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How to Open a Pet Store: Cost, Location and Profit Potential

Written by:

Esther is a business strategist with over 20 years of experience as an entrepreneur, executive, educator, and management advisor.

Edited by:

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

How to Open a Pet Store: Cost, Location and Profit Potential

Fast Facts

Investment range

$13,550 - $20,100

Revenue potential

$182,000 - $730,000 p.a.

Time to build

1 – 3 months

Profit potential

$36,000 - $145,000 p.a.

Industry trend




Americans love their pets so much they spend more than $100 billion on them each year. Pet stores alone are a $22 billion industry, so if you’re a pet lover, you could open your own pet store and help people spoil their animals while making a good living.  

A love of pets, though, is not enough to build a successful pet store. You’ll need some business know-how, and this step-by-step guide is full of all the insight you need to begin your animal-loving entrepreneurial journey.

Step 1: Decide if the Business Is Right for You

Pros and cons

Starting a pet store has pros and cons to consider before deciding if it’s right for you. 


  • Share Your Passion – Show your love of animals with quality products
  • Growing Industry – Pet ownership and spending are on the rise
  • Good Money – Profit margins on pet products are high


  • High Startup Costs – Shop rent and inventory aren’t cheap
  • Competitive Market – Market is saturated with pet stores

Pet Store Industry trends

Overall spending on pets in the US is nearly $110 billion annually, more than double what it was a decade ago.

Industry size and growth

pet store industry size and growth

Trends and challenges

pet store business Trends and Challenges

Trends in the pet store industry include:

  • Pet supplements are growing in demand, particularly those containing cannabidiol (CBD) which is used to treat anxiety in dogs. Pet wipes and pet toothpaste are also increasingly popular. 
  • Pet foods with all-natural ingredients are gaining ground. 

Challenges also exist in the pet store industry, including:

  • Pet stores face increasing competition from online pet businesses such as Chewy. This could create an opportunity for an entrepreneur to open a more niche online store, rather than a physical store since the ecommerce market is exploding.
  • Pet owners are seeking a variety of pet product options, which can be a difficult demand for small pet store owners to meet.

Consumer spending

pet store business consumer spending

What kind of people work in pet stores?

pet store industry demographics

How much does it cost to start a pet store business?

Startup costs for a pet store range from $16,000 to about $20,000. The main costs are for space rental, preparation of the space, and inventory. 

Let’s dive into an example. 

Start-up CostsBallpark RangeAverage
Setting up a business name and corporation$150 - $200$175
Business licenses and permits$100 - $300$200
Insurance $100 - $300$200
Business cards and brochures$200 - $300$250
Initial inventory and supplies$6,000 - $8,000$7,000
Rent$1,000 - $2,0001500
Fit-out cost$5,000 - $6,000$5,500
Website$1,000 - $3,0002000
Total$13,550 - $20,100$16,825

How much can you earn from a pet store business?

pet store business earnings forecast

Prices for pet products vary. Your profit margins on products will be about 40% and after rent and overhead, your overall profit margin should be about 20%. 

In your first year or two, your average daily sales could be $500, bringing in a healthy $182,000 in annual revenue. This would mean $36,000 in profit, assuming that 20% margin. As your store gains recognition, sales could climb to $2,000 per day. With expected annual revenue of nearly $730,000, you’d make more than $145,000 in profit.

What barriers to entry are there?

There are a few barriers to entry for a pet store business. Your biggest challenges will be:

  • High startup costs 
  • Stiff competition

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Step 2: Hone Your Idea

develop a business idea

Now that you know what’s involved in starting a pet store business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research pet stores in your area to examine their products, price points, and customer reviews, as well as what sells best. You’re looking for a market gap to fill. For instance, maybe the local market is missing an organic pet food store.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as specialty pet toys and treats.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products

You should choose the most in-demand products to stock in your store, and as wide a variety as you can fit. You might also consider adding additional services such as pet grooming

Here are some of the most common products you might find in a pet store:

  • Food & Treats: For dogs, cats, birds, fish, reptiles, rodents, and other pets.
  • Toys: Balls, squeaky toys, catnip toys, chew toys, etc.
  • Collars, Leashes, and Harnesses: For dogs and cats primarily, but also for animals like ferrets and rabbits.
  • Bedding & Litter: Cat litter, bedding for rodents and reptiles, etc.
  • Cages, Tanks, and Enclosures: For birds, rodents, reptiles, and fish.
  • Health & Wellness: Flea and tick prevention, wormers, vitamins, and supplements.
  • Grooming Supplies: Brushes, nail clippers, shampoos, conditioners, and grooming tools.
  • Bowls & Feeders: For food and water.
  • Travel Carriers: For cats, dogs, birds, and small animals.
  • Cleaning Supplies: Cage cleaners, aquarium maintenance tools, and odor eliminators.

For those looking to venture beyond the conventional, here are some specialized products:

  • Pet Clothing: Coats, sweaters, and costumes for dogs and cats primarily, though sometimes for smaller animals too.
  • Specialized Habitats: Such as ant farms, butterfly gardens, or hermit crab habitats.
  • Advanced Aquarium Gear: Protein skimmers, UV sterilizers, and reverse osmosis systems for saltwater tanks.
  • Exotic Animal Foods: For less common pets like tarantulas, scorpions, or hedgehogs.
  • Pet Cameras: To monitor or interact with pets while owners are away.
  • Calming Aids: Such as pheromone sprays and diffusers.
  • Pet Tech: Interactive toys, pet trackers, and automated feeders.
  • Specialized Training Tools: Clickers, agility equipment, or advanced training devices.
  • Books & Magazines: Related to pet care, training, or species-specific topics.
  • Unique Decor: For fish tanks or reptile enclosures that go beyond the typical.
  • Breeding Supplies: For hobbyists interested in breeding fish, birds, or other animals.

How much should you charge for pet products?

You’ll need to research the market to see what various products are selling for but expect to markup products by between 30% and 40% from wholesale prices. Overall, after rent and overhead, you should aim for a profit margin of about 20%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price point. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market is pet owners, which is obviously a very broad market. You’ll need to spread out your marketing efforts to include sites like Instagram, Facebook, and LinkedIn. You’re also mainly targeting people in your local area, so you can do local promotions.

Where? Choose your pet store location

Choosing the right location for your pet store is crucial for attracting customers and ensuring its success. Look for a spot in a busy commercial district with high foot traffic, such as a shopping mall or a popular downtown area.

Depending on the type of pet store you plan to start, you may also want to consider the proximity to complementary businesses, such as veterinary clinics or pet training centers.

When selecting a location, ensure that it meets all necessary safety and regulatory requirements for pet stores. By strategically choosing the right location, you can establish a profitable and successful pet store that provides high-quality products and services to customers and stands out in the competitive pet industry.

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and you’ll need to rent out a storefront. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

pet store business rating

Step 3: Brainstorm a Pet Store Name

Here are some ideas for brainstorming your business name:

  • Short, unique, and catchy names tend to stand out
  • Names that are easy to say and spell tend to do better 
  • Name should be relevant to your product or service offerings
  • Ask around — family, friends, colleagues, social media — for suggestions
  • Including keywords, such as “pet store” or “pet supplies”, boosts SEO
  • Name should allow for expansion, for ex: “Furry Friends Emporium” over “The Bird’s Nest”
  • A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Pet Store Business Plan

Here are the key components of a business plan:

what to include in a business plan
  • Executive Summary: A concise summary outlining the key aspects of the pet store business, including its mission, goals, and anticipated success factors.
  • Business Overview: A brief overview of the pet store, including its name, location, legal structure, and a snapshot of its mission and vision.
  • Product and Services: Details about the specific products (pet supplies, food, accessories) and services (grooming, training) offered by the pet store.
  • Market Analysis: An examination of the pet industry, target market demographics, trends, and potential customer needs to justify the market opportunity.
  • Competitive Analysis: Evaluation of other pet stores in the area, their strengths and weaknesses, and how the new business aims to differentiate itself.
  • Sales and Marketing: Strategies for promoting and selling pet products and services, including advertising, promotions, and customer acquisition plans.
  • Management Team: Introduction to key team members, their roles, and relevant experience in managing a pet store.
  • Operations Plan: Detailed information on the day-to-day operations of the pet store, covering suppliers, inventory management, staffing, and store layout.
  • Financial Plan: Projections for the financial performance of the pet store, including startup costs, revenue forecasts, and a break-even analysis.
  • Appendix: Supplementary materials such as resumes of key team members, detailed financial spreadsheets, and any additional documentation supporting the business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to pet stores. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your pet store will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

types of business structures
  • Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
  • Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
  • Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
  • C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
  • S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just needs to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have. 

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist, and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

types of business financing
  • Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
  • SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
  • Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
  • Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
  • Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
  • Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a pet store business. 

Step 8: Apply for Pet Store Business Licenses and Permits

Business Licenses and Permits

Starting a pet store business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. Some states require pet stores to have a pet store license. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your pet store business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

types of business insurance
  • General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
  • Business Property: Provides coverage for your equipment and supplies.
  • Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
  • Worker’s compensation: Provides compensation to employees injured on the job.
  • Property: Covers your physical space, whether it is a cart, storefront, or office.
  • Commercial auto: Protection for your company-owned vehicle.
  • Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
  • Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

Launching a Business

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You may want to use industry-specific software, such as LS Retail, PetShop360, or Korona, to manage your purchasing, inventory, sales, and invoices.


  • Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero
  • If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google. 


Here are some powerful marketing strategies for your future business:

  • Social Media Contests: Engage pet owners by hosting fun and shareable contests on platforms like Instagram and Facebook, encouraging them to post pictures of their pets with your products for a chance to win prizes.
  • Local SEO — Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
  • Partnerships with Veterinarians: Establish partnerships with local veterinarians to cross-promote each other’s services, perhaps offering exclusive discounts for pet owners who visit both your store and the vet.
  • In-Store Events and Workshops: Host regular events or workshops in your store, such as pet grooming demos or educational sessions on pet care, creating a sense of community and offering value beyond just products.
  • Loyalty Programs: Implement a loyalty program that rewards customers for repeat business, offering discounts, free products, or exclusive access to promotions after a certain number of purchases.
  • Pet Adoption Drives: Collaborate with local animal shelters to organize pet adoption drives in or near your store, drawing in potential customers who may be looking to adopt a new furry friend.
  • Customer Testimonials: Encourage satisfied customers to share their experiences and testimonials on your social media or in-store, building trust and credibility among potential customers.
  • Themed Promotions: Run themed promotions around holidays or pet-related events, creating excitement and a reason for customers to visit your store during specific times of the year.
  • Pet-Friendly Spaces: Make your store pet-friendly and promote it as a welcoming environment for pet owners to bring their animals, encouraging them to spend more time browsing and shopping.
  • Local Sponsorships: Sponsor local pet-related events, sports teams, or community gatherings, enhancing your brand’s visibility and aligning your business with the local pet-loving community.
  • Referral Programs: Implement a referral program where existing customers can earn rewards for referring friends or family to your store, leveraging word-of-mouth marketing.

Focus on USPs

unique selling proposition

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your pet store meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your pet store business could be: 

  • Organic pet food to keep your babies healthy
  • Buy local for your furry friends
  • Bring your pets and let them do the shopping


You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a pet store, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in pet stores for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in pet stores. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business. 

Step 12: Build Your Team

Building a Team for a New Business

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a pet store business would include:

  • Store Clerks – make sales, customer service
  • General Manager – scheduling, staff management, accounting
  • Marketing Lead – SEO strategies, social media, other marketing

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.  

Step 13: Run a Pet Store – Start Making Money!

Running a Business

Americans spent over $100 billion on their pets in 2021, and $22 billion of that was in pet stores. You can capitalize on that spending by opening your own pet store. It takes a bit of an investment, but you’ll get a great return on that money. 

You’ll be providing quality products to pets in your community and making them smile. It’s important to keep up with the trends so you’ll know which pet products are popular. Now that you know the nitty-gritty of the business, you’re ready to jump in and get your new pet store off the ground!

Pet Store Business FAQs

How profitable can a pet store be?

Pet stores are a $22 billion industry in the U.S., and larger pet stores are very profitable. Markups on pet items are relatively high, so you can achieve decent profit margins. 

Are small pet stores profitable?

Yes, small pet stores can be profitable. Markups on pet items are high, so if you get a lot of volume, you can make a good profit. The key is to have a very convenient location and to offer as big a variety of items as you can.

How do I make my pet store successful?

To make your pet store successful, focus on offering a diverse range of high-quality pet products, providing excellent customer service, building a strong online and offline presence, and implementing effective marketing strategies to attract and retain customers.

How can I improve my pet store customer experience?

You can improve your pet store customer experience by creating a welcoming and organized store layout, training knowledgeable and friendly staff, offering personalized recommendations, providing convenient services like grooming or pet training, and actively seeking and incorporating customer feedback to enhance your offerings.

What do pet owners buy most?

Pet owners often purchase food, treats, toys, grooming supplies, and essential pet care products such as collars, leashes, and bedding. Health and wellness products like vitamins, supplements, and hygiene items are also commonly bought.

How can I differentiate my pet store business from competitors in the market?

Differentiate your pet store business by specializing in a particular niche, such as natural or organic pet products, unique and exclusive product lines, or offering specialized services like pet nutrition consultations or pet adoption events. Create a distinctive brand identity, focus on exceptional customer service, and provide a personalized shopping experience.

What kind of partnerships can I build for my pet store to ensure new clientele?

Build partnerships with local animal shelters or rescue organizations to promote pet adoption and offer referral incentives. Collaborate with veterinary clinics or pet trainers for cross-promotion and joint events. Establish relationships with local pet businesses like groomers, trainers, or boarding facilities to refer customers to each other.


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How to Open a Pet Store: Cost, Location and Profit Potential