If you are looking for a lucrative opportunity, this may be it. The economic downturn substantially reduced the average person's disposable income, harming sales in pet shop industry.
However, the global economy, and disposable income, are slowly coming back. And, people are increasingly purchasing pets, services for their pets, and supplies.
Two giant retail chains account for more than half of the industry's revenue. However, there is still plenty of room available for smaller operations to effectively compete.
Pet Shop Business
For more and more people, pets are a replacement for children. Many are willing to spend top dollar and purchase the best in quality.
If you happen to find a pet shop business for sale, jump on it right away!
The real challenge in running this type of company is to determine which niche is profitable in your locality. Niches include all-natural foods, specialty foods for pets with diabetic problems, food for exotic animals, and much more.
Determine how much cash you can spend on inventory. You might also consider drop shipping, which means products are sent directly from the manufacturer to the customer.
Specializing in a niche also helps keep your need for space to a minimum. You can always expand your operations and product offerings later.
Upscale products in particular are being demanded more and more. Consider opening your location near an affluent suburb. Startup costs may be high, but there will be plenty of spending down the road.
Develop strong working relationships with wholesalers. Many storeowners choose to manufacture their own products after a few years of operation.
Attend tradeshows to develop contacts. Because demand is strong, you should have no trouble funding suppliers. And, you can leverage the number of suppliers to find lower prices.
You can also run this type of company out of your own home. This minimizes your initial financial risk and helps you test your market. Once you begin generating a profit, you can then choose where to expand your operations.
Buying a pet shop business is a good idea because future demand remains strong. Selling a pet shop business, however, should get you a good price.