Animal lovers often see their pets as small, furry family members, which is why they're willing to spend over $35 billion dollars on pet products every year, according to the American Pet Products Manufacturers Association. Whether you love animals or simply want to take advantage of a practical business idea, a pet store can be a cost-effective business.
Of all business structures, a sole proprietorship is the easiest to establish since it doesn't involve an incorporation process. Yet you'll probably want to give your business a name other than your own, which means you will need to file a DBA ("doing business as"), also known as an assumed name or trade name, with the county clerk. A DBA allows you to present your business as "Sonny's Pet Store," for example, rather than by your real name. The cost to file a DBA ranges from $10 to $100. The county, city or state in which you live may also require you to obtain a business license, sales tax license or both, so contact the sales tax department to find out.
The cost of a brick-and-mortar store location will vary greatly depending on various factors, such as where it is and how big it is. For example, a small store in an upscale neighborhood can cost you thousands more per year than a larger one in a less-popular area. A home-based pet store is cost-effective since you already own the space, but because some local governments forbid home-based businesses, you may have to forgo this idea. You can sell your goods online through stores such as eBay and Amazon for fees as low as 25 cents per item or through your own website for as little as $3.50 a month. A website is a wise idea in any case because it gives you access to customers outside your local area.
Wholesalers sell goods to pet stores at a discount, without sales tax and, if needed, in bulk quantities. They often require some proof that the buyer actually owns a business, which means that you may have to obtain a resale license from the state tax department or an employer identification number from the Internal Revenue Service. The cost of your supplies will depend on what you buy, how much you buy and where you buy them. You need a commercial feed license to sell your own pet food, which may cost as little as $50. Contact the secretary of state to find out who administers the license in your state.
No business can survive if no one knows about it, and since not everyone who knows about your pet store will become a customer, you need to advertise constantly. Pet-related blogs, forums and social networking groups cost nothing and are especially beneficial if your business is Internet-based. You can also save money by printing your own ads from your home computer and posting them in places your customers are likely to go, such as vet offices, humane societies and pet hotels. Because the least expensive way to drive business is to keep the customers you already have, use a free business card template to help customers remember your pet store location and pass it on to others.
