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.
Download the Pet Store business plan template (including a customizable financial model) to your computer here <–
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:
- 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)
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.
Download the Pet Store business plan template (including a customizable financial model) to your computer here <–
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.
The precise demographics for Paws Pet Store are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
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.
Download the Pet Store business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Paws Pet Store will be able to offer the following advantages over their competition:
- 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.
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.
Pricing
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.
Download the Pet Store business plan template (including a customizable financial model) to your computer here <–
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
Management Team
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:
- 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
Download the Pet Store business plan template (including a customizable financial model) to your computer here <–
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
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
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: