Many pets are considered part of the family in the eyes of their owners, and this has been one of the main reasons why the pet industry has vastly expanded in the last decade. The American Pet Products Association has tracked a growth in pet-related expenditures from $23 billion in 1998 to more than $43 billion in 2008. You too can cash in on this growing profit area by learning start a pet supply store.
Instructions
1. Decide which pets you'll serve. The common pets for most people are dogs, cats, fish, birds and hamsters or gerbils. You can be an all-purpose pet supply store catering to all these animals, or you can choose to specialize in one or two specific types, such as fish or dogs. Although the first option makes your store marketable to the majority of pet owners in your city, the latter may make your store more respected as the place to go if you have a specific type of animal. This is due to the fact you can offer more products that cater specifically to these pet owners than an all-purpose store can.
2. Find or make pet supplies to sell. Most people who open pet supply stores don't make the products themselves. Instead, they purchase them from a manufacturer at a wholesale price. However, if you have great ideas for pet supplies that you can make, you can usually increase your profit margin more than you can by buying product.
3. Complete the forms to register your business. The different levels of government require you to register your business with them. For your state you'll need to register your business with the department of revenue because you will be collecting sales tax on the products that you sell. Most local governments also charge sales tax, so you will need to register with them as well as with the IRS at the federal level.
4. Find a facility. For a pet supply store you need to lease or purchase a commercial or retail space. Ideally you want a location that is convenient and easy to get to for customers. In addition you'll need to decide in advance how much space you need and find a building or unit that is big enough and affordable.
5. Determine your markup. It is important that you figure out how much it will cost to run your business in order to determine what your markup on pet supplies will be. The markup should be high enough that you make a profit after all your expenses are paid. However, you don't want the markup to be so high that you're not comparable to your competitors.
6. Hire staff for your store. Unless you're planning on being open only Monday through Friday for eight or nine hours each day, you'll probably need to hire staff to assist you in your store. Ideally, you should seek out individuals that are reliable, friendly and love animals.
7. Promote your business. Getting the word out about your pet supply store is important in order for it to be a success. There are a number of different advertising methods you can use, but you may find it more beneficial to target pet owners specifically. This can be done by partnering with veterinarians, animal shelters, pet salons, kennels and local pet groups.
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