Pet Care Prosperity: Tips From Seasoned Pros

First Financial Bank

First Financial Bank’s Dr. Schwanda Flowers chats with Joe Zuccarello on the “Hey Joe” podcast to highlight tips for those looking to start or expand their pet care business.

The pet care industry is an incredibly rewarding one, however it comes with ample challenges and obstacles that demand more than a passion for our favorite furballs. It requires financial strategies, impeccable planning, and choosing financial partners that have “walked the walk.” In a recent conversation with Joe Zuccarello on the Hey Joe Podcast, First Financial Bank’s Dr. Schwanda Flowers (Managing Director and Loan Officer) chats about financial strategy, driving growth, and finding the perfect financial partner for pet care business owners.

Below are main takeaways to consider as you’re looking to start your own pet care business, or to diversify and expand your existing one.

1. The Importance of Strategic Financial Planning

Financing must always be strategic, with the ability to distinguish ‘good debt’ and ‘bad debt’. Good debt leads to increased revenue, operational efficiency, and/ or higher profitability, providing a positive ROI. Whereas bad debt drains resources without adding significant value.

Every financial decision must answer one key question: How will this increase my bottom line?

2. Diversify, Diversify, Diversify

A key element of the podcast chat was diversification. There’s grooming, daycare, boarding, training and more. The more you can diversify revenue streams, you’ll reduce risk and stabilize your business. As Joe points out, one piece of negative news from the media (such as a recent piece that dissuaded dog grooming) can impair certain parts of the business. Luckily, this was short-lived. However, these market fluctuations can be better controlled by a well-diversified business. When investing, we hear about having a well-diversified portfolio, which should also be applied to running a successful pet care business.

3. Working In the Business Versus Working On The Business

There is a massive importance in finding the right people, and continuing to invest in their training. As Schwanda states, “once you start growing that business, you really need to think about taking a step back, putting key people in place, so that you can spend your time actually on the business instead of in the business, and you can focus on areas and what needs to be done.”

4. Expand With a Plan

When adding new pet care services, or opening additional locations, Schwanda highlighted that SBA loans can be helpful for financing growth. SBA loans can be complex, but First Financial Bank can help demystify the process and help navigate you through the best options. “There’s a huge advantage right now with SBA, with expansions. Small Business Administration loans provide expansions with zero money down”, says Schwanda.

There’s also stipulations a pet care business owner needs to consider. For example, it must be a ‘true expansion’ with the same business owners with similar NAICS codes. The SBA is built to support and nurture small businesses, so while there are many nuances, First Financial Bank can help businesses navigate the complexities.

Expansion is inherently rooted in First Financial Bank’s culture. The first loan actually came from a veterinarian looking to expand to a pet care business. Schwanda states, “they were actually a veterinarian and wanted to expand and open a pet care facility with boarding. That was the first person that came to us and said, ‘hey would you think about doing a loan for this business’, so I did a ton of research, and then we really sort of dove in. We just jumped in with both feet. And, you know, we absolutely love the space!”

5. Exit Stage Left

It can be difficult to think about proper exit strategies while in the day-to-day minutiae. However, Schwanda goes into depth around its importance. There are many different ways to exit; selling the business, passing it along to trusted family members, or transitioning to a different venture. Regardless of what makes most sense for you and your business, it’s imperative to always keep this in mind, as your current financial bookkeeping may impact the viability of the exit.

“You should have about a three year exit plan, like a true exit plan. If I’m going to be ready to exit three years from now – here’s what I’m going to do” recaps Schwanda. This allows time to address operational advantages (as well as disadvantages), and ensuring your financial information is updated and attractive to potential buyers.

6. Not Letting Emotions Cloud Judgement

People love pets – we get it. Many pet care businesses start as a labor of love, but Schwanda warns against not allowing emotions to cloud judgement. Decisions need to be based upon objective data and financials. Passion should always be a primary driver in any business, but treat that as the fuel that propels the business, while data serves as the ‘nuts and bolts’ for key decision-making.

7. We’re In This Together

Schwanda states the importance of lifting up the pet care industry as a whole, which echoes the First Financial Bank Approach. “We want the industry to be successful. We want the owners to be successful. You can have a conversation with us. If you decide to go somewhere else, or you have a different lending partner, that is perfectly fine. At the end of the day, we want people to have answers to their questions. Schedule a time. Let’s sit down and talk. We are happy to have those conversations and provide insight about what we’ve seen, what products we know are out there and available from us or even from others. But let us help you.

Final Thoughts

Running a pet care business requires financial acumen, finding the best people, diversifying, being passionate while keeping data-driven decisions at the forefront, while always thinking about ways to expand, as well as exit.

First Financial Bank offers financial expertise, but also way more. They offer partnership, guidance, and will be a group that shares your passion. As Schwanda concludes “Let us help you. As you work, don’t sit there with unanswered questions. Know you can seek some of those answers. In that financial and lending realm – we would love to be that resource.”

Chat with Dr. Schwanda Flowers and team to learn how First Financial Bank can help you start, grow or expand your Pet Care business.

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