The Woolly Hound: From a Personal Need to a Purpose-Built Pet Brand

Great  businesses aren’t built on luck. They’re built by people who spot a gap in the market and care enough to fill it. Through our new Beyond Small Spotlight Series, we’re highlighting the people behind those businesses: the problems they solve, the challenges they navigate, and how they’re building towards what’s next. Because ‘small’ is just where the work starts, not a limit of how far they can go.

First up is The Woolly Hound, built by Michelle and Chris Arnold, a young couple from Indianapolis, Indiana, whose passion for creating a home filled with intentional, health-conscious, and sustainable products inspired them to apply those same principles to the products they choose for their pets.

The Product Michelle Couldn’t Find, So She Made It Herself

The Woolly Hound didn’t start with a business plan. It started with a need Michelle and Chris discovered at home, and a shared motivation to embrace a healthier, more sustainable lifestyle.

After becoming more intentional about what they brought into their home, Michelle and Chris applied that same consideration to the rest of the household, including their four-legged family members.

There was just one problem: the kind of products they had in mind didn’t seem to exist in the market. When Michelle went looking for a clean, non-toxic dog bed, she found an industry dominated by synthetic foams and chemically treated fabrics. So she decided to make one herself. 

What started as a home project quickly led to a simple realization: if they were looking for something better to improve the quality of life for their pets, could other pet owners be looking for it too?  

That question led directly to The Woolly Hound, and broad industry data soon proved their instincts were right. Pet owners everywhere are spending more than ever on everyday pet wellness. 

According to the American Pet Products Association, pet industry expenditures reached $158 billion in 2025 and are projected to reach $165 billion in 2026, representing an increase of approximately 4.4% year over year. Even as household budgets tighten,  spending  on daily pet care remains resilient as owners increasingly prioritize long-term wellness.

When Handmade Ran Out of Room, Local Manufacturing Stepped In 

Turning an  idea into a real product brings on different kinds  of challenges.

Michelle initially hand-sewed every bed herself, but producing bulky items made with heavy, durable materials inside an apartment quickly proved unsustainable. Sewing each bed took considerable time, while materials and finished products demanded space the duo simply did not have.

Rather than allowing those constraints to limit the idea, Michelle and Chris rethought their entire production model.

They found a local manufacturing partner in Indianapolis to produce the covers and inserts in smaller quantities, while The Woolly Hound continued handling final stuffing, fulfillment, and shipping.

Working with a local manufacturer also added another layer of value, supporting local production while reinforcing the brand’s core focus on sustainability.

For a growing business, the arrangement offered vital flexibility. Their manufacturer was willing to handle smaller orders, deliver locally, and even store materials when space was tight.

It was also an early lesson in scale. Growth does not always mean doing more yourself. Sometimes, it means identifying which parts of the business can be outsourced so you can concentrate on what you do best.

The Hard Part Wasn’t Making The Product. It Was Getting In Front of the Right People. 

With a more sustainable production model taking shape, the focus shifted to a new priority: raising awareness.

Selling a premium product is less about standard promotion and more about education.  Customers don’t just need to see the product, they need to understand why natural materials, local sourcing, and lasting durability justify the price tag.

At first, Michelle explored local pet boutiques, but quickly realized that retail shelves make it hard to tell that story, especially for an unknown brand with a higher price tag

That shifted the focus online. Social media gives The Woolly Hound direct access to pet owners who value quality and intentional purchasing, but reaching them consistently takes work. Balancing content creation, ad strategies, SEO, and visibility across newer AI-driven tools is a full-time job in itself.

And, like many small business owners, Michelle juggles those channels on her own while keeping daily operations moving. Although Chris remains involved as co-founder, Michelle handles the bulk of the day-to-day work driving the brand forward.

Still, none of those challenges has shaken their passion and belief in what they are building. The focus now is simple:  introduce the brand to more pet owners while aligning with the right partners to support sustainable growth.

Running an Online Business Meant Finding a Bank Built the Same Way 

The search for supportive partners did not stop at manufacturing. It extended all the way to their banking.

For an e-commerce business already operating largely online, partnering with a digital bank felt like a natural fit. When Michelle began researching small business checking accounts, Grasshopper stood out not just for its digital-first model, but for practical perks like no minimum deposit requirements, a low fee structure, and the ability to earn high yields from day one.

Beyond cost savings, as the account became a core part of how she ran the business, the ease and speed of managing funds stood out immediately. Whether issuing same-day ACH payments to domestic vendors or initiating wire transfers to international manufacturers, moving money no longer slowed down production timelines.

Grasshopper has since become The Woolly Hound’s primary banking partner. Michelle and Chris rely on the digital platform to handle everything from vendor payments and Shopify payouts to everyday debit card purchases, consolidating their day-to-day finances in one, secure place.

That level of simplicity keeps the focus where it belongs, building the business rather than managing the processes behind it. Plus, those efficiencies become even more meaningful as The Woolly Hound enters its next stage of growth. 

Having already invested substantially to bring its first products to market, Michelle and Chris are looking ahead to broader marketing campaigns, new product development, increased inventory, hiring, and eventually a dedicated physical space.

Meeting those ambitions will require more than capital. It will also mean building relationships with partners who understand the realities of running a small business and can adapt as its needs evolve.

Thoughtful Design, Ambitious Growth

At The Woolly Hound, early growth isn’t measured solely by how fast sales roll in. Selling a premium product requires earning customer trust first and helping people understand the true value of what they are buying. Right now, Michelle and Chris are paying close attention to word of mouth referrals, social engagement, and customer feedback that signals pet owners recognize the craftsmanship and care behind every bed. 

Even as the business scales, the work will always remain deeply personal. No amount of growth will replace the simple desire to do right by the pets sleeping on these beds.

For small business owners building towards something bigger, The Woolly Hound serves as a powerful reminder that starting small doesn’t mean thinking small, and growth doesn’t have to come at the expense of what made your business special in the first place. Protect the standards that earned your first customers, then find the right partners to help you uphold them as you scale.