It's raining cats, dogs on women-owned Valley businesses

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The Arizona Republic

Yvette Armendariz


Kelly Rude drove all around the Valley looking for unique toys and accessories for her dog, a golden retriever she rescued named Cody, when it dawned on her that she ought to open her own store stocked with what she wanted.

"I realized I'm the market, and there are lots of other people like me who are shopping for their pets," said Rude, 44, a former corporate training consultant who opened Fur-Kids Pet Boutique last November in north Scottsdale.

A similar passion for shopping for her dogs Greta and Frida gripped Jennifer Houde, 32, a Valley attorney. She launched Greta's Pet Boutique 18 months ago in Phoenix. advertisement




"I needed to take a break from being a lawyer, and I really wanted something where I could hang out with my dog and shop with her," Houde said.

Rude and Houde are just two of many Valley women who have jumped into the $38.4 billion pet industry recently, which is expected to increase by 7.4 percent this year, according to the American Pet Product Manufacturers Association.

The boom in pet products and services has spawned a slew of independent businesses in recent years, many run by women. It's not just dog day care and grooming; it's dog massage, bejeweled collars, elegant bedding, snacks and supplements sold through stores of all sizes and on the Web.


Dream to reality


Houde invested about $50,000 in launching Greta's. The money came out of savings from her five years of working as a full-time lawyer representing business cases. For six months, she worked 10 hours a day billing clients, followed by a few hours researching innovative products for her four-legged friends and developing a business plan. Last year, the dream became reality when Houde opened her store.

Kelly Rude got her pet boutique off the ground with several thousand dollars from an inheritance.

The neighborhood has responded enthusiastically to her venture, and she's turning a small profit with three employees, she says. Everyone brings his or her dog to work.

To set her store apart from the competition, Rude scours the marketplace for products not carried by other retailers. She has small novelties and dog carriers that cost as much as $500 each; she also carries $70 dog dresses that locals sew.

"This store is all about extras, not essentials," she said.

A recent promotional stunt has helped boost business: Each Friday, Rude hosts a happy hour with free wine and other beverages for adults and treats for dogs.


A fierce business


The industry of pet products may be growing, but it's still a competitive arena for small-business operators, Houde says.

"It's a slow progression," she said. "A lot of people go in and out of business."

She's vague about her sales numbers but says business is growing, despite construction of Phoenix's light rail nearby.

Houde also opened a law office of her own recently. She sees the practice as helping her with cash flow when the retail side cycles downward.

Eileen Proctor is top dog at It's a Ruff Life! Dog Daycare and Activity Center and Bow-Wow Beautification Centers grooming service. She is starting to see rewards from the business of dog day care. After six years and a $100,000 investment, she finally will net seven-digit sales this year. Proctor now is licensing her business model to other operators.

The $1 million mark didn't come easy. Proctor opened her first 7,500-square-foot dog day-care business in 2000 using her equity line and personal savings. She thought she could break even in four months because dog lovers would find care for their "children." It took a year to reach a profit.

"It's a difficult industry. That's the story more often than not," Proctor said. "People are jumping on the bandwagon to get a piece of the purchasing dollar."

That includes the big guys. PetSmart and Petco, estimated to control 29 percent of the market for pet services and supplies, continue to break ground on new stores.

Wal-Mart has announced a goal of controlling 30 percent of the pet-supply market within five years. Designer brands also are chasing the business; Gucci offers jackets for dogs in the $200 range, with dog carriers that cost about $700.

Although pets are her passion, Proctor, 48, said, "My business is not about petting puppies. I'm finding a lot of people who like animals go into this industry, but they don't think about the complicated laws, accounting, liability."

Dog day care in Arizona is not regulated, but kenneling is, Proctor says. Also, the pet-resort business is watched closely for sanitation and occupancy codes, she says.

Laurel Todd, 50, found dog day care to be less than lucrative. Ten months after opening Pooches in Paradise in Tempe, she closed the business. She started a second business making dog agility equipment after a friend saw a prototype.

"I was swamped with orders," she said.

Margins were better with the new product line, but competition increased, putting pressure on pricing. A back injury solidified Todd's decision to get out of that business. Still, she isn't giving up. After four years of trying to make it in the dog business, she's now working on developing a dog-related Web site.


For the love of dogs


Pet businesses can thrive, though, when the right service meets the right market.

Frances Windfree, 44, believes service and price have helped her expand her customer base since she took ownership of Dog Days Dog Day Care and Boarding in Tempe, which she bought for $100,000 at the beginning of the year. She estimates business has grown 10 percent since she took over. Clients now number about 385.

"I think the fact that it's an open environment helps," she said. "They get to spend the entire day not caged but playing all together."

She doesn't call the business recession-proof, but as long as people keep pets, Windfree expects business to grow.

Estella Westphal launched Estella's Pet Sitting from her 3,300-square-foot home off Happy Valley Road in June 2005. Because she wanted to run the business from home, she focused on presentation and invested about $1,000 in business cards, a Web site and service contracts.

Business is steady; Westphal pulls in an average of $2,500 a month watching primarily dogs. During the holidays, sales were about 40 percent higher.

She watches as many as 12 pets at once, who get free roam of the house. Vacuuming and sweeping are regular tasks, as are belly rubs. Westphal says a big distinguishing factor of her service is that she is bonded and carries insurance.


Niche within a niche


Layne Kizler, who had a 15-year career in the wine business, is going after the pet-travel niche. Last September, she started Travel Hounds, an online store based in Phoenix that sells travel gear, beds and agility toys.

Kizler, 47, got the idea from her own experience. She couldn't put her dog Oliver in day care or with a sitter because he couldn't walk. So she took him on her trips using a baby stroller, collapsible crates and covers.

"I've always been a dog lover, but there wasn't really money in the pet business before," she said.

That's changed in the past five years because now pets are considered part of the family, she says. It also helps that pets increasingly are accepted at hotels, including luxury spots such as the Ritz-Carlton and Four Seasons.

Kizler invested $30,000 to get started. She anticipates making $150,000 to $200,000 in sales after the first full year. For now, she doesn't draw a salary.

Barbara Thulin Joyce, 45, is an experienced designer who is building royal bedding for pets via her business, Decadent Digs. The former food stylist for Fairytale Brownies made kitty pillows that sold on consignment. By December 2003, she focused on making high-end beds.

Joyce invested about $30,000 for materials and industrial sewing machines. Last year, she pulled in $26,000. Through March of this year, she's sold $11,000 in products.

"It's still a labor of love," she said, adding that she spends 90 hours a week making and marketing products. "It's just that I need the capital to get it to the next level."




Spoiled pets


The growing number of empty-nest baby boomers and young professionals who have delayed having families is helping the industry grow, according to the American Pet Products Manufacturers Association. The result: Higher-income people humanizing their pets and pampering them with designer togs and high-tech services.

Grace Granatelli believes her pet-massage business can thrive once she goes at it full time. An office manager for a financial consultant, Granatelli began Pawsitive Touch therapeutic massage three and a half years ago.

She envisioned canine massage and invested nine months and $5,000 to $10,000 into her education in different techniques, including getting certified in equine massage, essential oil inventory and home offices setup.

"Pets take on what their owner feels, their anxiety and their stress," Granatelli said.

They also need therapy after injuries, she notes. Currently, she provides five to eight massages weekly, which bring in $15 to $85 per session.

"I'm running into more and more people starting a business like this," Granatelli said, but she welcomes competition. "I think there are plenty of pets to go around."