How to open a pet store: a business for those who love pets
Opening a pet shop from scratch is an opportunity that many who want to do their own business are considering today. Many people spend a lot of money to keep their own pets. A cat certainly needs food, sand, various accessories, special pills, a parrot needs a cage and food, and a hamster needs to purchase not only filler and food, but also a house, a wheel where he could run, etc. Opening a pet store promises its own owner a good income, but you need to take into account many of the features of this business.
Many people are interested in whether it is profitable to open a pet store? Making sure the market for zoos is attractive is easy enough. According to statistical data, in the Russian Federation every 3rd family has a cat, every 5th family has a dog. Many also keep birds or fish, hamsters and turtles. You can estimate exactly how many companies produce pet products thanks to promotions. Pedigree, Whiskas, Chappy and other brands advertise themselves all over the place. The market is actually huge, but at the same time it is quite saturated and competitive.
Today there are a number of types of pet shops at once:
- a small stall located in a store;
- a department located in a supermarket;
- a medium-sized pet store;
- a large pet store that offers an extensive list of different products for sale.
And, regardless of the format, opening a pet store will be profitable if you place it in the right place, offering customers the desired list of products.
Naturally, it's not enough just to decide: "I want my own pet store." First, a detailed business plan is required. It is important to study the activities of pet stores that already exist, to analyze exactly how they carry out the work, what they offer to their customers. In addition, it is necessary to talk directly on Internet forums with those who keep animals, inquire about what products they need, what products are missing. It should be borne in mind that any information will be important when a decision is taken seriously to open your own pet store.
To open your own pet store, you need to draw up a detailed business plan, carefully calculating all costs and probable profits. Such a plan will allow you to accurately estimate how much money will be needed in order to open a pet store.
How much does it cost to open a pet store from scratch? You can give approximate calculations to spend on opening a pet store:
- purchase of equipment - 150 thousand rubles;
- repair work in the building - 100 thousand rubles;
- installation of a security system, video monitoring - 50 thousand rubles;
- state registration with the tax department - 15 thousand rubles.
Costs to be borne monthly:
- salary of employees - 70 thousand rubles;
- payments for rent - from 40 thousand rubles;
- utility costs - from 15 thousand rubles;
- advertising campaigns - 30 thousand rubles;
- purchase of goods - from 300 thousand rubles;
- other expenses - from 5 thousand rub.
Pets have become a constant source of pride, love and care. Products necessary for caring for animals are sold at a tremendous rate, the range is growing every year. Manufacturers are working on the release of new feed, accessories, clothing, hygiene items, maintenance and toys. Electronic and mechanical gadgets have appeared that simplify the existence of pets in city apartments and country houses. This is why starting a pet store with the right planning and thoughtful action is a lucrative business.
Why a pet store
Any entrepreneurial activity has its pros and cons. Among the advantages of a store for cats, dogs and other pets are:
- Demand (most modern families have pets that need to be looked after).
- Stable income.
- Payback in several months.
- Constantly updating the assortment from manufacturers.
- Average competition.
- The problem with choosing an assortment: you need to know what exactly the target audience of the region needs.
- Risk in case of wrong choice of trading place, assortment (profit depends on this).
- If animals are sold on the premises, they need care and supervision.
The benefits of opening a pet store are much greater. With proper planning, the likelihood of a good profit is high.
What documents are needed to open an object
The following documents will be required:
- Certificate of registration of LLC or IE. The format depends on the size of the enterprise that you plan to open. If it's a small tent, a PI will do. Large points require LLC.
- Licenses and quality certificates. All goods in the store must be of high quality, and certificates are able to confirm this.
- Certificates from veterinarians (if the store plans to sell animals).
- Medical books for employees. Only healthy people can work with animals.
In addition to this package of documents, permits for trade in a certain place from the following supervisory authorities are required:
- Fire department.
- Sanitary Epidemiological Station.
Pet products is an undervalued niche that has shown steady growth in recent years. Users actively place orders in online stores, make a list of their favorite sites, and enjoy the benefits of eCommerce projects.
In this article we will analyze the pet market, define the target audience and give advice on the structure of the site.
According to researchers, there are more than 30 million cats and 22 million dogs in Russia. Experts note that the numbers are increasing every year. If we consider that fish, guinea pigs, hamsters and other animals act as pets, the niche's prospects increase significantly.
Profile offline stores have noticed an increase in demand for feed and related categories by an average of 25%.
Analytical agency Data Insight published a fresh study in December 2021 that shows that the niche has a high conversion rate. Stores with goods for animals overtook the sites for the sale of food, shoes, books, accessories for sports.
A pet store is a profitable business with high competition. Along with the emergence of new offline retailers, eCommerce projects appear. Most of the orders are from well-promoted brands with a large assortment that can offer food, clothing and accessories.
- Simultaneous development offline and online. The advantage is that a retail network can be a good basis for starting a project on the Internet. There is no need to rent a separate warehouse, hire employees and receive quality certificates.
- Stable demand. Some shoppers only recognize online stores, so they place orders online. Convenient service and fast delivery are important for them. Wealthy clients often choose the products of elite companies and do not look at the price.
- Large target audience. Studies show that there are pets in every third family. People usually don't save on animals, the conversion statistics prove this.
- High price of goods. The average check in the niche is at a good level, since the goods are not cheap. For example, a 10-kilogram package of the popular Royal Canin cat food is sold for 5,000 rubles. High-quality clothing and ammunition also take up most of the budget of a family with pets.
- Fast payback. A competent approach to building relationships with clients bears fruit. On average, an online store pays off in six months or a year.
- "Youth" of the market. Online retailers started developing on average 5 years ago. The share of large brands does not exceed 3%. This means that even a new platform has a chance to find its audience.
- Large selection of suppliers. It will not be difficult to agree on long-term cooperation at wholesale prices.
- Long-term storage of products. Only some categories require special conditions. Feed, fillers, toys and clothing are kept well in regular warehouses.
- Good margin. The average markup is 70-100%. People try not to skimp on the needs of their furry comrades.
- Low entry threshold. To start, you need to create a website and fill out a virtual "showcase". It is not necessary to immediately spend hundreds of thousands of rubles on assortment. Can expand as demand increases.
At the end of 2021, NeoAnalytics conducted a large-scale study and found out that the volume of sales in the pet products market amounted to 262 billion rubles. Over the year, the figure has grown by almost 14%. 70% of the total amount is taken by feed.
Classification of pet shops in the city
What does it take to open a pet store at the lowest cost? Initially, the entrepreneur must decide on the type of premises. There are several types of pet stores:
- Mini-store, 10 sq. meters - consists of essential products: various feed, accessories for caring for animals.
- Pet shops, 50 sq. meters - a wide variety of products are available, including food and care products, accessories and medicines.
- Supermarkets - trading platforms with a wide variety of products for animals - are in demand in cities with a population of one million.
- A highly specialized pet store is a business aimed at selling certain goods or products for certain types of pets. It makes sense to open such a point with a specific demand for products.
A question of financial expenses
When considering how to start a pet store from scratch, you should consider the investment required. Main costs:
- Rent and repair of premises.
- Pet shop supplies (racks, showcases, cash register, scales, cages, refrigerators).
- Purchase of pet supplies and other accessories.
- Employee salary.
An interesting business pays off within 2 years. According to research, income from a pet store is about 1.5 million rubles, observed in a city with a population of more than 350 thousand people. It will take about 10-15 thousand dollars to open a business.
Store success: great choice
In addition to standard pet supplies: feed (make up 50-60% of purchased products), fillers for trays and medicines, you can sell accessories and furniture for animals (20% of all purchases) in a pet store. It sells well in big cities, where people do not skimp on household items for pets. There are several types of furniture and pet items:
- Jumping and running gear.
- Scratching posts.
- Trays, bowls for water and food.
We must not forget that you need to open a license to trade in medical products for animals.
Legislation and business design
You can open a business by registering an individual entrepreneur (individual entrepreneur). This will reduce tax payments, facilitate bookkeeping and reporting. To open an individual entrepreneur, an entrepreneur must be a pharmacist by training. When registering an LLC, a pharmaceutical education of one of the employees is sufficient. If the entrepreneur is not going to sell medicines (anthelmintics, anti-flea drugs) and animals, then there is no need for a license. Otherwise, it will not work to open a store without the necessary documents. The Ministry of Agriculture of Russia regularly conducts legal regulation. If you want to open a veterinary pharmacy in residential buildings, you must follow certain requirements. When the pharmacy is located in a separate room, there are accepted standards for lighting, microclimate and drinking water.
It is not surprising that aspiring entrepreneurs often think about opening their own pet store, because it is quite possible to make money on the sale of feed and other goods for animals. In addition, this business is one of the highly profitable: dogs and cats, sea fish and hamsters - they all need food, and therefore every novice businessman can count on success.
Besides, buyers of pet supplies usually come to the same place all the time, which means there shouldn't be any problems with loyal customers. And starting a business in this area is not so difficult. Opening a pet store is not the same as opening a dental office, you don't need to study at a medical university for 5 years and obtain specialized licenses. All you need is desire and perseverance, as well as a relatively small start-up capital.
- 1 Business idea overview. How to open your pet store
- 2 Step-by-step pet store business plan
- 3 Product selection
- 4 Useful tips
- 5 What is a pet store business plan for
- 6 Alternative
Business idea overview How to open your own pet store
The main feature of a business idea for opening a pet store is that a businessman (if he takes a responsible approach to business and organizes everything as competently as possible) can be sure that after a relatively short period of time he will have regular customers. Pet supplies are roughly the same as food. They are required constantly, because animals consume food very quickly, and their owners are forced to buy it again and again.
Starting a business will require about 300 thousand rubles. This will be enough to open a small pet shop. Of course, in this case, one cannot count on big profits, but an entrepreneur does not risk big money if the business “burns out”.
What about income? Usually, the payback of any store directly depends on the number of customers and their average check. If this is a very small point, then the payback period can reach one year. If we are talking about a shop of average size, which will cost about 600 thousand, then the project can be recouped in just 9-10 months.
However, this type of business is not suitable for everyone. In order to do business, you need to have basic knowledge of economics. You also need to find out where you can buy the product cheaper. If there are a large number of pet shops in the city or in one of its districts, then it is better to refuse this business idea. Lots of competitors are a sure way to fail. Therefore, it is so important to make sure that a novice businessman is ready to solve pressing everyday problems, and there are not so many competitors. Many cases can be found on the Internet for the request “business pet store”. Let's take the following business case as an example:
Rent of premises for a couple of months
Repair and purchase of equipment
The proceeds from the sale of the initial batch can reach 700-800 thousand. It can take about three months to sell this amount of goods. In the first month, earnings can reach about 260 thousand. In some cases, suppliers of pet supplies inflate prices when dealing with a novice businessman, so before starting cooperation, you need to study the proposals of other companies.