How to Start a Chicken Diaper Business

Start a chicken diaper business by following these 10 steps:

1. Plan your Chicken Diaper Business
2. Form your Chicken Diaper Business into a Legal Entity
3. Register your Chicken Diaper Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Chicken Diaper Business
6. Get the Necessary Permits & Licenses for your Chicken Diaper Business
7. Get Chicken Diaper Business Insurance
8. Define your Chicken Diaper Business Brand
9. Create your Chicken Diaper Business Website
10. Set up your Business Phone System

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.

Exploring your options? Check out other small business ideas.

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 will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

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

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

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.

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?

Pampered Poultry sells their diapers for around $18, and Love A Chicken sells diapers for about $17. My Pet Chicken’s diapers are custom-made and cost nearly $30.

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.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

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.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

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!

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.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money 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.

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.

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.

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.

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, and My Pet Chicken.