Start a chicken diaper business by following these 10 steps:
- Plan your Chicken Diaper Business
- Form your Chicken Diaper Business into a Legal Entity
- Register your Chicken Diaper Business for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Chicken Diaper Business
- Get the Necessary Permits & Licenses for your Chicken Diaper Business
- Get Chicken Diaper Business Insurance
- Define your Chicken Diaper Business Brand
- Create your Chicken Diaper Business Website
- Set up your Business Phone System
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your chicken diaper business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a chicken diaper business?
The startup costs for a chicken diapering business are extremely low.
Business owners who already have a sewing machine and serger need little more than a website and materials. A website can be created for less than $100 on platforms like Wix and Shopify. Materials cost little, and business owners who have limited capital can start out with only what they need to create their store’s sample diapers. The materials required for customers’ orders can be purchased after orders are placed.
Those who don’t have a sewing machine and serger will need to acquire each. Amazon has many sewing machines available for a few hundred dollars, and sergers run in a similar price range. (A computerized sewing machine isn’t necessary.)
What are the ongoing expenses for a chicken diaper business?
The ongoing expenses for a chicken diaper business are minimal. They mostly consist of website hosting and maintenance fees and material costs. Businesses that have a seamstress must also factor in employee wages.
Who is the target market?
The target market for chicken diaper businesses is primarily people who have smaller flocks of chickens. Some customers are backyard chicken raisers, generally keeping flocks of twenty or fewer birds. Others are urbanites who have just one or two birds indoors.
How does a chicken diaper business make money?
A chicken diaper business makes money by selling diapers that are designed for poultry. Most businesses sell diapers individually at retail prices, but business owners could theoretically also sell diapers wholesale.
How much can you charge customers?
How much profit can a chicken diaper business make?
Successful chicken diaper businesses bring in a substantial revenue. Pampered Poultry sells between 500 and 1,000 diapers each month, generating an annual revenue over $50,000. Since operating expenses are so low, most of this is profit.
How can you make your business more profitable?
A chicken diaper business can increase revenue by selling other, related products. Pampered Poultry also has peep pouches (for chicks), saddles (to protect hens during mating) and dresses (which serve no practical function). The business sells around 100 dresses per month. FeatherWear makes diapers for many kinds of birds.
What will you name your business?
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Chicken Diaper Business Name Generator
When registering a business name, we recommend researching your business name by checking:
- Your state's business records
- Federal and state trademark records
- Social media platforms
- Web domain availability.
It's very important to secure your domain name before someone else does.
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your chicken diaper business is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.
Open net-30 accounts
When it comes to establishing your business credit, net-30 vendors are considered the way to go. The term "net-30," which is popular among vendors, refers to a business credit arrangement where the company pays the vendor within 30 days of receiving goods or services.
Net-30 credit terms are often used for businesses that need to obtain inventory quickly but do not have the cash on hand.
Besides establishing business relationships with vendors, net-30 credit accounts get reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our guide on the best net-30 vendors so you can start building business credit now, so you never have to worry about cash flow in the future. Keep in mind that poor cash flow is the #1 reason businesses fail!
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment later on.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
Make LLC accounting easy with our LLC Expenses Cheat Sheet.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate a chicken diaper business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
For information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
STEP 7: Get business insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Learn more about General Liability Insurance.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
How to promote & market a chicken diaper business
Chicken diapers are as much fashion pieces as they are functional items, and their fashion side lends itself to social media. Many customers post pictures of their chickens in diapers and other duds on Instagram and Facebook, which are also natural marketing channels for businesses. In addition to asking customers to tag their photos with a company-specific hashtag, business owners can also manage their own channels.
How to keep customers coming back
Business owners can keep their customers returning by regularly coming out with new designs. Since fashion is as important as function, many customers will buy pieces that they like well before their chicken’s current diapers are worn out.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2022 to find the best phone service for your small business.
Recommended Business Phone Service: Nextiva
Nextiva is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
Start A Chicken Diaper Business In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
Is this Business Right For You?
Anyone who is interested in raising urban chickens and likes sewing may enjoy running a chicken diaper business. A passion for the hobby helps business owners connect with their customers and anticipate diapering features that customers will like. Most business owners at least design their own diapers, which requires spending a lot of time sewing.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
What happens during a typical day at a chicken diaper business?
A typical day at a chicken diaper business involves sewing diapers, shipping orders, and ordering supplies as needed. When not working on these tasks, business owners spend time designing new pieces and marketing their business.
What are some skills and experiences that will help you build a successful chicken diaper business?
In order to design chicken diapers well, business owners should have experience owning chickens and sewing. Those who don’t already have chickens may want to spend a year raising them before they get into this line of work.
Anyone who isn’t an accomplished sewer ought to take classes on sewing and/or pattern making. Jo-Ann Fabrics offers in-person sewing classes, and Craftsy has online sewing courses. SkillShare and Craftsy both have online pattern-making courses.
What is the growth potential for a chicken diaper business?
Chicken diaper businesses are limited by the size of the market. While businesses can be quite successful and ship to all 50 states, even the most well-known ones are still small businesses. Some of the more recognized names in the industry are Pampered Poultry, My Pet Chicken, and FeatherWear.
Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a chicken diaper business?
Business owners can quickly increase their brand’s visibility and credibility by supplying diapers for show chickens. Even if a chicken doesn’t win its show, everyone at the show will see the diaper and the business can advertise that the diapers were used in the show.
How and when to build a team
Business owners don’t have to hire employees as long as they can do all the sewing themselves. Some, however, choose to hire a seamstress to help with the workload. According to Indeed, the average wage for a seamstress is $12.15 per hour.