How to Start a Chicken Renting Service

Start a chicken renting service by following these 10 steps:

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

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.

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 Renting Service 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 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.

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 renting service 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 renting 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?

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.