Opening a pet store is an animal lover’s dream come true. Running your own pet store presents the unique opportunity to interact with animals and be your own boss. Before you get started, it is important to be aware that certain regulations and requirements apply to selling live animals, equipment and pet supplies. Upholding industry standards and meeting regulations are key to ensuring your business flourishes. This article outlines how to set up a business and establish a successful pet store in Australia.
Develop a Business Plan
Before you take steps to establish your new business, mapping out the finer details of a business is a useful way to organise your vision. A business plan should set out your goals for the future and outline the steps necessary to help you achieve them. Consider including the following details:
- market research;
- proposed suppliers;
- potential clientele;
- predicted revenue; and
- a financial plan for the first few years.
A well-developed business plan can also be instrumental in securing a loan to help your business get on its feet.
Decide What Your Pet Store Will Sell
Start by conducting market research to help ensure your business is competitive in the market. The breeds of animals you stock can be a point of difference – you may choose to stock a wide variety of animals or choose to specialise in rare breeds.
You should consider the services your pet store will offer, if any. Offering ancillary services like dog walking services, aquarium water testing, or animal medication can help your pet store stand out. Having a clear vision of how you intend to deliver these services during the early planning stages of starting a business is vital to a smooth set-up.
Continue reading this article below the formFund Your Pet Store
Planning out your new business’ finances is crucial to its success. You will need to think about start-up costs, as well as whether and when you will be able to make a living from the business. You may need to apply for a bank loan or seek an alternative form of investment with the help of a lawyer. You should also consider the costs and cash flow projections of operating your business. Finding an accountant you trust is a great way to manage your business’ finances.
Establish Your Brand
Your business plan should include the details of how you plan to establish a successful brand. A winning business name that is memorable and marketable is key. Brainstorm potential business names early, as this will give you time to research name availability and make sure your branding is unique.
Additionally, plan a marketing strategy to develop your business’ website and engage new customers on social media.
This guide explains the essentials of trade marks and the steps required to register a trade mark.
Set Up Your Business Entity
Choose the right business structure from the start, and if in doubt, speak with a lawyer. Business structuring is one of the most important decisions you will make when setting up your business. There are four common business structures to choose from:
- a company;
- trust;
- become a sole trader; or
- a partnership.
A company structure is an excellent choice to limit liability and protect your personal assets. A company is considered a separate legal entity from its individual shareholders. Therefore, your personal assets are protected if the company itself is sued.
In comparison, a sole trader is on the hook for any risks brought against the business. However, it is a simple and easy structure to establish online. Choose your business structure based on how you foresee your business growing in the future. Do your business plan first because it will help you better understand where your business is going and how it may grow.
You might also consider joining a pet store franchise. A franchise network offers its franchisees business support which means you have an established reputation rather than starting from scratch.
Register a Company
If you decide a company structure is right for you, be ready to determine who will be the shareholders and initial directors of the company. You will also need to set out other details of the company, such as its address and state or territory of incorporation. Of course, you also need an available business name to register against the company.
Find a Suitable Premises
Choosing the right premises in the right location can be a critical deciding factor in your business’ success. This decision will likely be based on the kind of pet store you hope to set up, the kinds of animals you’ll stock and the services and products you will sell.
Once you have decided on the right premises for your pet store, you will likely enter into a commercial lease. During the leasing process, you should also consider the necessary equipment. You may need the approval of the landlord to make certain changes to the property. For example, you may need to drill display cases to the internal walls. The terms of any permanent changes to the premises should be included in the written lease agreement.
Draft Relevant Policies
If you are operating a pet store online, ensure that you have the required policies in place for an online retail business, such as a Website Terms of Use, Privacy Policy and Sales Terms and Conditions. For example, the website “Gumtree” includes a comprehensive ‘Pets Policy’, based on RSPCA guidelines, which you could look at for inspiration. However, you should avoid copying the terms and conditions of another business. You risk these terms being unsuitable and not offering adequate protection.
Comply With Regulations
Local Council Requirements
Get in touch with your Local Council to find out their specific requirements for pets and pet stores in their area. If you do not comply with the requirements of a particular local council, your business can be shut down before it has had a chance to start.
Codes of Practice
Each state and territory has published codes and policies to protect animal welfare, which you must comply with. For example, the NSW Department of Primary Industries has a code that covers animals in pet shops, as well as specific codes for pet grooming, boarding for cats and dogs and the keeping and trading of birds. See the codes online for your state or territory here: QLD, VIC, ACT, TAS, NT, WA and SA.
State Legislation – Microchipping
Microchips are used as a form of electronic identification for pets, usually limited to domestic cats and dogs. Microchipping is mandatory for dogs and cats in the ACT, NSW, QLD, VIC WA and TAS. So, if you are selling dogs, cats or other domestic animals in these states, ensure that you are vigilant about complying with micro-chipping requirements.
Obtain Insurance
Solid insurance can be a lifesaver if something were to go wrong while operating your business. When you have set up your pet store, you should get income protection, general insurance (for equipment, pets in care, etc.) and public liability insurance. Becoming a member of an industry group, such as Pets Australia, can help you work out what insurance you need and get a good deal through the group’s service provider.
Key Takeaways
Running a business can be extremely rewarding, especially if you love working with animals. While it can be distracting to get caught up in the cuteness, ensure you take proper steps for setting up and registering your business. Choose the location of your new business wisely and kick-start your website to help find new customers. Importantly, stay compliant with state and territory legislation and industry codes.
For assistance setting up your new business, our experienced business lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
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