Pet Store Business Plan Template
If you want to start a pet store or expand your current pet shop, you need a business plan.
The following Pet Store business plan template gives you the key elements to include in a winning pet shop business plan.
Pet Store Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a new pet store located in the heart of [location]. We are enormous pet lovers who are passionate about creating the ultimate pet center for all our furry and not-so-furry friends. We offer multiple small animals as pets, including fish, reptiles, gerbils, birds, and guinea pigs. We also have everything a pet owner could need to care for their pets, including food, toys, treats, and beds/cages. [Company Name] aims to be the one-stop shop for everything a person could need to keep their pet happy and healthy.
Products Served
[Company Name] is home to multiple animal species that make for wonderful pets. Some of the animals we provide include:
- Fish
- Birds
- Guinea pigs
- Gerbils
- Reptiles
- Rabbits
- Hamsters
Furthermore, [Company Name] sells everything that is needed to keep one’s pet happy and healthy. This includes food, toys, treats, and beds/cages. We sell these items for the pets listed above as well as cats and dogs.
Customer Focus
[Company Name] will primarily serve residents who live within a 10-mile radius of our store. The demographics of these customers are as follows:
- 57,941 residents
- Average income of $52,900
- 42.4% married
- 39% with children under 18
- Median age: 37 years
These demographics serve our store well. Families are more likely to own pets than single individuals, so having a large family demographic is beneficial. Furthermore, the average income shows that many people in the city have the financial means to adopt pets and care for them properly.
Management Team
[Company Name] is led by [Founder’s Name], who has been a manager of a pet store for [X] years. She has been a pet lover her entire life and is eager to run a popular pet store of her own. The pet store she worked for is similar to ours, selling both small pets and pet supplies. Therefore, her experience has given her the perfect skills and knowledge needed to run such a business.
Success Factors
[Company Name] is uniquely qualified to succeed for the following reasons:
- Our location is in a high-volume area and will be highly convenient to significant numbers of passersby each day.
- The management team has a track record of success in the pet store business.
- The pet store retail business is a proven business and has succeeded in communities throughout the United States.
- [Founder’s Name] has been in the industry long enough to develop lasting connections with local pet owners, suppliers, and leaders in the local pet industry.
Financial Highlights
[Company Name] is currently seeking $450,000 to launch. Specifically, these funds will be used as follows:
- Store design/build: $200,000
- Equipment, supplies, and initial inventory: $100,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a new pet store located in the heart of [location]. We are enormous pet lovers who are passionate about creating the ultimate pet center for all our furry and not-so-furry friends. We offer multiple small animals as pets, including fish, reptiles, gerbils, birds, and guinea pigs. We also have everything a pet owner could need to care for their pets, including food, toys, treats, and beds/cages. [Company Name] aims to be the one-stop shop for everything a person could need to keep their pet happy and healthy.
[Company Name] is led by [Founder’s Name], who has worked in the pet store industry for [X] years. For her entire career, she has operated as a manager of a local pet store, giving her the perfect expertise to run a small pet store business of her own. [Founder’s Name] loves animals and enjoys engaging with pet owners. She is committed to building the best pet store in town and offering everything a pet could need to have a happy life.
[Company Name]’s History
[Company Name] was incorporated as an S-corporation on [date of incorporation]. Soon after, [Founder’s Name] found a retail location and signed a Letter of Intent to sign it. Once the lease is finalized, all operations will run out of the retail location.
Since incorporation, the company has achieved the following milestones:
- Found a retail location and signed a Letter of Intent to lease it
- Developed the company’s name, logo, and website located at [website]
- Determined equipment and inventory requirements
- Began recruiting key employees
[Company Name]’s Products/Services
[Company Name] is home to numerous animals that make for wonderful pets. Some of the animals we provide include:
- Fish
- Birds
- Guinea pigs
- Gerbils
- Reptiles
- Rabbits
- Hamsters
Furthermore, [Company Name] sells everything that is needed to keep one’s pet happy and healthy. This includes food, toys, treats, and beds/cages. We sell these items for the pets listed above as well as cats and dogs.
III. Industry Analysis
Humans have loved owning pets throughout all of human history. There is no bond like that with a pet, so it’s no wonder why people will do everything to give their pet the best life possible. This creates a strong demand for high-quality pet stores that provide the best food, treats, toys, and other supplies to make their pets happy.
One challenge to the industry is the increasing popularity of online stores like Chewy. These stores sell their supplies at lower prices which makes them significant competition. We will sell items both online and in-store. All pricing will be moderate so that everyone can afford the supplies they need for their pets.
Despite these challenges, pet stores are still thriving and proving to be essential businesses for pet lovers. According to Fortune Business Insights, the industry was valued at $208 billion last year and is expected to grow at a CAGR of 5.6% over the next five years. This shows that the industry is still flourishing, despite the present challenges, and will continue to thrive for the foreseeable future.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [location] and the immediate surrounding areas. The city is full of animal lovers and pet parents who are eager to frequent a local pet shop, making it the perfect location to start our business.
Customer Segmentation
We will primarily target the following three customer segments:
- Individuals looking for a new pet: Pets make life fun and fulfilling. Therefore, it’s never a surprise to find out that someone wants to add a new critter to their life. We offer multiple animals for adoption to attract anyone interested in adding a new small pet to their family.
- Pet parents: We also provide supplies needed to make all pets happy. This will appeal to current pet owners who need a convenient place to buy all their toys and food for their current pets.
- Families: Families are far more likely to want a pet or own a pet than single individuals. We will market our store as welcoming and family-friendly to attract local families.
V. Competitive Analysis
Direct & Indirect Competitors
The following establishments are nationwide pet stores and suppliers that provide either direct or indirect competition for customers:
PetSmart
PetSmart is the largest pet retailer in the United States and operates on the belief that pets make us better people. The company focuses on stocking the highest quality items for pets as well as employing helpful and passionate associates. PetSmart also does considerable work to give back to pet communities, which many customers appreciate.
Petco
Petco is another popular nationwide chain that sells pets and pet supplies. Like PetSmart, Petco is passionate about pets and uses that passion to fuel its business decisions. In addition to being a welcoming center for all pet lovers, the company collaborates with nonprofits dedicated to animal welfare to make the world a friendlier place for pets.
Chewy
Chewy is an online pet supply store that sells everything a pet lover could need for a price that is lower than retail. They are also known for their convenience and excellent customer service. Chewy is the perfect option for those who just want the flexibility of online shopping without heading out to a store.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include the following:
- Location: [Company Name] will be located in a high-traffic area that is easy for residents and professionals to access. The location is in the heart of downtown and is easily accessible by foot or car. Thousands of residents and commuters pass through the area every day, so many will notice our welcoming pet store.
- Management: Our management team has years of experience in the pet store industry. [Founder’s Name] particularly has managed local pet stores and brings a wealth of knowledge, experience, and skills that will be invaluable to our business.
- Pricing: We aim to sell all of our animals and products at a moderate price point, so average families and individuals can afford to frequent our store.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the company’s unique value proposition:
- Offering a large selection of adorable pets to adopt
- Providing a diverse selection of pet supplies and food
- Providing excellent customer service
- Offering a fun and welcoming environment that customers will want to frequent
Promotions Strategy
[Company Name] expects its target market to be residents living within a 10-mile radius of its location. [Company Name]’s promotion strategy to reach these potential customers includes:
Website/SEO
[Company Name] will develop a professional website that displays all the supplies and pets that we sell. It will also invest in SEO so that the company’s website will appear at the top of search engine results. [Company Name] will maintain a website and publish frequent newsletters and blogs to educate our customers on promotions, pet care tips, and new products.
Social Media
[Founder’s Name] will create the company’s social media accounts and invest in ads on all social media platforms. The company will use targeted marketing to appeal to our target demographics.
Pre-Opening Events
Before opening the shop, [Company Name] will organize pre-opening events designed for prospective customers, local merchants, and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts, and/or provide other inducements for people to frequent the store.
Customer Loyalty Programs
[Company Name] will create a winning customer loyalty program to keep its best clients coming back again and again. The program will include discounts, deals, and promotions that non-loyalty customers will not have access to.
Word of Mouth Marketing
[Company Name] will encourage word-of-mouth marketing from loyal and satisfied clients. The company will use recommendations and word-of-mouth marketing to grow its customer base through the network of its existing customers. [Company Name] will be incentivizing its existing customer base to encourage their friends to come by and check out our selection of pet supplies and animals.
Pricing Strategy
[Company Name] pricing will be moderate, so customers feel they receive great value when patronizing our pet shop. Our price points aim to be slightly cheaper than our competitors but high enough that we still make a profit.
VII. Operations Plan
Functional Roles
In order to execute [Company Name]’s business model, the company needs to perform many functions, including the following:
Retail Functions
- Provide customer service
- Educate customers on their potential pets
- Operate cash register
- Stock shelves
- Merchandise displays
- Janitorial functions
Animal Care Functions
- Feed animals
- Clean out cages
- Conduct health checkups
- Groom and bathe animals as necessary
Administrative Functions
- Bookkeeping
- Marketing
- General administrative functions
- Sourcing and storing supplies
- Hiring and training staff
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s Name], who has been a manager of a pet store for [X] years. She has been a pet lover her entire life and is eager to run a popular pet store of her own. The pet store she worked for is similar to ours, selling both small pets and pet supplies. Therefore, her experience has given her the perfect skills and knowledge needed to run such a business.
Hiring Plan
[Founder’s Name] will serve as the Store Manager. In order to launch the store, she will need to hire the following personnel:
- Animal Caretakers (2 to start)
- Sales Associates/Cashiers (3 to start)
- Assistant Managers (1 to start)
- Marketing Assistants (1 to start)
- Accountants (1 to start)
- Buyers (1 to start)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from the sale of animals and pet supplies.
The major costs for the company will be inventory costs, animal care expenses, labor expenses, and rent for the retail location. In the initial years, the company’s marketing spending will be high as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $450,000 to launch. The capital will be used for funding capital expenditures, labor, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
- Store design/build: $200,000
- Equipment, supplies, and initial inventory: $100,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | |
|---|---|
| FY 1 | 75 |
| FY 2 | 100 |
| FY 3 | 125 |
| FY 4 | 150 |
| FY 5 | 175 |
| Annual Lease (per location) | $50,000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
