Every grooming business owner can potentially boost their income with distributorship and affiliate programs. Franchises offer an established path into business ownership. Licensing opportunities are growing too. Today there is a program to open or expand a pet grooming operation into a school of grooming. In this section our goal is to keep you informed of existing and new opportunities as they arise.
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Pet Care Franchises
The franchisor maintains uniform practices as outlined in the franchise agreement. The International Franchise Association, the major trade association in the field, defines franchising as “a continuing relationship in which the franchisor provides a licensed privilege to do business, plus assistance in organizing, training, merchandising and management, in return for a consideration from the franchisee.”
The primary purpose of a franchise is to minimize risk in starting a new business. Studies of franchising stand behind this assessment. Starting up a new business is risky. Most studies show that over 90% fail within three years. The primary reason that the failure rate is so high is because the owners have to go through the learning curve of operating that specific type business. Unfortunately, the market place is not very tolerant of the inexperienced neophyte trying to learn how to operate a new business. If you can’t compete in the market place, your business performance can hurt your personal and business finances, even severely. Franchising can reduce this risk with its many advantages.
Studies indicate that franchise business startups rarely fail and when they do it is typically because the franchisee did not stick to the franchisers systems. In all human endeavor there is involved a learning process . This learning process requires going through a series of trial and error encounters wherein knowledge is gained by trying and failing, trying and failing again and again and eventually trying and succeeding.
This process is generally called the learning curve. In the context of franchising, the franchiser has already gone through the learning curve and has learned the secrets of success for the specific business. In business format franchising all that has been learned by going through the curve is transferred to the franchisee. This is fundamentally why you buy a franchise, to minimize risk and give yourself the best possible chance to succeed.
With a new business startup that is not a franchise you may be operating in the dark. This is why we have recommended a formal grooming business plan, yes even for small grooming shops. Franchisors often provide a lot of information similar or much the same as a business plan to their franchisees, and that allow the franchisee to research their potential before they invest heavily into their new business. No matter how much research you do it is very difficult to get a handle on so many aspects of the new business.
With a franchise the franchisor is a wealth of information about the business from how to prepare a pro forma to the best personality traits for the business. But the most important information comes from the existing franchisees. With a good systematic approach you can get answers to nearly all the really key questions. You want to ask questions such as, “Do you feel I am adequately trained to groom and operate this business?” “How long before I can expect to break even, and what is the annual return on investment?” Think of a franchise as the opportunity to try on the business to make sure it fits you. Study your franchise and take advantage of being able to ask the experienced franchisor all of your questions.
In summary the primary reason you should buy a franchise as opposed to starting up a non-franchise new business, is to minimize risk and enhance your chances of success.
Sometimes there are alternatives to franchises that involve a licensing opportunity. Proprietary materials are provided to you along with some services in return for compensation. Typically with a franchise your business will have use the company branding such as operating as Aussie Pet Mobile, whereas some licensing opportunities may not offer that facility, and you can operate under your selected name yet have access to other intellectual properties and services by the licensor, such as management planning, school curricula, etc.
Distributorships & Affiliate Programs
Perhaps you’ve heard of the expression, “Expand Your Revenue Sources” with other sales opportunities. While you’re grooming you can be selling products and services expanding your business income.
It’s a great business concept, and the meaning is simple. You work hard to earn sales income by selling your grooming services. There’s only so much time every work day to groom and thereby earn grooming revenue (income).
Earn more income selling products or services in addition to your grooming services. For example, you can sell various products or non-grooming services to all of your pet owner clients, or perhaps you have something to sell to other groomers.
For decades, pet I.D. tags has been a popular money booster for groomers. ♦