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How to Start a Dog Food Business in 14 Steps (In-Depth Guide)

Updated:   February 1, 2024

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As of 2021, the global pet food market was valued at $110.53 billion. With a compound annual growth rate (CAGR) of 5.11% between 2022 and 2029, it’s not a bad time to get your foot in the door.

As more owners consider pets part of the family, demand for high-quality, specialized pooch food has skyrocketed. This creates an exciting opportunity for aspiring entrepreneurs looking to tap into the lucrative pet care space.

In this guide, we’ll discuss how to start a puppy food business. Some of the topics we’ll cover include market research, competitive analysis, registering EINs, researching business insurance, and how to connect with customers in the pet food industry.

1. Conduct Dog Food Market Research

Market research is the first step to developing a well-balanced budget and pet food business plan. There are two types of market research in the pet food industry, primary and secondary.

Primary market research is information you find yourself. This might include visiting local shops to review balanced pet foods or starting a social media poll to learn what pet food is most popular.

Secondary market research is information gleaned through a third party. It might include data compiled by American feed control officials, or government statistic websites.

Some of the things you’ll learn through pet food market research include:

• Niche products: Products that offer customization, novelty, or solve needs like allergies and digestive issues also have high growth potential.
• Market trends: Raw food, limited ingredient diets, and fresh-delivered meal plans are rising in popularity.
• Target market: More young professionals opt for pets over children.
• Drive in the industry: The humanization of pets also means owners are more involved in pet diets and willing to pay more for healthy, natural options just as they do for themselves.
• Popular markets: E-commerce and digital are integral to tapping today’s pet owners.
• Market barriers: Formulating recipes that meet canine nutritional requirements takes R&D expertise. Navigating FDA regulations and securing safe manufacturing requires significant capital.

With proper planning, key partnerships, and a commitment to quality, new entrants can find their niche. Thorough market research provides industry details to start on the right foot, including pet food packaging, pricing, and services.

2. Analyze the Competition

A thorough competitive analysis is crucial when entering the crowded dog food industry. Start by identifying competitors locally and branching out to online and national competitors.

Here are some ways to keep an eye on the growing competition:

• Visit in person: Drive around town and take notes of existing pet retail locations.
• Visit websites: Research competitors more broadly by studying their websites and online listings.
• Check out local pet food products: Pay attention to product range, pricing and promotions (e.g. free pet treats ), brand personality, and messaging.
• Sign up for emails: Subscribe to emails and follow social channels to get their latest news and offers.
• Get alerts: Sign up for Google Alerts on competitor names to regularly capture news on their latest products.
• Stay focused: Read pet industry publications and pet food reviews on influential blogs and websites like Dog Food Advisor .

By investigating competitors inside and out, you gain invaluable insights to hone your unique value proposition and carve out your niche in the puppy food space.

3. Costs to Start a Dog Food Business

Starting a pet food business requires significant upfront investment to get your operations up and running.

There are many costs encountered when you start a pet food business, including startup and ongoing costs. Let’s break down the different costs of running your own pet food business.

Start-up Costs

Startup costs are the early expenses you encounter trying to get your business off the ground, including:

• Business registration fees – $50-$500 to form an LLC
• Commercial kitchen equipment – $5,000-$30,000 for industrial mixers, extruders, and convection ovens
• Kitchen build-out – $20,000-$150,000 to construct a commercial kitchen if you don’t lease a turnkey space
• Ingredients – $2,000-$5,000 for an initial inventory of proteins, grains, produce, and supplements
• Packaging – $1,000-$5,000 for bags, cans, pouches, boxes, and labels
• Website – $3,000-$15,000 for e-commerce site development and design
• Marketing – $2,000-$5,000 initial spend on brand messaging, logos, and initial digital ads/promos

Total start-up costs can easily exceed $100,000 for a comprehensive pet food operation. Initiating a smaller-scale or online-only business can reduce the initial capital needed.

Ongoing Costs

Ongoing costs are the expenses you encounter throughout the life of the business. Some common expenses in the pet foods industry include:

• Rent – $2,000-$10,000 depending on kitchen size, warehouse space, and office
• Ingredient supplies – $5,000-$20,000 to replenish proteins, produce, supplements
• Packaging – $1,000-$5,000 for replenishing bags, cans, boxes
• Labor – $4,000-$12,000 for 1 to 3 kitchen staff including food safety manager
• Insurance – $1,000 for commercial business policy
• Utilities – $500-$2,000 covering gas, electric, waste disposal
• Marketing – $500-$2,000 for digital ads, social media promotion
• Other – $500-$2,000 for miscellaneous needs like cleaning, maintenance, office supplies
• Accounting services – $1,000-$5,000 for tax prep and financial statements
• Legal fees – $500-$2,000 for contract reviews and general counsel
• Equipment maintenance – $1,000-$5,000 for servicing and repairs
• Regulatory compliance – $1,000-$4,000 for licensing, permits, audits
• R&D/Quality testing – $2,000-$10,000 for recipe formulation and lab tests

Securing ample start-up capital and planning for ongoing overhead is imperative. Costs quickly add up but can be managed through careful growth strategies and cash flow planning.

4. Form a Legal Business Entity

To run a business in the animal foods industry, you need to form a legal business entity. There are four main types of business entities to choose from, including:

Sole Proprietorship

A sole proprietorship is the simplest and most common structure for small businesses with one owner. You can form it instantly just by starting your business activities. However, the owner has unlimited personal liability for debts and legal actions against the business.

Partnership

A partnership lets two or more co-owners operate a pet food business together. General partnerships offer minimal paperwork but still impose unlimited liability on partners. Limited partnerships allow for a mix of general partners overseeing operations and limited partners acting as silent investors.

Limited Liability Company (LLC)

Forming an LLC provides pet food entrepreneurs critical protections by separating their assets from the business. It limits legal and financial liability while allowing business income and losses to pass through to the owners’ tax returns. Starting an LLC is more involved than a sole proprietorship but simpler than incorporating.

Corporation

Establishing a pet food business as a corporation creates a distinct legal entity. It offers the strongest liability shielding for owners but requires the most extensive recordkeeping, reporting, and governance obligations. The double taxation of dividends and corporate income often negates potential tax benefits for small businesses.

While corporations can sell stock and provide the greatest access to investment capital, an LLC can also attract investors. The substantial formalities make a corporation unwieldy for most pet food startups.

5. Register Your Business For Taxes

Obtaining an Employer Identification Number (EIN) is crucial for registering your pet food business and opening business bank accounts. The EIN acts as your business’s Social Security number for tax purposes.

You can easily apply for an EIN for free directly through the IRS website . The online application only takes minutes to complete. You will need to provide basic information about your business structure and ownership. The IRS will then immediately issue your EIN upon submission of the application.

In addition to an EIN, you must register with your state to collect any required sales tax on dog food transactions. The process varies by state but typically involves submitting a registration application along with a fee to your State Department of Revenue or Secretary of State office.

To register, you will need details on your business activities in the state, ownership/management structure, and projected taxable sales volume. Review your state’s Department of Revenue website for specifics on registering. Costs range from $10 to $150 depending on the state.

6. Setup Your Accounting

Proper accounting is crucial for any dog food business to track finances, run efficiently, and remain IRS compliant. There are different avenues to take to support finances in pet food businesses, including:

Accounting Software

Using accounting software like QuickBooks streamlines reporting and automates tasks like tracking income and expenses, generating invoices, and reconciling bank/credit card transactions. QuickBooks integrates with bank accounts to import the latest transactions, allowing you to categorize everything for detailed reporting.

Hire an Accountant

Hiring an accountant is wise for optimal financial oversight. A qualified accountant provides services like:

• Bookkeeping – Recording income/expenses, processing payroll, tracking sales tax
• Cash flow analysis – Preparing cash flow statements to inform business decisions
• Budgeting – Establishing budgets for tracking and cost control
• Tax prep – Filing quarterly/annual tax returns to comply with IRS
• Auditing – Assisting with audits if questioned by tax authorities

Expect to invest at least $1,000-$5,000 annually for an accountant depending on level of involvement. Their expertise saves you headaches during tax season and all year round.

Open a Business Bank Account

Keeping personal and business finances 100% separate is crucial. Open a dedicated business checking account and credit card solely for dog food transactions. Never co-mingle personal and business funds.

Apply for a Business Credit Card

Apply for a business credit card using your EIN. Issuers will determine your credit limit based on business income and assets vs. your score. Carry a monthly balance below 30% of the limit to build business credit.

7. Obtain Licenses and Permits

Before selling any pet food products, it is crucial to obtain all required federal, state, and local licensing. Check with the U.S. Small Business Administration for federal permits. You can also use the SBA search tool for local licensure.

At the federal level, you must register your human-grade dog food manufacturing facility with the U.S. Food and Drug Administration (FDA). Registration typically costs a few hundred dollars initially plus an annual renewal fee.

Your commercial kitchen must comply with FDA Current Good Manufacturing Practices (CGMPs). These regulations dictate sanitary production, process control, and record keeping. Investing in CGMP training for your staff is wise for federal regulations in animal nutrition.

At the city level, you may need both general business licenses and industry-specific permits. For instance, Los Angeles requires all businesses to obtain a Business Tax Registration Certificate .

8. Get Business Insurance

Adequate insurance is necessary to protect your dog food business from lawsuits, property damage, and other liabilities. Being underinsured opens you to substantial risk.

For example, a significant kitchen fire could destroy your facility without business property insurance. An injury lawsuit from a delivery driver could bankrupt you if you lack sufficient liability coverage. Even a false claim that your products caused a pet illness creates legal and PR headaches without protection.

The right insurance reduces risks in key areas:

• General liability – Covers injury and property damage claims
• Product liability – Safeguards against lawsuits if pets get sick from your food
• Commercial property – Repairs/replaces assets after damage
• Business interruption – Reimburses income lost due to disruptions
• Commercial auto – Protects vehicles used for deliveries
• Workers comp – Covers injuries employees sustain on the job

Work with a qualified insurance broker to review needs and obtain quotes. Expect to pay $1,000 to $5,000 annually depending on your coverage. Purchase a policy at least 30 days before opening.

When applying, you will need to provide details on operations, products, revenue, payroll, and more. Insurers will want safety protocols and licensure confirmed. Undergo required inspections of your kitchen facilities.

9. Create an Office Space

Having a dedicated office is beneficial for dog food entrepreneurs to separate work and personal life. It also provides a professional environment for tasks like bookkeeping, strategy meetings, employee onboarding, and phone calls with suppliers.

Home Office

A home office works well initially as it has no added costs. Dedicate a room with a door to maintain work/life boundaries. Furnish it with office essentials like a desk, computer, filing cabinet, and phone. However, home offices can feel isolating and distracting for some.

Coworking Office

Coworking spaces like WeWork provide amenities like private offices, conference rooms, and office equipment. You gain networking opportunities by being among other entrepreneurs and small business owners. Expect to pay approximately $300 to $800 monthly for an office rental.

Retail Office

If selling from a storefront, consider adding a back office for administrative tasks. Customers see this as more professional than working from a laptop in the front. Just be sure to soundproof walls to minimize distractions during calls. Budget about $3,000 to $10,000 for build-out costs.

Commercial Office

Leasing traditional office space in a commercial building brings the most legitimacy when meeting with major retailers and distributors. Expect to pay $1,000 to $1,500 monthly for an office large enough for 3 to 5 employees. Sign shorter lease terms in case you expand into a larger production facility.

10. Source Your Equipment

Launching a dog food venture requires commercial-grade equipment like industrial mixers, extruders, dehydrators, and convection ovens. Here are tips for acquiring the necessary gear based on your budget and priorities:

Purchase brand-new appliances directly from manufacturers like Webstaurant Store . Expect premium prices, often thousands per machine, but you get warranties plus the latest features and technology. Vet suppliers thoroughly to ensure equipment meets your production needs.

Buying Used

Search restaurant auction sites like BidOnEquipment or commercial kitchen brokers like Katom Restaurant Supply to find quality gently used equipment at 40-60% savings versus new. Inspect items carefully before purchase and ask detailed servicing questions to avoid machines in disrepair.

Initially renting equipment allows you to test products without huge upfront equipment investments. Consider rental services like CaterTrax which offers industrial kitchen rentals. You get short-term access to pro gear for recipe testing and small-batch production. Just ensure that rented equipment meets your output needs.

Leasing lets you pay for equipment over time while preserving capital for other startup costs. Expect to pay 10% to 30% down payment followed by monthly installments over 2 to 5 years. Ownership transfers to you after the final payment. Understand lease terms fully and consider equipment lifespan when entering agreements.

11. Establish Your Brand Assets

Defining your brand is crucial for making a memorable first impression and connecting with pet owners in the competitive dog food market. Invest time in crafting your brand identity.

Get a Business Phone Number

Start by acquiring a professional business phone number to list all materials using a service like RingCentral . Choose an area code local to your headquarters and use a prefix that spells a memorable word.

Design a Logo

Create a logo that encapsulates your brand identity. Given the cute consumer target, consider an icon, character, or illustrative logo. Use a logo maker like Looka to design options tested to appeal to dog lovers.

Print Business Cards

Speaking of business cards, they are still essential for networking and making connections at trade shows, vet offices, pet stores , and anywhere your brand has a presence. Vistaprint makes it easy to design and order 500 basic cards for under $20.

Obtain a Domain Name

Your business name should also be secured as an available domain for your website and email addresses. Aim for a .com domain containing your name or prominent keywords. Namecheap facilitates finding and registering domains for just $9-$12 per year.

Design a Website

For your site itself, use a user-friendly platform like Wix to launch a polished website showcasing your products, story, and brand personality in the afternoon. Or hire a freelancer from Fiverr to build a custom site matching your vision for $500 to $5,000 depending on features. This online presence markets your brand 24/7.

12. Join Associations and Groups

Joining local pet-focused associations, meetups, and online groups can help dog food entrepreneurs gain insider industry knowledge, valuable connections, and potential customers.

Local Associations

Seek out associations like pet bakery and boutique networks PetFoodDirect and the Pet Food Institute that offer mentorship, education, and networking. Attend association conferences to connect with fellow pet entrepreneurs and industry experts. Expect annual dues under $500 to access benefits.

Attend Meetups

Attend regular meetups to connect with the local pet community. Sites like Meetup make finding relevant events easy. Search for pet-related mixers, trade shows, and nonprofit gatherings to meet fellow pet lovers and potential retailers face-to-face. Bring plenty of samples and business cards to promote your brand.

Facebook Groups

Facebook Groups like Canine: Nutrition & Dog Food Discussion let you tap into the collective knowledge of thousands of pet food makers. Seek advice on issues like scaling production or navigating regulations. Share your pet food journey and get product feedback. These groups offer 24/7 support.

13. How to Market a Dog Food Business

Marketing is imperative for gaining brand awareness and acquiring new customers as a dog food business. While your network and customer referrals are invaluable, you need diverse tactics to drive growth.

Create a Referral Program

Start by incentivizing happy buyers to endorse your brand on social media or leave positive reviews. Offer a 10% discount code to any customer who tags your business in a post praising your product. This organic promotion makes an impact.

Digital Marketing

When it comes to digital marketing, consider tactics like:

• Google Ads – Target local pet parents searching for dog food
• Facebook/Instagram ads – Display ads focused on relevant buyer demographics and interests
• Influencer marketing – Pay pet influencers on Instagram or TikTok to feature your products
• SEO optimization – Optimize website content to rank highly in search engines
• YouTube channel – Create videos spotlighting your brand story and products
• Blogging – Publish weekly blog content targeting informational pet food queries

Traditional Marketing

Traditional approaches like print advertising and direct mail still warrant consideration:

• Billboards/signage near pet stores and vet offices
• Local radio ads during pet-focused programs
• Direct mailers to neighborhood pet owners announcing new products
• Flyers at local dog parks, trails, and other pet hotspots
• Sponsoring pet adoption events or fundraisers

Track the ROI on each marketing activity to double down on what works. Be sure to make sales easy by promoting online ordering and retail locations.

14. Focus on the Customer

Providing exceptional customer service is necessary for dog food businesses to nurture loyalty and gain referrals. When a pet owner feels genuinely cared for, they will eagerly promote your brand to friends and family.

Some ways to improve customer focus include:

• Be available: Make yourself available to personally answer questions and offer support by phone, email, chat, and social media.
• Be personal: When speaking to customers, use their names, ask about their pets, and get to know them. This personal touch makes a difference.
• Go above and beyond Resolving issues quickly turn dissatisfied buyers into raving fans.
• Customer rewards: Surprise repeat shoppers by including free dog treats or toys with their purchase.
• Send thank you notes: Send handwritten thank you notes when a pet parent shares the positive impact of your food.

By providing VIP treatment, you create emotional connections with pet owners. A customer wowed by their experience will enthusiastically vouch for your business and refer new patrons. This word-of-mouth marketing is invaluable for a growing dog food brand.

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How to Start a Dog Food Business: 10 Considerations (2024 Guide)

By Chris Dinesen Rogers

Updated on Feb 15, 2024

With 69 million American households ¹ owning dogs, you might consider it a potentially lucrative business. After all, the pet food market is a $50 billion industry 2 . Most owners buy commercial food, with only about 20% 3 making it themselves. The pandemic has taught us to appreciate the convenience of home delivery. Perhaps you believe you can bring something new to the table.

It’s essential to realize up front that the industry is heavily regulated at the federal and state level. It’s a lot more than merely building a product and hoping the sales will come. It involves compliance with safety regulations, supply chain issues, distribution channels, marketing, and many other considerations that can pop up along your path to success. Suffice to say that there’s a lot to cover.

Before You Start

Let’s start with the regulation of the industry. You’re dealing with the FDA and the Center for Veterinary Medicine (CVM) at the federal level. You must comply with the Food Drug and Cosmetic Act (FD&CA) of 1938, 2011 Food Safety Modernization Act (FSMA), Code of Federal Regulations, and the Bioterrorism Act if you produce food in a manufacturing facility.

You must also comply with every state’s set of additional regulations for animal feed where you want to sell it. If you’re going to market your product online, then you must register in all 50 states ¹ . The same thing may also apply if you want to offer your dog food at a farmer’s market or other venues. The Association of American Feed Control Officials (AAFCO) is an excellent place to start.

While the AAFCO doesn’t regulate pet food, it develops the nutritional standards, which can go a long way toward meeting the states’ requirements. Unfortunately, there isn’t a shortcut to meeting these compliance regulations. However, it doesn’t stop there. Laws cover the ingredients you can use, implementation of the current good manufacturing practices (cGMPs), and product labeling.

You must work with multiple agencies to ensure compliance. Our guide is for informational purposes only and is not intended to be a comprehensive set of instructions. Instead, we hope it will give you a better understanding of the complexity of the process. Our research has made us appreciate the industry and the efforts it makes to provide safe food for our pets.

How to Start a Dog Food Business

1. review the fsma requirements.

These regulations 4 will provide a roadmap for starting your dog food business. The Technical Assistance Network ¹ (TAN) can provide additional assistance if you have any questions.

2. Purchase and Review the AAFCO’s Official Publication

This document 5 will provide comprehensive information about the regulatory hurdles you must meet. It’s especially useful if you want to see your dog food online and want to meet the requirements of all 50 states. The organization endeavors to provide a baseline that may satisfy everything you must do to comply.

3. Review the State Requirements

If you plan to sell your products in only one state, you can begin with the state feed control official 5 in your area. If it is starting to seem like a lot of red tape, remember that the mission of all these agencies is the safety of the pets and their owners. Their goals are based on decades of scientific research 6 in animal nutrition. We’re sure that you want the best for your pup, too.

4. Register with the FDA

You must register your business with the FDA 6 through the Bioterrorism Act if you plan to make dog food outside of your home. It’s a wise plan to review these regulations even if you’re not using an off-site manufacturing facility so that you know what to expect if your business grows too big for home preparation.

5. Review the Labeling Requirements

Just like commercially produced human foods, dog products must have specific information on their labels. You can think of it as a checklist that you’ve done your research and homework before marketing your product. The eight required items include:

• Product name
• Pet species
• Quantity of food in the package
• Guaranteed analysis
• List of all ingredients by weight
• A statement of nutritional adequacy
• Feeding directions
• Contact details of the manufacturer or distributor

6. Ensure Compliance if You’re Claiming the Food Is Complete and Balanced

Most of the labeling requirements are straightforward. However, you must get verification for the analysis, ingredient list, and nutritional adequacy. The latter is necessary if you’re marketing your product as a daily diet instead of a treat or snack. It’s worth noting that the FDA does not pre-approve pet food. It steps in when there are problems or misleading claims.

7. Get Verification of the Guaranteed Analysis and Ingredient List

Laboratory analysis of your dog food will provide an accurate assessment of the product. You must list the ingredients on the label in order of weight. That will yield several vital pieces of information, including the moisture percentage, crude fat , and crude protein levels. You can also add any nutritional information about your product.

Ingredients classified as Generally Recognized As Safe  (GRAS) will comply with the FDA’s regulation, as long as you’re using them as intended . That caution also applies to colorings and food additives. Additional rules exist with canned pet food.

8. Get FDA-CVM Approval for any Health Claims

The FDA regulates any health claims manufacturers make about their products. That includes any seemingly benign statements like “supports digestive health.” The agency is careful to explain that approval isn’t a recommendation of one pet food over another. It simply says that it meets the definition of what the label states.

Bear in mind that compliance also applies to your website and other marketing materials you distribute. Failure to comply will invite an FDA warning letter.

9. Create Your Compliant Label

The layout for your dog food has to comply with AAFCO’s “Model Regulations” for commercial pet products. The organization provides a detailed checklist to ensure that it meets these requirements. We suggest paying attention to specific language that could jeopardize its compliance. For example, you can’t claim something is new and improved if it’s more than six months old.

You should also review the 100-95-25 percentage rules about naming your dog food requiring the ingredient type. For example, if you claim it is 100% chicken, that’s all it should contain other than water. The 25-percent rule applies to products with descriptors like entrée or meal.

10. Conduct Regular Internal Reviews

If you start a dog food business, you can plan on getting inspected at some point. The best way to avoid fines or recalls is to follow the cGMPs to the letter. You’ll likely find that state agencies will have varying reporting requirements. Make sure to stay current with any paperwork or actions you must complete. We also suggest following any updates the FDA releases specific to pet food.

Final Thoughts

Starting a dog food business is an excellent way to fill a niche for owners looking for tasty additions to their pets’ diets . However, it carries a lot of responsibility, too. While the regulations may seem daunting, they exist for the safety of everyone. Most are common sense. Others protect the consumers from misleading claims. If you’re successful, you’ll find it a rewarding experience.

• See also:  How to Start a Dog Training Business: 10 Expert Tips
• https://www.americanpetproducts.org/press_industrytrends.asp
• https://www.statista.com/statistics/253983/pet-market-sales-in-the-us-by-category/
• https://www.statista.com/statistics/1270804/what-pets-usually-eat-in-the-us/
• https://petfood.aafco.org/Internet-and-Farmers-Market
• https://www.fda.gov/media/93897/download
• https://www.fda.gov/food/food-safety-modernization-act-fsma/fsma-technical-assistance-network-tan
• http://www.aafco.org/Publications/PublicationListing.aspx
• https://www.aafco.org/Regulatory/State-Information
• https://www.petfoodinstitute.org/about-pet-food/nutrition/history-of-pet-food/
• https://www.fda.gov/media/85098/download
• https://www.fda.gov/animal-veterinary/animal-health-literacy/information-marketing-pet-food-product
• https://www.petfoodinstitute.org/about-pet-food/nutrition/guaranteed-analysis/
• https://www.fda.gov/animal-veterinary/animal-health-literacy/fdas-regulation-pet-food
• https://www.ecfr.gov/current/title-21/part-113
• https://www.aafco.org/Portals/0/SiteContent/Regulatory/Committees/Pet-Food/20210722_PF4ModelRegs_DRAFT.pdf
• https://www.aafco.org/Portals/0/SiteContent/Regulatory/Committees/Pet-Food/Reports/Pet_Food_Report_2014_Annual-Appendix_B.pdf
• https://talkspetfood.aafco.org/readinglabels

Featured Image Credit: Tyler Olson, Shutterstock

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Pet Products Manufacturer Business Plan

Start your own pet products manufacturer business plan

Wishbone Pet Products

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Company Wishbone Pet Products, Inc. is a start-up company that will design and market innovative pet products. This business plan has been developed to present Wishbone Pet Products, Inc. to prospective investors and assist in raising $120,000 of capital needed to begin production and launch our first product.

Market The pet product industry is a large and expanding market. The most rapidly growing market segment is pet products and supplies, which represents 5.5% of the market. This segment is projected to increase from $5.2 billion to $6.9 billion in the next five years, according to the Business Communications Company Pet Industry study. The reason for this tremendous growth in pet products and supplies is the growing number of pet owners and pets.

According to a recent survey conducted by the American Animal Hospital Association, there were approximately 235 million households which owned pets. These households represent about 60% of all U.S. households, and 40% of these households own more than one pet, according to an American Pet Product Manufacturers Association (APPMA) study. Of these pet owners and pets, there are approximately 43 million dog owners who owned 62 million dogs. Another recent study found that the average household with pets spent about $350 on their pets. The average American household spends more on pet food than it does on wine, over-the-counter drugs, candy, or television sets. It spends more on veterinary services than it does on coffee, books, video rentals, or computer software.

Need Recently dog owners have been criticized for leaving their dogs droppings in public places and on private property. Failure to retrieve dog waste is a matter of considerable concern due to public health risks, not to mention the inconvenience to the public. As a result, many communities have passed legislation requiring dog owners not only to clean up after their pet but also to carry a device for performing this task.

According to a Ralston Purina pet owner study, dog owners cite cleaning up after their dog as one of the primary challenges of owning a dog. Unfortunately, currently available dog waste clean-up products are crudely designed and cumbersome to operate, leaving many dog owners frustrated and less inclined to clean up after their dog. To address the needs of dog owners and their communities, a simple, clean, effective means of accomplishing this task is needed.

Solution Fetch™ is a unique dog waste clean up product designed so that the user’s hands never contact the dog waste in any way. With a simple one-handed operation, Fetch™ encloses the dog waste in a bag inside of a sealed plastic case. Upon closing, the bag is automatically sealed. When Fetch™ is opened again, the liner bag and its contents are automatically discharged into a waste receptacle. Standard plastic liner bags can be deposited into an appropriate waste receptacle for disposal. Biodegradable liner bags can be deposited into a toilet for disposal. Its compact size makes it ideal for use when walking and the liner bag keeps the device from being contaminated.

Advantage Wishbone Pet Products is positioned to address this market need with an innovative, patented product and a management team with extensive product design and marketing experience. We have spent ample time on the development and research of Fetch™ to ensure that it will satisfy the market demand for a simpler and more effective dog waste clean-up product.

Financials Research and development work to date has been self-funded by the principal. Based on detailed financial projections, if the company receives sufficient funding to launch Fetch™, it will operate profitably within the first year with a net profit.

1.1 Objectives

• Develop a sustainable pet product business that designs, manufactures, and markets innovative pet products.
• Successfully bring Fetch™ to market by April Year 1.
• Achieve sales volume targets:
• Year 1: 25,000 scoops, 40,000 boxes of bags (25 bags/box)
• Year 2: 50,000 scoops, 175,000 boxes of bags (25 bags/box)
• Year 3: 100,000 scoops, 420,000 boxes of bags (25 bags/box)
• Reach break-even point within 12 months.

1.2 Mission

Wishbone Pet Products mission is to help people enjoy their pets by developing innovative products that address pet owners needs.

1.3 Keys to Success

Quality Products Product sales are the primary income source for Wishbone Pet Products. To achieve sales goals, innovative products based on world-class industrial design, engineering, and manufacturing are essential.

Strategic Niche Marketing Wishbone Pet Products will market a small number of innovative products. Consumers in our targeted niche markets must be educated about their benefits in order for them to gain market acceptance and penetration. The marketing strategy must reflect this reality.

Strategic Partnerships Wishbone Pet Products will rely on assistance from strategic partners to manufacture, deliver, and market products. The establishment and maintenance of these partnerships is crucial.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Wishbone Pet Products, Inc. develops, manufactures, and markets pet products. Our mission is to develop products that help people enjoy their pets more. We combine intensive market research with world-class industrial design and engineering to create innovative products that address identified needs in the pet product market.

Currently, we are developing a product that makes it easier for dog owners to clean up dog waste. Fetch™, is a dog waste clean-up device that provides a simple, sanitary, and dignified way to accomplish this task. Fetch™ addresses the frustrations of dog owners, due to the shortcomings of existing dog waste clean-up products, with an innovative (patent pending) solution to this decidedly unpleasant task. Fetch™ automatically collects, bags, and disposes of dog waste, a capability not available in the market today.

2.1 Sustainable Competitive Advantage

Form and Function The pet product market is filled with crudely designed and manufactured products. The form and function of our products sets them apart from the competition. Our focus on industrial design and engineering results in products that look better and work better than their competitors and are, therefore, more likely to be purchased.

Marketing We will work with our advertising and marketing partners to develop clear marketing strategies for our products. This effort will set our products apart from a field of competitors that seems to lack a coherent marketing strategy. Marketing and advertising by competitors, even in trade magazines, is virtually nonexistent. Our competitors seem content to merely get their products in a store and then hope that the customer selects their product over the other choices available.

Operations Wishbone Pet Products operations strategy leverages limited resources by utilizing external resources for product development assistance, manufacturing, fulfillment, and marketing. With this operations strategy, we can quickly and efficiently develop new products, initiate manufacturing activities and distribute our product with minimal upfront and fixed costs, resulting in significant profits.

2.2 Start-up Summary

Wishbone Pet Products total start-up costs include expenses incurred before the start of the plan include legal counsel (patent, trademark, and business), consultants (marketing, advertising), and research and development. Assets required at the start of the plan include manufacturing tooling and initial product inventory. Additional funds are required to launch a marketing campaign, finance daily/monthly operations, and have cash available for contingencies. A portion of the start-up costs has been financed by direct owner investment. The remainder of the start-up capital required will be provided by a combination of investment, SBA guaranteed loans, and lines of credit.

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2.3 Company Ownership

Wishbone Pet Products is being founded by Kent Chase. Mr. Chase, a devoted dog owner, has over ten years of product design experience as a mechanical engineer and project manager. As a product design consultant, he has taken dozens of products from concept to production. Wishbone Pet Products will be incorporated as an S-corporation with headquarters located in Madison, Wisconsin.

Fetch™ is an innovative (patent pending) dog waste clean-up and disposal device marketed to dog owners. While many products are available to assist owners in cleaning up after their dogs, they are at best cumbersome and at worst ineffective. Many of these products require the user to touch, see, and smell dog waste during and after use and are also unsuitable for use when walking. Fetch™ offers the following benefits:

• Ease of use – simple one-handed operation.
• Ease of disposal – contents are automatically deposited into a waste receptacle for disposal.
• Compact – its size makes it ideal for use when walking.
• Clean – the liner bag keeps the device from being contaminated.
• Environmentally friendly – biodegradable liner bags can be disposed of in a toilet.

3.1 Competitive Comparison

There are four distinct types of dog-waste disposal products currently available.

Type 1 – Mechanisms With Bag Products in this group use a mechanism in conjunction with a bag to collect, carry, and dispose of dog waste. Most of these products utilize a long handle. The handle, while intended to allow the user to operate the product at a distance from the waste, makes operation difficult. Products with long handles are also cumbersome to carry. All of these products require the user to seal the bag by hand and many require the user to manually dispose of the bag. In practice these products are difficult to manipulate effectively and the manner of operation results in incomplete retrieval of the waste and/or unintended smearing of waste on the device. These operations are distasteful to many people and discourage the use of such products.

Type 2 – Mechanisms Without Bag Products in this group use some type of mechanism to collect, carry, and dispose of dog waste. While these products suffer the same disadvantages as the products in the first group, the primary disadvantage of these products is that they must be carefully cleaned of the residue of the collected waste before they are stored or it will result in offensive odors and dirt being brought inside from outdoors. This group also includes rakes and shovels.

Type 3 – Modified Bags Products in this group include paper or plastic bags that have features added (e.g., cardboard, stiff plastic) to keep the users hand from directly touching the dog waste and make it less distasteful to pick up dog waste. These products are often bulky and awkward, making transport and handling quite difficult. Moreover, these products present difficult cleaning problems and, accordingly, products of this type are objectionable from an aesthetic as well as functional standpoint. In addition, these bags are not biodegradable and cannot be disposed of in a toilet.

Type 4 – Bags This group consists of ordinary plastic bags, which are slightly modified or not modified at all. Modified bags include: scented bags, biodegradable bags, and bags with built-in ties. While use of a plastic bag is arguably the most commonly employed means for cleaning up dog waste, it is also one of the most objectionable. The user must come into direct tactile and olfactory contact with the dog waste, a most unpleasant prospect. In addition, the bag requires careful handling until a suitable waste receptacle is located.

3.2 Product Description

Fetch™ is unique in a number of ways. Fetch™ is designed so that the user’s hands never contact the dog waste in any way. With a simple one-handed operation, Fetch™ encloses the dog waste in a bag inside of a sealed plastic case. Upon closing, the bag is automatically sealed. When Fetch™ is opened again, the liner bag and its contents are automatically discharged into a waste receptacle. Standard plastic liner bags can be deposited into an appropriate waste receptacle for disposal. Biodegradable liner bags can be deposited into a toilet for disposal. Its compact size makes it ideal for use when walking and the liner bag keeps the device from being contaminated.

The elastic-edge liner bag is the key to Fetch’s™ simple operation. When Fetch™ is closed the liner bag is automatically closed with the contents inside. Two different types of liner bags are available:

• Standard bags are made of 1 mil polyethylene film with an elastic edge. These bags should be disposed of in an appropriate waste receptacle.
• Biodegradable bags are made of 1 mil water-soluble film with an elastic edge. These bags can be disposed of in any toilet or appropriate waste receptacle.

3.3 Sourcing

In accordance with the operations strategy, product manufacturing and fulfillment will be outsourced. Price quotes and invoicing terms have been obtained from these vendors. This information has been incorporated into the financial projections where appropriate.

3.4 Competition and Buying Patterns

Due to the healthy expanding economy of the 1990s, American pet owners have been able to “lavish unprecedented spending on their pets”. Since these owners often consider companion animals, such as dogs and cats as members of their family, pet food companies have cashed in on this emotional bond. For instance, Funda Alp, a spokesperson for the American Pet Products Association stated that “love does translate into dollars.” A study by Sloan Trends & Solutions in 1998 found that the average household with pets spent about $350 on their pets in 1998. These expenditures are expected to grow at an average rate of 4.4%/yr during the next 5 yr period. The average American household spends more on pet food than it does on wine, over-the-counter drugs, candy, or television sets. It spends more on veterinary services than it does on coffee, books, video rentals, or computer software.

Market Analysis Summary how to do a market analysis for your business plan.">

The primary market for Wishbone Pet Products is dog owners. A study sponsored by the Pet Food Institute (PFI) confirmed that the number of pet dogs and cats in the U.S. has reached an all-time high. In 2000, there were 59 million pet dogs. The percentage of households owning dogs remained constant at approximately 37%. PFI began tracking the population of pet dogs and cats in the U.S. in 1981. Since that time, the number of pet dogs has grown by more than 5 million. Spending on pet products is also increasing, from $5.2 billion in 2000 to a projected $6.9 billion in 2005, according to the Business Communications Company Pet Industry study.

4.1 Market Segmentation

Demographic Profile of Dog Owners:

4.2 Target Market Segment Strategy

While Fetch™ is affordable and useful for all dog owners, our focus will be on middle-aged female baby boomers. This group represents the largest and most affluent segment of the pet product market in general and of dog owners in particular. This focus will primarily manifest itself in the type of marketing and advertising techniques we employ.

Market Trends The market for pet products has been growing rapidly with demographics driving the demand for pet supplies. Aging baby boomers are filling their empty nests with pets, while the number of households with children from 5 to 15, the core pet market, keeps climbing. A large category of current pet owners can be considered “pet enthusiasts,” as characterized by the leading wholesaler PetSmart. PetSmart CEO Philip Francis calls pets “an affordable luxury,” sales of which have not been dented by weakening consumer confidence. These consumers are “passionately committed to their pets” and regard their pet like “a family member.” The strong commitment of these owners for their pets is shown by some of the 1998 statistics provided by the American Pet Association. These statistics show how millions of owners treat their pets much like their own children or other family members by buying them gifts, celebrating their birthdays or displaying their pictures. This commitment is especially strong for dog owners. More than half of all U.S. dog owners say they are more attached to their pets than to at least one other human being, and from 4-13 million say they are as attached to their dogs as they are to their best friend (13 million), children (6 million), or spouse (4 million).

Market Needs Dog owners consider cleaning up after their dog a major challenge. Unfortunately, currently available products offer dog owners little help as they are generally cumbersome to carry, crudely designed and manufactured, difficult to operate, and difficult to keep clean. Dog owners will welcome a product that can effectively address these problems.

Market Growth Demographic trends are positive for the pet industry. With many older couples turning to pets for companionship, and with the older population expanding with baby boomers, spending on pets is likely to rise. According to the U.S. Census, in 2000, baby boomers accounted for 35% of the dog owning population. By 2008 they will account for 40% of the dog owning population.

4.3 Industry Analysis

According to the APPMA, the market for pet products and services was $23 billion in 1998, $27 billion in 2000, and $29 billion in 2001. By 2005, the industry is expected to grow even more to $33.5 billion, according to a study by Business Communications Company on The Pet Industry. Significantly, the most rapidly growing market segment is pet supplies, which represents 5.5% of the market. These supplies include dog and cat toys, collars and leashes, pet waste clean-up products, cages and habitats, and books. The pet product market, while massive, is highly fragmented at both the retail and wholesale level. This fragmentation provides an opportunity for new companies and products to compete and thrive.

Industry Participants While the superstores and discount stores account for over 50% of U.S. pet supply sales volume, many other retailers sell pet supplies. Among these other retailers are supermarkets, discount stores, other mass merchandisers, specialty pet stores, direct mail houses, Internet retailers, and veterinarians. In addition to being fragmented, pet product retailers cater to different demographics. Nationwide outlets such as Three Dog Bakery tend to carry “high end” products while supermarket-style stores like Pet Supplies Plus tend to carry lower price products. This differentiation makes it difficult for a single manufacturer to dominate the market and leaves niche markets open.

Distribution Patterns The pet product supply chain is as fragmented as the retail market. There are hundreds of pet product distributors with both regional and national coverage. While many pet stores buy primarily from these distributors, others buy directly from manufacturers. In addition, catalog sales and Internet sales comprise a significant portion of the market.

Buying Patterns Due to the healthy expanding economy of the 1990s, American pet owners have been able to “lavish unprecedented spending on their pets.” Since these owners often consider companion animals such as dogs and cats as members of their family, companies have capitalized on this emotional bond. For instance, Funda Alp, a spokesperson for the American Pet Products Association stated that “love does translate into dollars.” A study by Sloan Trends & Solutions in 1998 found that the average household with pets spent about $350 on their pets in 1998. These expenditures are expected to grow at an average rate of 4.4%/year during the next five year period.

Web Plan Summary

Fusion Design The Fusion Design website will be the virtual business card and portfolio for the company. It will highlight the product line and provide links to websites for each of the products. The graphic design of the website will correspond to the corporate identity graphic design.

Fetch This website is part of the overall marketing mix. It will provide product information and service. It will have a commerce section to allow customers to purchase Fetch or replacement liner bags. The website needs to be simple and well-designed, and in keeping with the latest trends in user interface design. The graphic design of the website will correspond to the product identity graphic design.

Fetch Because the target market for Fetch uses the Internet on a regular basis the website is an important part of the marketing plan. The website will have a commerce section to allow sales of scoops and replacement bags. Because this product requires replacement liner bags it is especially important that these be readily available. Advertising on the internet has not yet proven to be very effective and will not be aggressively pursued initially. Website awareness will be accomplished via more traditional forms of advertising and product purchases.

5.1 Website Marketing Strategy

Website Marketing Strategy Advertising on the Internet has not yet proven to be very effective and will not be aggressively pursued initially. Website awareness will be accomplished via more traditional forms of advertising and product purchases.

Development Requirements Development of these websites will be outsourced. We will work closely with the selected website developer to develop a simple and well-designed site that satisfies the needs of Fetch’s™ target groups. Site hosting and e-commerce transactions will be handled by the order fulfillment provider.

5.2 Development Requirements

Development of these websites will be outsourced. Fusion Design will work closely with the selected website developer to develop a simple and well-designed site that satisfies the needs of Fetch’s target groups. Hosting and e-commerce transactions will be handled by the order fulfillment provider.

Strategy and Implementation Summary

Fetch™ is positioned very carefully: this is an innovative product that addresses a major complaint of dog-owners better than any of the competitors. Our marketing strategy is primarily based on making this information available to our target market, visually via point-of-purchase displays and graphically via creative ad copy and graphics. This basic strategy should allow this product to stand out in a field of competitors that appear to employ no clear marketing strategy.

6.1 Value Proposition

The value proposition for Fetch™ lies with the dog owner. With Fetch™, the dog owner will have a simple, sanitary, and dignified means of cleaning up after their dog. Because dog owners identify this task as one of the most challenging aspects of owning a dog and because the target market has substantial disposable income, they will be willing to pay a premium price to acquire this superior product.

6.2 Competitive Advantage

None of the dog waste clean-up products currently available can do what Fetch™ does. Fetch™ fills a need as it provides an aesthetically pleasing, easily operated device which eliminates contact with the dog waste by the user and the reusable portion of the device while collecting and packaging the waste in a sealed container for convenient disposal.

The competitive advantages for Fetch™ are function and form. Quite simply, Fetch™ works better and is easier to use than any of its competitors. Careful attention was also paid to the aesthetic and ergonomic form of Fetch™. Nearly all of the competitive products are crudely designed and crudely manufactured. The following table provides a feature comparison between Fetch™ and currently available products. The product types are discussed in detail in the Competitive Comparison section. The priority column lists the level of importance consumers place on each feature.

Competitive Comparison:

6.3 Marketing Strategy

The primary goal of our sales and marketing strategy is to simply and succinctly explain our product to our target market. An explanation of this innovative product is best accomplished by means of a visual demonstration. Focus group research within the target market shows that, while there is a significant amount of interest in this product based on a verbal description, this interest is greatly magnified by a visual demonstration. Retail product demonstrations will be accomplished with point-of-purchase displays that allow customers to try the product for themselves. In addition, the product itself is packaged in such a way that consumers can operate it and see for themselves how it works. The product website will also be used to visually demonstrate the product. Presentations on cable television home shopping channels are also being considered. These alternatives provide an ideal forum for demonstrating the product and reach a wide audience.

Creative application of print media will provide a product description for catalog and ad copy. We will be working with our advertising and marketing partner to develop ads for selected magazines. This effort alone should be sufficient to set this product apart from a field of competitors that appears to lack any type of marketing strategy. We are also planning a series of press releases timed to coincide with the product launch.

6.3.1 Distribution Patterns

Product distribution will be accomplished by pet product distributors and the order fulfillment provider. The primary distribution channel for pet products is through regional and national pet product distributors. We are actively pursuing agreements with regional distributors and will be attending major industry trade shows to develop contacts with distributors in other regions of the country. The secondary distribution channel is through direct retail sales, specialty catalog sales, and website sales. We are also actively pursuing agreements with retailers and specialty catalogs. Once these agreements are in place, our order fulfillment provider will fill these orders.

6.3.2 Positioning Statement

For affluent, suburban, middle-aged female baby boomers whose children have left home (“empty nesters”) who lavish attention on their dog and who consider cleaning up after their dog an unpleasant and undignified task, Fetch™ provides a much-needed solution. Fetch™ addresses this need better than the competitors because it provides an aesthetically pleasing, easily operated device which eliminates contact with the dog waste by the user and the reusable portion of the device, while collecting and packaging the waste in a sealed container for convenient disposal.

6.3.3 Pricing Strategy

The manufacturers suggested retail price (MSRP) for Fetch™ is $30. The MSRP for the bags is $6.75 for a box of 25. These prices are based on a skimming strategy, which sets the initial price high to establish high perceived value. High perceived value is important, as the target market has substantial disposable income and is willing to pay for style and functionality. These MSRP’s are based on a careful survey of competitive products prices. While these MSRP’s are high for this product category, they are not the highest nor is this the only high-priced product in its category. There are several competitive products with similar prices.

Although the MSRP is intentionally set high, based on manufacturing costs for the scoop and the bags, these retail prices can be dropped substantially and still leave a reasonable margin. This allows for price flexibility and pricing strategy modification based on the response of the market.

6.4 Sales Strategy

Our initial sales strategy will focus on regional retail sales, specialty direct mail catalogs (e.g., Drs. Foster and Smith, Sharper Image, Brookstone), and e-commerce. This initial strategy is intended to control growth and keep sales in line with projections. As sales increase and more working capital becomes available we will begin to focus on national retail sales. Although ‘big-box’ retailers (e.g., Petco, Petsmart, Wal-mart) are key targets, most products enter these retailers via distributors. To get our product into these stores we will pursue agreements with distributors that already have relationships with these stores.

6.4.1 Revenue Streams

Because Fetch™ requires the use of a consumable item, two revenue streams are generated. The Sales Forecast graph illustrates the advantage of having a product that includes a consumable component. Although customers will only need to purchase Fetch™ once, they will need to continue to purchase liner bags to continue to using the product. By year three, bag sales are nearly equal to scoop sales. Eventually, bag sales will eclipse scoop sales. This will allow for more price flexibility as the scoop could then be sold primarily as a means of generating sales of the consumable. While there are some disadvantages to products that require replacement components (e.g., replacement components may not be available when required, retailers may be sold out) the advantages are clear. In order to minimize customer concerns about replacement bags, the primary focus of the website will be to provide online purchasing of replacement bags.

6.4.2 Sales Forecast

The sales forecast includes sales of scoops and liner bags to wholesalers/distributors (75%) and retailers (25%). To keep the sales projections conservative, direct sales to customers via the website were not included in this forecast. Bag sales forecasts assume that for each scoop purchased, the liner bags will be used twice per week. This corresponds to one box of 25 bags being used every three months.

6.5 Milestones

The following chart and table shows key milestones for start up and the first quarter of operations:

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

To remain consistent with our overall strategy of minimizing fixed costs, Wishbone Pet Products does not intend to develop a large employee or operations infrastructure. Some of the product design activities and all of the manufacturing and distribution activities will be outsourced. This dramatically reduces the in-house requirements for manpower.

Wishbone Pet Products is a pet product innovator and marketing company based on a lean and agile operations strategy. We will leverage limited resources by utilizing external resources for product development assistance, manufacturing, fulfillment, and marketing. We may also finance accounts receivable with a factor in order to minimize administrative work and guarantee a positive cash flow. With this operations strategy, we can quickly and efficiently develop new products, initiate manufacturing activities, and distribute our product with minimal upfront and fixed costs. This strategy allows us to remain lean, by leveraging the expertise that each external resource possesses and agile with respect to changing customer needs.

7.1 Management Team

In keeping with our operations strategy, we have assembled a team of consultants to provide expertise and direction in key areas. We have also assembled an Advisory Board consisting of key individuals that will provide expert advice to our company when making strategic decisions. This board consists of individuals with particular expertise in engineering and new product development, entrepreneurship, and small business planning.

Kent Chase : Mr. Chase has a mechanical engineering background and has a special interest in new product development and entrepreneurship. He has been engaged in product design for the past six years, working on projects in the medical, commercial appliance, automobile, furniture, and consumer product industry. For the past five years, he has worked as a mechanical engineer and project manager for one of the largest product development companies in the United States. The new product development experience has developed his competence in taking product designs from concept through engineering and into manufacturing. The project management experience has increased his ability to manage people, budgets, and timelines. Prior to this experience, Mr. Chase spent four years in the machine design industry. He holds a Bachelor of Science and a Master of Science in mechanical engineering from the University of Wisconsin – Madison.

7.2 Personnel Plan

Wishbone Pet Products has adopted a relatively flat organizational structure. Mr. Chase will serve primarily as the general manager, providing direction and coordination for outside resources. Since development of the initial product line is nearly complete, Mr. Chase will focus on marketing and advertising strategy, coordinate the necessary outside resources to promote the product and handle administrative tasks. Prior to the product launch we will need one individual devoted to sales activities and another individual responsible for the continued monitoring of our production activities, coordinating the required manufacturing resources and monitoring fulfillment of orders.

Financial Plan investor-ready personnel plan .">

Product sales generate the primary revenue stream for Wishbone Pet Products. As such, the financial projections are closely tied to the sales forecast. While we believe that the sales forecast presented is conservative and reflects a clear understanding of the market, we have considered scenarios in which sales lag or lead our projections.           

Lagging Sales Rather than purchasing inventory in large lots we will purchase inventory approximately every three months on an as-needed basis. If actual sales volumes are less than projected, we can respond by reducing inventory purchases to reduce variable costs and maintain a positive cash balance. Our operations strategy is also an asset in this scenario as our fixed costs are very low with respect to our variable costs. If necessary we can further reduce our fixed costs by reducing personnel, as payroll constitutes the majority of our fixed costs.

Leading Sales If actual sales volumes exceed our projections we will respond by increasing inventory purchases. Our suppliers capacity greatly exceeds the estimates in our current sales projections. While we should be able to finance the increased inventory purchases with revenue generated from the increased sales, this scenario may require additional infusions of cash. We may also consider financing accounts receivable with a factor to make cash for inventory purchases readily available.

The following subtopics highlight the financial plan for Wishbone Pet Products.

8.1 Assumptions

The table below presents the assumptions used in the financial calculations of this business plan.

8.2 Break-even Analysis

Wishbone Pet Products revenues are generated from unit sales of Fetch™ (a one-time expense) and replacement liner bag sales (a recurring expense). The monthly break-even volume was determined using the sales forecast as a guide, and based on estimates for fixed costs and average revenue for Fetch™ and the replacement liner bags. We anticipate breaking even within the first year of operation.

• One scoop and one box of liners constitute one unit.
• Average Per-Unit Revenue assumes only wholesale sales of one scoop and one box of bags.
• Direct sales to retailers and catalogs will increase average per-unit revenue.

8.3 Projected Profit and Loss

Based on the sales projections and our low fixed cost operations strategy, Wishbone Pet Products will achieve profitability within one year. Profits in subsequent years will accelerate with an increase in anticipated sales volume, yielding approximately tripling of net profit in Year 2 and Year 3.

8.4 Projected Cash Flow

We expect to manage cash flow with an initial investment and expect be profitable by the end of Year 1, with occasional negative cash flows corresponding to inventory purchases. Owner invests additional $10,000 in Year 2 as a hedge against Accounts Payable/Accounts Receivable flows.

8.5 Projected Balance Sheet

As shown on the balance sheet in the following table, we expect a healthy growth in net worth by the end of the plan period. The monthly projections for Year 1 are in the appendix.

8.6 Business Ratios

The following table presents common business ratios for reference. Wishbone Pet Products NAICS classification is 339999 (SIC, 3999) – Manufacturing Industries, NEC (Not Elsewhere Classified).

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Pet Store Business Plan Template

Written by Dave Lavinsky

Pet Store Business Plan

You’ve come to the right place to create your Pet Store business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Pet Stores.

Below is an example pet store business plan to help you craft a plan for your own pet store.

Executive Summary

Business overview.

Paws Pet Store is a startup retail pet store business located in Fargo, North Dakota. The business is founded by Jack and Maryann Murray, a couple who have experience in retail sales via an online pet store serving over 7,000 regular customers through their website portal. Jack and Maryann are confident in their combined abilities to bring to the Fargo area a wide selection of products and services they know from their online sales history will appeal to the retail store customers within the region.

In the online store, Jack and Maryann Murray offer a patented series of outdoor apparel for dogs that has sold over fifty thousand dollars at retail in the past three years. The startup retail store will allow them to expand on the sales avenues for the apparel and market extensively to their target audience who live in an extremely cold region of the U.S. during the winter months.

Product & Service Offering

The following are the products and services that Paws Pet Store will provide:

• Retail merchandise for domestic animals: dogs, cats, fish and birds
• Pet food for all categories of domestic animals
• Pet accessories for all categories of domestic animals
• Pet medications and health-related products for all categories of domestic animals
• Patented dog cold-weather coats and related items
• Dog grooming service, including bathing and grooming
• Vet-on-Call (veterinarian service by appointment)

Customer Focus

Paws Pet Store will target all pet owners in the greater Fargo, North Dakota region, including outlying areas of the state. They will target veterinarians in the city of Fargo. They will also target dog trainers and handlers. They will target the owners of dog sled teams and the organizations that produce dog sled races.

Management Team

Paws Pet Store will be owned jointly (50/50) and operated by Jack and Maryann Murray. They have recruited an employee from their online pet store business to take on the role of Office Manager in the new retail store. Carlie Swenson will oversee product deliveries and mail or in-store order fulfillment for customers.

Jack Murray is a graduate of Fargo Community College with an associate’s degree in business. He has worked in the online pet store business for over six years, building a following of over 7,000 regular customers, and has successfully managed the website, SEO and marketing campaigns, the merchandise sales portal and other office duties during that time.

Maryann Murray is a graduate of Northeastern University in Bangor, Maine with a bachelor’s degree in business administration. Her role in the online pet store business has been in the area of purchasing and fulfillment. While in this role, Maryann developed a patented fabric for winter wear that was designed and is now sold as outer garment wear for dogs during the cold winter months in the North Dakota weather. The apparel is extensively utilized by dog sled trainers and owners and has generated over fifty thousand dollars in sales throughout the midwest and northeast regions of the U.S.

Carlie Swenson has worked in the product fulfillment area of the online store business for five years and will move to the retail store to oversee product deliveries and mail or in-store order fulfillment for customers. Her outstanding capability to fulfill orders in a timely and accurate manner has earned her the role of Office Manager, along with opportunities for significant advancement in this new position.

Success Factors

Paws Pet Store will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly qualified team of Paws Pet Store
• Comprehensive menu of retail products and services within the one-stop retail store
• Complementary services including dog grooming, veterinarian services, and other customized services, such as order fulfillment by express mail for customers
• Exclusive retail store merchandise sales of patented outdoor apparel for dogs
• Paws Pet Store offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.

Financial Highlights

Paws Pet Store is seeking $200,000 in debt financing to launch its Paws Pet Store. The funding will be dedicated toward securing the retail store and office space and purchasing inventory, office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and social media campaigns. The breakout of the funding is below:

• Office space build-out: $20,000
• Inventory, office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the financial projections for Paws Pet Store:

Company Overview

Who is paws pet store.

Paws Pet Store is a newly established full-service retail pet store in Fargo, North Dakota. Paws Pet Store will be the most reliable, cost-effective, and efficient choice for pet store customers in Fargo and in the surrounding communities. Paws Pet Store will provide a comprehensive menu of products and services for any pet owner, dog trainer, handler or dog sled team business to utilize. Their full-service approach includes an exclusive, patented line of winter cold-weather outerwear for dogs.

  Paws Pet Store will be able to stock merchandise, sell products and services, offer veterinarian visits, and provide dog grooming services within the Paws Pet Store retail space. The team of professionals are highly qualified and experienced in buying, inventory management, sales, and order fulfillment, office management and financial reporting. Paws Pet Store removes all headaches and issues of pet store customers who used to travel to various locations for products, services and veterinarian care. As a one-stop shop, Paws Pet Store ensures all issues are taken care off expeditiously, while delivering the best products and customer service.

Paws Pet Store History

Since incorporation, Paws Pet Store has achieved the following milestones:

• Registered Paws Pet Products, LLC to transact business in the state of North Dakota.
• Has a contract in Fargo at one of centrally-located retail buildings. Paws Pet Store will set up its office and retail space in 30,000 square feet.
• Has reached out to numerous professional contacts to market the Paws Pet Store.
• Has recruited a staff member to join Paws Pet Store in a management position.

Paws Pet Store Products & Services

The following will be the products and services Paws Pet Store will provide:

Industry Analysis

The pet store industry is expected to grow over the next five years to over $24.5 billion. The growth will be driven by increased ownership of domestic animals and the increasing attention to pet care and pet needs that the U.S. population has embraced. Products and services yet to be developed will increase the demand for pet retail stores, as well as unique products, such as outdoor winter wear for dogs, that will generate additional revenue. In particular, the one-stop service retail style pet stores will increase as consumers choose to take care of buying products and services in an easy, less-complicated process. Costs will likely be reduced as supply chain issues of pet food products and pet products are solved and products are increasingly stocked into inventory and sold through a variety of channels, including retail stores and online website sales.

Customer Analysis

Demographic profile of target market.

Paws Pet Store will target all domestic pet owners in the greater Fargo, North Dakota region, including outlying areas of the state. They will target veterinarians in the city of Fargo. They will also target dog trainers and handlers. They will target the owners of dog sled teams and the organizations that produce dog sled races.

Customer Segmentation

Paws Pet Store will primarily target the following customer profiles:

• Domestic pet owners in Fargo
• Domestic pet owners in greater North Dakota
• Dog trainers
• Dog handlers
• Dog sled team owners
• Dog sled team organizations
• Veterinarians in Fargo

Competitive Analysis

Direct and indirect competitors.

Paws Pet Store will face competition from other companies with similar business profiles. A description of each competitor company follows.

Regal Pet Store

Regal Pet Store was established in 1998 by Earl Wagner, a resident of Fargo, North Dakota. The business is a direct competitor, registered as a sole proprietorship in North Dakota. The 4,000 square foot retail store provides a variety of products for domestic pet owners, specializing in cat and dog indoor play equipment. Additional services include a machine that creates pet name tags and a “puppy playhouse,” where puppies are occasionally sold by breeders.

The promise of Regal Pet Store is to “provide everything you need to keep healthy and happy pets.” The store follows a program that was instituted by Purina Feed Company in 1990, titled “Produce, Provide and Place into Inventory,” a system of inventory management that works on a just-in-time inventory-supply philosophy. This system does not advocate holding inventory within the retail store, but suggests there are advantages to restocking only when one product of any kind is remaining on the shelf. This means customers may not be able to view all available products or obtain products, as most of the inventory is one item as a sample only. The advantage for the store owner is that there is a low outlay of monies upfront; the disadvantage is that customers cannot find products readily available when needed.

Henderson’s Feed & Tack

This retail feed and tack store is an indirect competitor located in Fargo, which supplies farmers and ranch owners throughout the North Dakota region with a wide range of feed, farm supplies and medications for farm and ranch animals. In a small portion of the store, there are products offered for dogs and cats, including pet food and leashes.

Henderson’s Feed & Tack store was founded by John Middleson in 2010, after he experienced a lack of products and feed needed to supply his cattle on the family ranch. Incorporated in 2010 as a C-corporation, the store mainly offers feed bags for farm animals, such as chickens, goats, hogs, along with bulk amounts of hay, oats and corn for ranch animals, such as horses, dairy cows and cattle. The business has garnered a number of farm and ranch customers during the years, most of whom feed their dogs and cats with house table scraps or feed products from Henderson’s Feed & Tack.

This is an indirect competitor because the dog and cat food offerings are severely limited and the target group is tertiary to the primary purpose of the business. As the dogs are “working” dogs, they do not typically require toys, bedding and other domestic animal products. Cats are feral and used to keep the farm and barn areas free of mice, rats and snakes. They are also considered to be “working” cats and are not often domesticated as indoor pets.

Tiny’s Pet Trailer

Timothy Holbrook, also known as “Tiny” Holbrook, began selling pet food and pet supplies as a traveling salesperson in 2015. He registered his business as a sole proprietor and has traveled throughout the Fargo area during the ensuing years. His business is a direct competitor, although confined to his truck bed and a small converted 10-foot trailer that contains pet food and pet supplies. With the increasing cost of fuel and inventory, it is estimated that Timothy Holbrook may close this business within a year or two. At present, Tiny’s Pet Trailer provides a service during the winter months when most customers find it difficult to travel through harsh winter weather. Tiny’s Pet Trailer takes orders via phone and, when enough customers have requested service within a region or city area, Timothy will make a trip throughout the area to drop off requested supplies. The overhead for the retail service has increased as a result of economics, while the prices for products have increased, resulting in lower profits each year for the past six years. This is a seasonal business that operates during the winter months only.

Competitive Advantage

Paws Pet Store will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Paws Pet Store will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees that is able to provide a comprehensive array of pet products and services in a one-stop store. This includes pet food, pet accessories, medications, and grooming products.
• Exclusive outlet for patented dog winter-wear apparel. Preferred by dog handlers, trainers and dog sled owners across the midwest and northeast regions
• Veterinarian care offering service hours by appointment
• Dog grooming care offering service hours by appointment
• Unbeatable pricing for clients, offering packages of services or products that can’t be met by any other retail pet store in Fargo

Promotions Strategy

The promotions strategy for Paws Pet Store is as follows:

Word of Mouth/Referrals

Paws Pet Store has built up an extensive list of contacts over the years by providing exceptional service and expertise for their owner’s website store customers. The online customers have indicated a desire to visit the retail store in the building in Fargo to view and purchase supplies not stocked online and take advantage of the dog grooming and veterinary services offered. Online customers will receive special discounts and packages when they sign up to visit and buy from the retail store in addition to website offerings. Customers have also indicated a desire to spread the word about the opening of the Paws Pet Store.

Professional Associations and Networking

Jack and Maryann Murray are members of several community organizations, as well as professional retail associations and specialty supplier networking groups. As such, they will increase their attendance and visibility in these groups and associations to increase awareness of their new store and announce the availability of the exclusive dog apparel line within the retail store.

Print Advertising

Direct mailers, in the form of invitations to the launch of Paws Pet Store, will be delivered to the 126,750 individuals residing in the city. The invitation will include a country dance, discounts on pet products, and a hog-calling contest in the city street. In addition, print ads with special discounts or offerings will be utilized in each week’s edition of the Fargo Times newspaper on Wednesdays, when retail ads are offered to customers.

Website/SEO Marketing

Paws Pet Store will utilize their in-house skills to build and sell products through their retail store business in addition to their already-established website business. The new website will be well organized, informative, and list all their services and will be differentiated from the original website with a different customer message and design throughout. The new website will also list their contact information and list their pet food and supplies available for delivery. Jack Murry will manage the SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Fargo pet store” or “pet store near me”, Paws Pet Store will be listed at the top of the search results.

The pricing of Paws Pet Store will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Paws Pet Store. Operation Functions:

• Maryann Murray will be the Co-owner and President of the company. She will oversee all operations for inventory, networking and association relationships.
• Jack Murray will be the Co-owner and Vice President of the company. He will oversee all staff and manage client relations.
• Carlie Swenson will be the Office Manager who will oversee the office administration, and online order fulfillment.
• Anthony Thompson will be the part-time Accountant who will provide all client accounting, tax payments, and monthly financial reporting.

Milestones:

Paws Pet Store will have the following milestones complete in the next six months.

• 5/1/202X – Finalize contract to lease store and office space
• 5/15/202X – Finalize personnel and staff employment contracts for the Paws Pet Store
• 6/1/202X – Finalize contracts with distributors and wholesalers
• 6/15/202X – Begin networking at industry events
• 6/22/202X – Begin moving into Paws Pet Store retail store
• 7/1/202X – Paws Pet Store opens its office for business

Paws Pet Store will be owned and operated by Jack and Maryann Murray.

Maryann Murray will be the Co-owner and President of the Paws Pet Store business. She is a graduate of Northeastern University in Bangor, Maine with a bachelor’s degree in business administration. Her role in the online pet store business has been in the area of purchasing and fulfillment. While in this role, Maryann developed a patented fabric for winter wear that was designed and is now sold as outer garment wear for dogs during the cold winter months in the North Dakota weather. The apparel is extensively utilized by dog sled trainers and owners and has generated over fifty thousand dollars in sales throughout the midwest and northeast regions of the U.S.

Jack Murray is the co-owner and will be the Vice President of the Paws Pet Store business. He has worked in the online pet store business for over six years, building a following of over 3,000 regular customers, and has successfully managed the website, SEO and marketing campaigns, the merchandise sales portal and other office duties during that time. He is a graduate of Fargo Community College with an associate’s degree in business.

Carlie Swenson has worked in the product fulfillment area of the online store business for five years and will move to the retail store to oversee product deliveries and mail or in-store order fulfillment for customers. Her outstanding capability to fulfill orders in a timely and accurate manner has earned her the role of Office Manager.

Financial Plan

Key revenue & costs.

The revenue drivers for Paws Pet Store are the monies generated by product sales and the fees charged for services provided for customers through the Paws Pet Store.

The cost drivers will be the overhead costs required in order to stock inventory at Paws Pet Store. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Paws Pet Store is seeking $200,000 in debt financing to launch its property management business. The funding will be dedicated toward securing the retail and office space and purchasing office equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print direct mailers and memberships in community and national organizations. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Customers Per Month: 600
• Number of Services Provided Per Month: 180
• Average Revenue per Month: $42,000
• Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, pet store business plan faqs, what is a pet store business plan.

A pet store business plan is a plan to start and/or grow your pet store business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Pet Store business plan using our Pet Store Business Plan Template here .

What are the Main Types of Pet Store Businesses? 

There are a number of different kinds of pet store businesses , some examples include: Live animal pet store, Pet supply store, Specialty animal pet store, and Puppies.

How Do You Get Funding for Your Pet Store Business Plan?

Pet Store businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Pet Store Business?

Starting a pet store business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Pet Store Business Plan - The first step in starting a business is to create a detailed pet store business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your pet store business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your pet store business is in compliance with local laws.

3. Register Your Pet Store Business - Once you have chosen a legal structure, the next step is to register your pet store business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your pet store business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Pet Store Equipment & Supplies - In order to start your pet store business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your pet store business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful pet store business:

• How to Open a Pet Store

Start a Pet Food Business

Bento for Buddies: Embark on a Nourishing Journey with a Boutique Pet Food Enterprise

PET FOOD BUSINESS

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Pet Store Business Plan Template

Written by Dave Lavinsky

Pet Store Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their pet stores.

If you’re unfamiliar with creating a pet store business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a pet store business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Pet Store Business Plan?

A business plan provides a snapshot of your pet store as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Pet Store

If you’re looking to start a pet store or grow your existing pet store, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your pet store to improve your chances of success. Your pet store business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Pet Stores

With regards to funding, the main sources of funding for a pet store are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for pet stores.

Finish Your Business Plan Today!

How to write a business plan for a pet store.

If you want to start a pet store or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your pet store business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of pet store you are running and the status. For example, are you a startup, do you have a pet store that you would like to grow, or are you operating a chain of pet stores?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the pet store industry.
• Discuss the type of pet store you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of pet store you are operating.

For example, you might specialize in one of the following types of pet stores:

• Live animal pet store: This type of business primarily sells live animals (rather than pet supplies) and may specialize in a certain type of pet such as birds, fish, cats, or dogs.
• Pet supply store: This type of pet store sells supplies, food, and toys for domestic pets including dogs, cats, birds, fish, hamsters, and guinea pigs.
• Specialty animal pet store: This type of pet store specializes in particular types of animal such as reptiles or farm animals and usually carries supplies designed for these specific animals.
• Puppies: This type of pet store specializes in breeding and selling puppies specifically. This type of pet store may also carry a variety of puppy supplies, food, and toys.

In addition to explaining the type of pet store you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the number of pets sold, and reaching $X amount in revenue, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the pet store industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the pet store industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your pet store business plan:

• How big is the pet store industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your pet store? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your pet store business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of pet store you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other pet stores.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of pet stores, big-box pet supply chains (such as Petco or PetsMart), or online pet stores. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of pet store are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for customers to acquire your product or service?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a pet store business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of pet store that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide pet food, kennels, toys, or live animals?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your pet store. Document where your company is situated and mention how the site will impact your success. For example, is your pet store located in a busy retail district, a business district, a standalone storefront, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your pet store marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your pet store, including answering calls, greeting customers, cleaning the store, collecting payments from customers, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth customers,  or when you hope to reach $X in revenue. It could also be when you expect to expand your pet store to a new city.  

Management Team

To demonstrate your pet store’s potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing pet stores. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a pet store.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you expect to serve an average of 20 customers per day, and will you offer a discount for repeat shoppers? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your pet store, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a pet store:

• Cost of equipment and pet store supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your pet store location lease or photos of the different types of animals that can be found in your store.  

Writing a business plan for your pet store is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the pet store industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful pet store.  

Pet Store Business Plan FAQs

What is the easiest way to complete my pet store business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your pet store business plan.

How Do You Start a Pet Store Business?

Starting a pet store business is easy with these 14 steps:

• Choose the Name for Your Pet Store Business
• Create Your Pet Store Business Plan
• Choose the Legal Structure for Your Pet Store Business
• Secure Startup Funding for Your Pet Store Business (If Needed)
• Secure a Location for Your Business
• Register Your Pet Store Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Pet Store Business
• Buy or Lease the Right Pet Store Business Equipment
• Develop Your Pet Store Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Pet Store Business
• Open for Business

Learn more about how to start your own pet store business .

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