TIPS for From Problems to Profits

Some grooming business owners are dismayed that we recommend saving $10,000 as a cash reserve for their businesses in a business savings account. We even heard some groomers say, "I closed the book when I read that!" Whoa! Let's not get so emotional here! Is that a businessperson that grooms thinking?

You may have never saved that amount, but millions of small one person business owners have done that time and again. Sometimes for the first time. In fact, it is absolutely ordinary for the large majority of small business owners, and anyone can do it. Perhaps it is getting over the hump so to speak for you, it is in fact a limitation to conquer joyfully. Let your business do that for you. Start by looking at it this way, it is not YOUR savings, it is the savings of THE BUSINESS. There is an important difference.

Here's some good news. You may not have to save all of the cash reserve. Some readers have saved only a portion of it and safely moved onto Step 2 (Chapter 4). They shared their experiences with us. By using the Madson People and Pet Marketing Program and the Preferred Client Program they generated so much business they were turning away new customers daily. Since they had the demand they moved onto Step 2 and hired an Assistant Pet Trimmer (groomer) or filled the position by promoting a pet bather into the position.

Instead of using their cash reserve to initially help with the increased payroll costs for the new employee, they put money aside each day to account for the Assistant's wages and payroll taxes. In a nutshell, they operated "on the fly" in the beginning of Step 2.

So you see, there is a way to move onto Step 2 without having saved the full cash reserve. Don't give up though. We still recommend that all grooming business have a business savings account for emergencies and future growth.