How do I check what a dog grooming business really earns?
Check what a dog grooming business really earns by matching the booking system’s appointments to the money that reached the bank, then taking out the pay the owner’s own grooming would cost to replace. Look at how groomers are paid, what retail add-ons contribute, and how the year rises and falls.
The profit on a seller’s statement is a starting point, not an answer. A grooming salon often runs on one person’s hands, and the books may not show that. Your job is to rebuild the picture from records you can check independently: the appointment calendar, the deposits, the payroll and the supplier bills. Do it with your accountant, and treat anything you cannot tie back to a record as unconfirmed.
Tie appointments to deposits
Ask for an export from the booking system covering a full year, then compare a few months of it with card-processor reports and bank deposits. Every appointment that was completed should leave a trace. Look at how often clients rebook before they leave the chair, how many appointments are cancelled or missed, and whether cash sales are recorded anywhere. Gaps between the calendar and the bank are questions for the seller.
Separate the owner’s chair time
If the owner grooms most days, part of the profit is really wages. Ask how many hours the owner works on the table, and what it would cost to hire a groomer for those hours. Unpaid family help works the same way. Your accountant can test this by removing those costs and comparing the result with the records.
Look at pay structure and extras
Groomers are paid by commission, by wage or by a mix, and the structure changes what stays in the business. Ask what each groomer earns and whether they bring their own clients. Then look at retail add-ons such as shampoos and treats, and at charges for matted coats or difficult dogs. Finally, compare busy and quiet months, since holidays and shedding seasons can distort a single strong quarter.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- Expert answerWhat should I check before buying a pet grooming business?
- GuideBuying a pet supply store in Canada
- Expert answerWill the technicians stay after I buy an auto repair shop?
- Expert answerDo supplier rebates and loyalty programs transfer when I buy a retail store?
- Expert answerHow do I check what a dog walking business really earns?
- Expert answerHow do I find a dog walking or pet sitting business for sale?
- Expert answerShould I buy a mobile dog grooming business or a grooming salon?
- Expert answerHow do I find a dog grooming business for sale?
Selling
Legal
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentWhat is EBITDA?
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.