Financials
Ballpark, what’s my buy-in expense for a license?
The typical Trade Area (territory) is typically $15,000 – $35,000 for a one-time license fee (owner training and equipment is an additional launch cost; see Capital Commitment section for information on start-up expenses).
Why a range in fees?
The difference is in whether you pay the fee in full or submit a down payment of $15,000. The Fee balance may be financed over an eighteen (18) month period at an Annual Percentage Rate of 16%, on approved credit.
Do I need a minimum net worth to be licensed by SMS?
Yes, at least $50,000USD plus liquidity of $20,000USD.
What do you expect I would gross my first year?
That’s impossible to forecast without knowing your professional abilities, your intended market, your business plan, your work ethic, your sales ability, your exit strategy, your experience, your staffing plan, your business model, and much more. Everyone has a financial litmus test of what they consider to be satisfactory in terms of gross sales for a business. In fact they seek out business opportunities they see as pulling in “X” dollars in the first year and “Y” dollars annually in the future. Realize, too, it’s what you net, not what you gross in sales that matters in the final analysis. The margins for dog obedience training are above average, whether you operate out of your home or a commercial center. Overhead is manageable since your revenue is generated from your time with a client and their dog. You can expect to gross $450-1600 from a client when you train at the client’s home. Training is an hour per session with any number of sessions per client. Some owners individually do five or more sessions and work six days a week on average (more if you are adroit in sales, add staff, etc.).
