How to Start a Pet Food Business

Many people take excellent care of their pets, which includes feeding them great foods. Pet food businesses create high-quality pet foods for people’s pets. Most businesses offer a variety of recipes, so pet owners can find one that’s perfect for their pets. According to IBISWorld, the pet food industry brings in $27 billion annually and is growing.

Learn how to start your own Pet Food Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services.

Start a pet food business by following these 10 steps:

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

We have put together this simple guide to starting your pet food 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:

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 Pet Food 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.

Want some help naming your pet food business?

Business Name Generator

What are the costs involved in opening a pet food business?

A pet food business can be started with fairly little upfront capital. In many states, business owners can be approved to assemble pet foods in their kitchens. This eliminates any need for a processing facility, and businesses can start by renting a booth at a farmers market or selling through established retailers so that they don’t have to purchase a storefront.

Other than any licensing fees, the main expense that’s left is the raw materials needed to assemble and package pet food. To save money on these supplies, business owners can purchase what they need from wholesalers. Finding a wholesaler with a low minimum order will help business owners keep their initial investment as low as possible, until the profits from sales can be used to place larger orders for supplies.

What are the ongoing expenses for a pet food business?

The ongoing expenses for a pet food business include the cost of purchasing additional ingredients, and shipping or delivery fees. The cost of ingredients becomes small once a business can afford to place large wholesale orders, and shipping or delivery fees are usually built into what customers are charged.

Who is the target market?

A pet food business’ ideal customer is a pet owner whose is concerned about what their pet eats and has discretionary income. Such a pet owner will be willing and able to pay for a high-end pet food.

How does a pet food business make money?

A pet food business makes money by selling pet food. While businesses may make food for almost any pet, most specialize in foods for dogs or cats because they’re the most popular pets.

How much can you charge customers?

While cheaply made pet foods can cost just a few dollars per pound, high-end, local pet food companies frequently charge much more. Chef K9 charges between $7.25 and $10.25 per pound, and many other companies are in this price range.

How much profit can a pet food business make?

Pet food businesses can be extremely profitable. Businesses that provide organic and gourmet pet foods can see profit margins as high as 40 percent. While the exact profit a business makes depends on how large it grows to be, a successful pet food business could break a six-figure annual profit with margins like these.

How can you make your business more profitable?

Pet food businesses can increase their revenue by making gourmet pet treats in addition to everyday pet foods. Treats are inexpensive to make, and they’re an easy item promote as an add-on purchase.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

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 pet food business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

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.

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 through the IRS website. If you would like to learn more about EINs, read our article, What is an EIN?

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.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

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.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

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 pet food 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.

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.

FInd out what types of insurance your Pet Food Business needs and how much it will cost you by reading our guide Business Insurance for Pet Food Business.

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.

Recommended: Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker.

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 pet food business

Pet food businesses may be marketed both locally and online. Business owners may be able to reach local customers by partnering with independent pet stores, pet sitters, dog walkers and groomers in their area. These professionals already have relationships with pet owners who trust them, and they may be willing to recommend a pet food that’s healthy and gives them a commission.

Online, businesses may sell through their own site or via a retailer like Amazon. When selling through a large retailer, owners should carefully calculate their prices so that all additional fees are covered.

How to keep customers coming back

Pet food businesses can set themselves apart from other businesses in the industry by offering truly unique pet food. Businesses can do this by creating one-of-a-kind recipes or by packaging their pet food in an unusual way. VGRRR, for example, makes a vegan pet food for cats and dogs.

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.

Recommended: Get started today using our recommended website builder or check out our review of the Best Website Builders.

Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.

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 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

Anyone who is passionate about animals and enjoys coming up with recipes may like running a pet food business. Having a passion for animals helps business owners connect with potential customers, and a love for experimenting with recipes will help a business owner come up with unique foods to sell.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a pet food business?

A pet food business owner’s daily activities include:

  • blending ingredients to create pet foods
  • cleaning the facility where they create pet foods
  • delivering, shipping or selling pet foods to customers
  • paying bills and seeing to other administrative duties as needed

When not doing one of these tasks, business owners may spend time coming up with new recipes or marketing their business.

What are some skills and experiences that will help you build a successful pet food business?

As the Association of American Food Control Officials makes clear, pet food can’t be made from “just any” ingredients. Business owners must know what ingredients are safe for which animals (and which ingredients aren’t safe). Additionally, they should be able to develop a nutritionally balanced pet food.

There are several online courses that business owners can take to learn how to build healthy pet food recipes. The Canine Health Nut, Dogs Naturally Magazine and Holly and Hugo all offer programs. (Dogs Naturally Magazine provides a certification.)

After taking an online class, business owners may want to purchase a few books about animal nutrition. These serve as handy reference guides, and there are several books for different types of animals. A few popular titles include Raw and Natural Nutrition for Dogs, Canine and Feline Nutrition, and Feline Nutrition.

What is the growth potential for a pet food business?

A pet food business may be a small, local business or sell pet foods throughout the country. For example, RAW by Canines First is a local pet store in Dallas, Texas that has its own line of dog food. On a national level, Nature’s Recipe reaches pet owners throughout the United States by selling its foods on Chewy.

Many local pet food businesses expand their potential customer base by selling online, in addition to locally through physical retail locations. Both Chef K9’s and Lucky Dog Cuisine do this.

Not sure if a pet food business is right for you? Try our free Business Idea Generator and find your perfect idea.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

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:

  • Funding
  • Events
  • Guides
  • Support

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 pet food business?

Many pet owners who are willing to pay a premium for gourmet pet food may be particular about the ingredients in their pet’s food. In order to cater to these customers, business owners should have several different pet food recipes available when their business launches.

How and when to build a team

Most pet food business owners start out assembling and selling their pet foods themselves. As a business grows and has the revenue necessary to support employees, business owners can add staff.

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