Do you want to open a pet store business and want to know the cost? If YES, here is a cost breakdown for opening a pet store and the profit margin/ROI.
The pet stores industry comprises of stores that sell a range of pets, such as dogs, cats, fishes and birds, and also sell pet foods and supplies, such as collars, leashes, health and beauty aids, shampoos, medication, toys, pet containers, dog kennels and cat furniture et al. Some stores also offer pet services such as grooming and training.
If you are contemplating starting your own pet store business in the united states, you should ensure that you carry out a thorough market survey and feasibility studies. If you get some key factors wrong before starting your business, then you are likely going to struggle to stay afloat.
The Estimated Cost Breakdown for Opening a Pet Store
When it comes to starting a pet store, the major areas that you should look towards spending the bulk of your cash is in renting or leasing a standard store facility. These are the key areas where we will spend our startup capital;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of the pet store in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring a business consultant including writing a business plan – $2,500.
- The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $65,600.
- The cost for shop remodeling (construction of cages, kernels, racks and shelves) – $30,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for start-up inventory (stocking with a wide range of pets such dogs, cats, fish and birds and pet foods and pet supplies, such as collars, leashes, health and beauty aids, shampoos, medication, toys, pet containers, dog kennels and cat furniture et al) – $80,000
- The cost for store equipment (cash register, security, ventilation, signage) – $4,750
- The cost of purchase and installation of CCTVs: $2,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The cost of launching a website: $600
- Miscellaneous: $2,000
From the rough estimate above, you will need a minimum of two hundred and forty – six thousand nine hundred and eighty USD ($246,980) to establish a medium scale but standard pet store in any city in the United States of America. Please note that this amount includes the salaries of all the staff for the first three months of operation.
In Conclusion,
Please note that this is a rough estimate and we usually advise our readers to have a clear picture of what they want to achieve, go to the market or directly contact wholesalers and suppliers of pet products you want to have in your store in order to get the real time prices of these items.
The truth is that if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.