Start a chicken renting service by following these 9 steps:
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 renting service. 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 long it will take you to break even?
- 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 renting service?
Much of the costs incurred will come from the initial start up. You will need to purchase:
- Hatched chicks- depending on the types and if sexed - a 100 count will cost between $150-$250.
- Materials for building coops and enclosures - $500
- Chicken food, vitamins, feed, and watering troughs - $350
- Incubators and heat lamps (for winter storage) - $400
What are the ongoing expenses for a chicken renting service?
Much of the ongoing expenses of a chicken renting business will come from maintenance and upkeep. You will be replacing:
- Chickens who are too old or no longer produce eggs
- Rental coops which have been damaged or are worn from age
- Feed and vitamin supplements for livestock
Who is the target market?
Customers who desire more control over the quality of food they eat or who are of the more adventurous type will be ideal for chicken rentals. Additionally, many families explore chicken renting as a food source and as a teaching/learning opportunity for themselves and their children. The temporary nature of chicken renting is also appealing to those who might not want to commit to the long term care of chickens.
How does a chicken renting service make money?
Chicken rental businesses creates revenue from the customers paying to keep rental chickens in their backyards. Your business can also rent out coops for an additional fee.
How much can you charge customers?
Chicken rentals usually consist of two chickens and the necessary supplies to care for and maintain the birds. Average costs for a two chicken set-up range between $250-$500, depending on the type of chickens and the amount/quality of the supplies.
How much profit can a chicken renting service make?
This figure will fluctuate, depending on the number of rentals and the period of time they are renting. If an average rental cost is $350 for 6 months and you have 20 rentals, that equates to $7,000 gross.
How can you make your business more profitable?
Consider other livestock for rental, such as ducks, goats or sheep. More and more backyard farmers are looking to try small scale farming to see if it’s viable for them. By providing rentals and expert advice, they are able to try their hand with less danger of failure.
What will you name your business?
Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.
After registering a domain name, consider setting up a professional email account (@yourcompany.com). Google's G Suite offers a business email service that comes with other useful tools, including word processing, spreadsheets, and more. Try it for free
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC prevents you from being personally liable if your chicken renting service is sued. There are many business structures to choose from including: Corporations, LLC's, and DBA's.
Form Your LLC
Read our Guide to Form Your Own LLC
Check out the Top Business Formation Services from our friends at StartupSavant.
You should also consider using a registered agent service to help protect your privacy and stay compliant.
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?.
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
- 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: Find the right bank for you, read our review of the Top 5 Banks for Your Small Business
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.
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 renting 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.
How to promote & market a chicken renting service
Look to social media and a business website as your best sources of marketing. Connect with backyard farming communities. Word of mouth is still an effective tool for promotions.
How to keep customers coming back
This type of business relies on the return customer, as many will send their chickens back to the farm during winter months and will rent them again in the spring. Offer loyalty discounts or incentives to continue business with you. Become familiar with your customers and what they want from the rentals. Then, you can consider specializing the types of chickens you rent out. Some chickens will lay more eggs than others, and others even lay eggs of different colors. These factors may be attractive to certain repeat customers.
STEP 9: Establish your Web Presence
A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.
Start A Chicken Renting Service 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?
Individuals or families who have farming experience will find this business rewarding and profitable. Those with knowledge about how to raise and care for chickens will be at a particular advantage. Since you will need to host many chickens and store equipment for setting up coops at your customers' homes, you will need to have a decent amount of land available.
What happens during a typical day at a chicken renting service?
This is a seasonal business, so demand for chicken rentals will fluctuate throughout the year. This will also depend on your local climate.
In the fall:
- Collecting chickens and supplies for winter storage
- Re-stocking supplies for winter care of chickens
- Contacting customers who decide to keep chickens through the winter to give details about cold weather care techniques
In the spring:
- Replying to customer requests for chicken rentals
- Delivering birds and supplies to customers
- Incubating, hatching, and rearing chicks to egg-laying adults
- Contacting supply vendors for re-stocks of customer supplies
What are some skills and experiences that will help you build a successful chicken renting service?
Having experience in farming or raising livestock will prepare you for this type of business. Construction experience, used for building the coops and enclosures, is also a positive. Additionally, being able to communicate with potential customers, both in writing and orally, will serve you well.
What is the growth potential for a chicken renting service?
Renting chickens is a fairly new idea, but is quickly gaining traction and appeal. Customers who want more control over the quality of eggs they eat and have a desire to try farming on a small scale will be interested in the business/rentals.
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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.
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 renting service?
Make sure you have experience in raising and caring for livestock, particularly chickens or other foul. There will be a mortality rate from predators, weather, and overall health. You must manage these losses as best you can for continued success. You should also:
- Research your area to see if it is financially viable. If no one in your area has room or desire to raise backyard chickens, you may want to reconsider.
- Contact local farmer’s markets and farm to table groups to advertise your services.
- Connect with local food communities and small-scale DIY urban/backyard farmers, as these are often where the majority of your customers will come from.
How and when to build a team
More than likely, you will have a small operation to start with, unless you are already a farmer looking to shift the focus of your business. Care and maintenance isn’t too demanding and can be handled by two or three people easily. Seasonal employment may be necessary, during the spring and fall, when chickens and supplies are being shipped out or returned.