pet parents to bring their dogs in as many times as necessary.

For customers, the simple monthly fee keeps their pet care costs affordable and predictable, and franchise owners enjoy steady predictable recurring income and constant “up-sell” opportunities from the high traffic in their store. This is the perfect business model for entrepreneurs because it brings tons of foot traffic to your brick and mortar store and has so much more potential for growth.

Multiple revenue streams that are build in to the business model, from the dog wash and grooming, to the organic and natural pet treats and toys, Splash and Dash is ahead of the competition. To see all of what Splash and Dash has to offer, download the free franchise report below.

Download FREE Franchise Report

Five Ins and Outs of How to Apply for a Small Business Loan

How to Get a Small Business Loan in Five Easy Steps

Congratulations! You’re getting your small business off the ground and into a bright horizon. With the resources of a small business loan, you’ll have the adequate funding to maintain a prosperous business. Whether you own a pet franchise, independent business, or are delving into a new start-up—having the financial backing helps.

This article helps summarize the process. There is a lot of paperwork involved in loan application process whether through a bank, credit union, or the SBA. Organization is crucial. You will need to clearly state why your business needs a loan and determine the amount you will need to take out.

Be prepared to answer the following questions:

  • Why are you applying for this loan?
  • How will the loan proceeds be used?
  • What assets need to be purchased, and who are your suppliers?
  • What other business debt do you have, and who are your creditors?
  • Who are the members of your management team?
  • Questions relevant to your personal background.

Organize all Required Documents

Before investing precious time and resources into the application process, first, procure all the documents you will need. This will expedite the whole process.

To start, you will need to check your personal credit and your business’s credit. An SBA 7a loan, for example, is the most common loan for small businesses. For an SBA 7a, you will need a 680+ FICO score. You will need to request a credit report from all three major credit reporting agencies like Equifax, TransUnion, or Experian.

You will also need to develop your business plan. A thoroughly prepared business plan must include a complete set of projected financial statements, including profit and loss, cash flow, and a balance sheet. You will also need to submit personal and business income tax returns from the three previous years.

Some lenders also require business owners to submit legal documents depending on the nature of your business. Be prepared to submit business licenses and registrations, article of incorporation, copies of third party contracts, franchise agreements, and commercial leases.

Review Your Lending Options

For small business loans, there are a variety of lending institutions to peruse through for financing. Do some comparison shopping. Different lenders have different criteria points, interest rates, and financing.

You can choose to apply at a national commercial bank or smaller regional bank. Often small businesses have an easier time getting approved by smaller regional commercial banks. Credit unions are also an option, but you will need to be a member. If this is the case, speak with a loan officer at your local credit union about assessing your business for a small business loan.

There are also state and local economic development agencies that specialize in advancing entrepreneurialism. Non-profit organizations can provide lower interest rates than large banks, or are more willing to aid with small business owners who do not qualify for traditional commercial loans.

Prepare and Polish Your Business Plan

Once you have all the documentation, preparing your business plan will be more streamlined. A business plan is a living document that projects three to five years ahead—configuring how the business will grow revenues via your intended plan of action.

You will need to the following:

  • Projected financial statements
  • Profit and Loss statements
  • Cash flow
  • Balance sheet

From these documents develop your business plan. Use the following checklist to make sure you have included every provisional detail.

Executive Summary

This section describes your business. It should include a mission statement, founding, growth highlights, products and/or services, glimpse of financial information, and a summation of future plans for the next 5 years.

Start-ups and new businesses should treat an executive summary like a pitch. Show you have done the market research,  include your own experience, market gaps, and your vision.

Company Description

The company description expounds on the executive summary. It should include details on your business’s marketplace, an explanation of your products and/or services, analysis of consumers, and competitive advantages your business possesses.

Market Analysis

This segment segues from your company description. A market analysis provides more detail into your market knowledge. This is where you will present research findings applicable to your business.

Include:

  • Industry description
  • Target Market and Evaluation
  • Size of Market
  • Market Share Gains
  • Competitive Analysis
  • Regulatory Restrictions

Be thorough. To avoid penetrating questions during your presentation to lenders, answer them all here with a prepared course of action.

Organization & Management

What does your team look like? This section outlines your company’s organization structure, details of ownership, profiles your management team, and qualifications of a board of directors.

Service & Product Line

The emphasis in this description should be on the benefits of your potential consumers and retained customers. Focus on what your business provides that will target customers. Details about product’s life cycle, intellectual property, and all research and development should be included.

Marketing & Sales

How are you planning on driving sales and retaining customers? A comprehensive marketing strategy blueprints growth strategies, distribution, and communication to customers.

Funding Request

This includes your needs for your present request, and for the future. This section shows your intention with a loan and strategic plans for the future.

Whatever you plan on doing with your small business loan—list that here.

Financial Projections

With clear objectives, describe where you believe the financial state of your company will be going forward. Include data from the last five years. If you have not been in business this long, provide prospective financial data.

Visit Local SCORE & SBDC Offices for Guidance

Speaking with experienced executives and business experts will help ease and answer any unknowns you might have before presenting to a lending organization on your personal financing situation. Local Small Business Development Centers, or SBDCs, are part of the small business administration. Many local chapters are on nearby university campuses. You can also explore non-profit SCORE centers which offer free business mentoring from retired executives. If there are no local centers near you, information and advice are offered online.

Think of these aids as continued networking. Establishing a relationship with your local chapters opens the doors to enriching insights from small business owners who have the expertise for success.

Build Your presentation and Make Your Appointment

Once you have determined you are eligible, found a financially beneficial lending organization, and constructed your business plan, it is time to apply.

Take a proactive approach toward the application process. You will want to craft an articulate professional package with a succinct method of delivery. Data should be concise. Deliver summative information in the form of spreadsheets, charts, and graphs to quickly demonstrate your plans and knowledge to the loan officer.

From here you make an appointment and request enough time to present with visual aids. You can use large print-outs, PowerPoints, and props if necessary. If you have done your homework, this should be the easiest step. A presentation will only be as good as the preparation.

Good luck, and for more information small business loans, visit the SBA website.

 

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