What are the typical gross and net profit margins for firms within the industry?
The pet van business can be discussed as part of the developed mobile grooming industry which becomes more profitable in the United States. While referring to the average numbers related to the mobile grooming industry and pet van business, it is possible to note that the most successful businesses can earn more than $500,000 as of the annual gross income. Thus, their net incomes can be estimated as more than $100,000 a year. However, it is important to note that start-up companies in the sphere of pet van business are expected to have only $20,000 a year as the net profit because of the necessity to advertise the services, to gain customer loyalty, and to contribute to the company’s reputation (“PetGroomer: Business Planning Menu”). Furthermore, the amount of gross and net profits for the pet van business is different while discussing the provision of services in rural and urban areas.
The start-up operating in the field of the pet van business should focus on purchasing a new or a previously used van. Having analyzed the trends in the industry’s development and companies’ income statements, it is important to note that to receive the expected net profits, the owner of the business should have more than $50,000 in order to cover the company’s assets and expenses. The assets are associated with the start-up’s vehicle and necessary equipment (“PetGroomer: Business Planning Menu”). The expenses are associated with the required smaller equipment, licenses, and advertising. To cover the expenses and to receive the expected profits in a year, the start-up should focus on loans and investment (Duea 217). During the first year of the business’s practice, the company can work at a loss.
What is the ‘news’ from the industry?
In recent years, the mobile grooming industry and pet van businesses are typically growing because of the increased interest of the pet owners in the provided services. The main social factor which influences the development of the industry is the pet owners’ focus on the high-quality services for their pets and on the comfort of using mobile grooming or pet vans in order to treat the pets effectively. The firms within the industry are expected to have $80,000-$100,000 net profits annually because more people choose mobile grooming as the alternative to traditional salons. The focus on the pet van business responds to the current trends within the industry because of the opportunity to receive more profits while providing the services in transporting pets or mobile grooming (“PetGroomer: Writing a Mobile Grooming Business Plan”).
Today, mobile grooming is as actively used as the transportation of pets in vans to salons. The specialists predict a further increase in the customers’ interests in the offered pet van services and mobile grooming because of the focus on comfort for the owners and their pets (Daily 208-210). Nevertheless, it is important to note that this business sector actively develops only during several recent years, but the competition within the industry is rather high depending on the fact that it is rather difficult to attract more clients and advertise the services effectively. Furthermore, more attention should be paid to developing the pet van business in rural and urban territories because of the differences in the number of clients and specific demands.
Works Cited
Daily, Frederick. Tax Savvy for Small Business. USA: Nolo, 2009. Print.
Duea, Angela Williams. How to Open and Operate a Financially Successful Pet Sitting Business. USA: Atlantic Publishing Company, 2008. Print.
PetGroomer: Business Planning Menu. 2012. Web.
PetGroomer: Writing a Mobile Grooming Business Plan. 2012. Web.