Hi. I am contemplating openig my own fish store. I was hoping there was someone who has owned or is currently owning a fish store that could give me some advice.The store Im thinking of opening is going to be mainly saltwater fish, live rock, and invertabates with a small selection of freshwater fish. I would alson be carrying supplies n such. Could anyone tell me their experiences of owning a pet fish store. Was it profitable or a waste of money? How much was needed to open? Any information would be helpful. My target population is 44,000 people. Do you think it will work?
Opening A Fish Store
- Thread starter calcofish
- Start date
redpaulhus
New member
some great reading:
http://www.birdsill.com/otc/archives/000041.html
http://www.birdsill.com/otc/archives/000041.html
Things to consider.
A. Median family income. Saltwater fishtanks ain't cheap. Your less likely to find tanks in areas where the population is working to make ends meat.
B. Competition, I'm no expert but lets say 1% of the population is interested in saltwater fishtanks. This is a customer base of about 440 people. Are all 440 people your customers? Do you have to share them with other stores?
C. Operating costs are going to be HIGH. Lights, pumps, livestock death are going to lead to high monthly upkeep. Start with Rent + Insurance + Electric bill + disposables ( food/salt/etc ) and figure out how much you need to make each month to pay the bills.
My guess is unless an abnormally high % of people in your area like saltwater OR you run a service business in addition that maintains large tanks for people your not going to be able to afford it.
A. Median family income. Saltwater fishtanks ain't cheap. Your less likely to find tanks in areas where the population is working to make ends meat.
B. Competition, I'm no expert but lets say 1% of the population is interested in saltwater fishtanks. This is a customer base of about 440 people. Are all 440 people your customers? Do you have to share them with other stores?
C. Operating costs are going to be HIGH. Lights, pumps, livestock death are going to lead to high monthly upkeep. Start with Rent + Insurance + Electric bill + disposables ( food/salt/etc ) and figure out how much you need to make each month to pay the bills.
My guess is unless an abnormally high % of people in your area like saltwater OR you run a service business in addition that maintains large tanks for people your not going to be able to afford it.
My local LFS said they spent well over $100,000 just in dry inventory before opening the store: and this is a real small place. Starting a fish shop sounds like its most often a losing proposition. Starting a tank maintenance company, however, requires very little overhead to get started and you can really clean up.
There's a huge thread about just this in Antho...err, the "everything salty" forum.
Dan
There's a huge thread about just this in Antho...err, the "everything salty" forum.
Dan
Here's a thought. You should check into buying an existing store. I know of one guy who did and is seemingly successful.
Buying an exiting store takes less work and initial capital to start I think. A lot of times, you'll be getting a deal on the existing inventory as well.
You could always start out with an online store like dystopian mentioned and then depending the success of that gradually transition into a brick and mortar model.
I am curious about this as well as I too am considering having my own fish store some day.
D.
Buying an exiting store takes less work and initial capital to start I think. A lot of times, you'll be getting a deal on the existing inventory as well.
You could always start out with an online store like dystopian mentioned and then depending the success of that gradually transition into a brick and mortar model.
I am curious about this as well as I too am considering having my own fish store some day.
D.
Thanks everyone for Replying. I guess i shold have given a little more details on my wishes to open a shop.First good thing is the place I am planning on opening is 1200 sq ft. and the rent is everything included for $390 a month.Yeah i know the cost of living is dirt cheap where I live. And Secondly as far as competition in my area there is nil. There is a hardware store that sell a very limited supply of freshwater fish and no saltwater.Like I said their is 44500 people in my area and like Redpaulhus said say 1% are interested thats 445 people. Since their is no compettion I would assume I would get at least that many people a month threw my doors. Say i make 20 a person profit thats $8900 a month $106,800 a year. do you think with that info that my sore will work. My budget to open my dream fish store is 10,000. Will that suffice? Any help and opinions will be apprieciated
Holy crap Batman $390/mo. for a 1200 sq. ft. is a deal
I would not discount the freshwater fish though. A couple of store owners I know have stated to me that their best sellers AND bread-n-butter so to speak are still and by far the freshwater fishes and stuff. Most people can't afford or are too afraid to jump into the salt side and it takes time for them to gradually ease into it. I know I was
D.
I would not discount the freshwater fish though. A couple of store owners I know have stated to me that their best sellers AND bread-n-butter so to speak are still and by far the freshwater fishes and stuff. Most people can't afford or are too afraid to jump into the salt side and it takes time for them to gradually ease into it. I know I was
D.
I think 1% of the population spending 20$ a month is a high high estimate.
plus thats gotta be 20$ income. expenses, startup, upkeep, loss, ect. all factors.
and the internet is and always will be your number 1 competitor.
and freshwater fish will be your bread and butter.
honestly it sounds like your taking your hobby and trying to make it profitable. dont let your personal opinions cloud your judgement and force a business plan that is overly optomistic.
plus thats gotta be 20$ income. expenses, startup, upkeep, loss, ect. all factors.
and the internet is and always will be your number 1 competitor.
and freshwater fish will be your bread and butter.
honestly it sounds like your taking your hobby and trying to make it profitable. dont let your personal opinions cloud your judgement and force a business plan that is overly optomistic.
hyperfocal
New member
Work on a Business Plan. Don't even think of starting a business without one.
I second the business plan. Back-of-the-envelope is fine for now, but you need to be able to make a professional-quality short-term budget.
Right now I'm considering starting a small business (not aquarium related) in about two years, and I'll need all that time just to prepare! I've been reading a lot of advice similar to that given above. A good business plan is what is going to make or break your company in the first year. Pick up a "how to start a business" book and read about some of the basic details.
$10k does seem awfully meagher. I would think your startup paperwork fees (including lawyer/accountant) would suck up a lot of that. The pet shop I mentioned above is smaller than the space you're thinking about, but like I said, they spent over $100k just on inventory.
Dan
Right now I'm considering starting a small business (not aquarium related) in about two years, and I'll need all that time just to prepare! I've been reading a lot of advice similar to that given above. A good business plan is what is going to make or break your company in the first year. Pick up a "how to start a business" book and read about some of the basic details.
$10k does seem awfully meagher. I would think your startup paperwork fees (including lawyer/accountant) would suck up a lot of that. The pet shop I mentioned above is smaller than the space you're thinking about, but like I said, they spent over $100k just on inventory.
Dan
xrunner1234
New member
Where do you get the 1% from? Do you have data to support this or is it just a guess? Out of the 300 employees at the company I work at I'm the only one with a fish tank.
Reefdaddy1
In Memoriam
I own and E store and head foundation to save reefs around the world, Either way you go online or LFS, your gonna need quite few things. LIke drop shipping and such, Its an expense and a pain in the beggining, Alot of people drop out quickly, If you have any questions PM me. I can fill you in.
well for what its worth, this website has 100,000 members. that on an international scale; not claiming this as a factual count of all the reef owners in the whole world. but just saying, 100,000 here, and that surely includes many who dont have a reef at all, just signed up to see what its about. but if you consider this as a rough estimate with offsetting differences for an american count; thats more like .03% rather than 1%. making it 13 people...
ok, with that said i want to be completely clear that I believe the true number to lie somewhere in the middle; but thats a big middle.
other big problem your looking at this as the store being your only expense.
number 1, and its a big one, is your time. I dont know who you are or what you do, but we can assume your time is worth atleast 30,000 a year. so theres expense number 1. and this store will surely require longer hours and weekends that a typical 30k/year job wouldnt.
banking costs, always have the credit card companies good for a nice 2% off the top.
of course cost of goods sold. I have no clue what the typical margin is on fish.
supplies, we all know fish tanks are expensive. lot of salt. electricity, water, filters, ect.
losses, your dealing with live goods. and they are coming to you stressed, and you'll be expected to gaurentee that they then live through the another stressful move. more costs. a stroll through even the nicest fish store and unless they never clean their tank(I doubt it) they must lose a couple dozen fish every day.
now Ive just laid out a bunch of reasons to not do it. IMO you have all the reasons TO do it already. what you need to do is disprove my reasons with reasonably correct budgeted forecasts. maybe go to a neighbooring town or the next closest fish store, and just sit there and see how many people come in each day.
around here there are a few MAJOR stores, petland(most of its business is in mammals and fw, Id be suprised if the SW breaks even) then theres a hard core SW store that seems to do great. but that is serving basicly all of metro atlanta, a few million people.
ok, with that said i want to be completely clear that I believe the true number to lie somewhere in the middle; but thats a big middle.
other big problem your looking at this as the store being your only expense.
number 1, and its a big one, is your time. I dont know who you are or what you do, but we can assume your time is worth atleast 30,000 a year. so theres expense number 1. and this store will surely require longer hours and weekends that a typical 30k/year job wouldnt.
banking costs, always have the credit card companies good for a nice 2% off the top.
of course cost of goods sold. I have no clue what the typical margin is on fish.
supplies, we all know fish tanks are expensive. lot of salt. electricity, water, filters, ect.
losses, your dealing with live goods. and they are coming to you stressed, and you'll be expected to gaurentee that they then live through the another stressful move. more costs. a stroll through even the nicest fish store and unless they never clean their tank(I doubt it) they must lose a couple dozen fish every day.
now Ive just laid out a bunch of reasons to not do it. IMO you have all the reasons TO do it already. what you need to do is disprove my reasons with reasonably correct budgeted forecasts. maybe go to a neighbooring town or the next closest fish store, and just sit there and see how many people come in each day.
around here there are a few MAJOR stores, petland(most of its business is in mammals and fw, Id be suprised if the SW breaks even) then theres a hard core SW store that seems to do great. but that is serving basicly all of metro atlanta, a few million people.
I don't have the sources to the information I am about to provide but I have read up on this subject as I just like to read things about my hobbies and basically some suggestions that stuck out in mind head as a smart thing to do:
#1 Start at home
This removes rent, heat, water, etc. I know your rent is cheap but still when starting a business money is money. Start by selling frags and frequently purchased fish (dare I say nemo ...) Build a small customer base from local reefers and other reefers in the area. This will also allow you to get #1 a feel for the market #2 some "word of mouth advertising" before going brick and mortar (B&M). When doing this make sure to stay true to your word and above *all* else make your customers happy. Because they will be purchasing from you when you go B&M By starting at home this will provide a way to start slowly and see if this is truly what you want to do. Build/buy a few grow-out tanks and some tanks to store fish. When you go B&M this will be that much less for initial purchase.
#2 Service/Maintenance
Do service/maintenance work on saltwater aquariums. This will provide steady income and can be done in parallel with home and B&M. As someone stated above this requires almost nothing in terms of overhead (other than salt, additives, food, etc) but that will be almost immediately offset by the customers. Plus you could use what you have for your tank already. I know this is not the fun part but by doing this you can get the word out about your B&M store and word of mouth advertising is everything. You could also tank sit while local reefers go on vacation. That will build trust in the local community and hopefully another future customer ;o)
#3 Support local reefers
Like I said these people will be your customer base. If you slide them an extra frag here and hold some of their cuttings temporarily it will only show what a nice guy you are. Go to the local events and make it *well* and I do mean *WELL* known that you will be going B&M and will be happy to service to their needs.
#4 Make a business plan
If you start at home this will allow you to make a better business plan because you will already have a start. Hopefully this will increase your accuracy and improve your chances for success. This is a tedious task but well worth the time and effort.
#5 Document *everything*. Every cost, transaction, profit, customer, etc. If you don't it will be hard to convince the govn't that you don't just want tax cuts on an expensive hobby. I believe many people get screwed on this because the govn't didn't think they were a business.
#6 Lawyer/Accountant
Everyone hates them but businesses need them. They will provide necessary knowledge about local laws and taxes that you must be aware of. What are the zoning laws? Are there any chemical restrictions in that area? How much will taxes cost? the list goes on but all questions must be addressed *disclaimer, some of the questions were very fictional and only used to stress the point*
#7 Time
Find a quiet room where you will not be disturbed for one hour. Set a timer and sit and think to yourself about your business plan and how likely this business will succeed. When the timer goes off ask yourself how much that hour was worth to you?
After you have answered the question multiply that number by 55. That is how much money you will need to make in a week to make this business worth your time. Starting a business requires a *lot* of time. Time away from family, friends, kids, pets ... Is the time *really* worth it?
Like everyone here I don't mean to discourage you but I believe looking at all angles will help you become more successful if you decide to explore this endeavor. I have asked myself that last question many times in my life and ultimately I would like to own my own business, maybe even an fish store, but I won't start my own business until I can answer yes to that question. Although it is *very* dependent on your current job. If you hate your life because of your job and think this would improve quality of life then answer the rest of the questions and go for it! Just remember that its a risk and you might fail. If you're willing to take it and want any more detailed information send me a PM and I will elaborate or try to dig up some links of what I described.
My $0.01 (after taxes ;o)
eshook
#1 Start at home
This removes rent, heat, water, etc. I know your rent is cheap but still when starting a business money is money. Start by selling frags and frequently purchased fish (dare I say nemo ...) Build a small customer base from local reefers and other reefers in the area. This will also allow you to get #1 a feel for the market #2 some "word of mouth advertising" before going brick and mortar (B&M). When doing this make sure to stay true to your word and above *all* else make your customers happy. Because they will be purchasing from you when you go B&M By starting at home this will provide a way to start slowly and see if this is truly what you want to do. Build/buy a few grow-out tanks and some tanks to store fish. When you go B&M this will be that much less for initial purchase.
#2 Service/Maintenance
Do service/maintenance work on saltwater aquariums. This will provide steady income and can be done in parallel with home and B&M. As someone stated above this requires almost nothing in terms of overhead (other than salt, additives, food, etc) but that will be almost immediately offset by the customers. Plus you could use what you have for your tank already. I know this is not the fun part but by doing this you can get the word out about your B&M store and word of mouth advertising is everything. You could also tank sit while local reefers go on vacation. That will build trust in the local community and hopefully another future customer ;o)
#3 Support local reefers
Like I said these people will be your customer base. If you slide them an extra frag here and hold some of their cuttings temporarily it will only show what a nice guy you are. Go to the local events and make it *well* and I do mean *WELL* known that you will be going B&M and will be happy to service to their needs.
#4 Make a business plan
If you start at home this will allow you to make a better business plan because you will already have a start. Hopefully this will increase your accuracy and improve your chances for success. This is a tedious task but well worth the time and effort.
#5 Document *everything*. Every cost, transaction, profit, customer, etc. If you don't it will be hard to convince the govn't that you don't just want tax cuts on an expensive hobby. I believe many people get screwed on this because the govn't didn't think they were a business.
#6 Lawyer/Accountant
Everyone hates them but businesses need them. They will provide necessary knowledge about local laws and taxes that you must be aware of. What are the zoning laws? Are there any chemical restrictions in that area? How much will taxes cost? the list goes on but all questions must be addressed *disclaimer, some of the questions were very fictional and only used to stress the point*
#7 Time
Find a quiet room where you will not be disturbed for one hour. Set a timer and sit and think to yourself about your business plan and how likely this business will succeed. When the timer goes off ask yourself how much that hour was worth to you?
After you have answered the question multiply that number by 55. That is how much money you will need to make in a week to make this business worth your time. Starting a business requires a *lot* of time. Time away from family, friends, kids, pets ... Is the time *really* worth it?
Like everyone here I don't mean to discourage you but I believe looking at all angles will help you become more successful if you decide to explore this endeavor. I have asked myself that last question many times in my life and ultimately I would like to own my own business, maybe even an fish store, but I won't start my own business until I can answer yes to that question. Although it is *very* dependent on your current job. If you hate your life because of your job and think this would improve quality of life then answer the rest of the questions and go for it! Just remember that its a risk and you might fail. If you're willing to take it and want any more detailed information send me a PM and I will elaborate or try to dig up some links of what I described.
My $0.01 (after taxes ;o)
eshook
Opcn
Member
Where are you? I doubt anyone will swoop in and stealthe market, but knowing what area you are looking at and the economic situation would help. Also next quarter promises to be a pain in the neck for starting up a fish shop, the comodities market is up so durrable goods sales are down, it seems that the only people making money are companies like catapiler big business is finally starting to spend a little but the high comodities prices have us in a bind, However if yourlooking at an area that stands to make money with exports things are looking up because a weak US dollar (and you know its weak) will increse exports and more money will pour into those areas, encouraging employees to losen thier belts so to speak and spend a little money on durable goods, like fishtanks.
boxfishpooalot
Active member
With business you should think first of: what do people really need in life that I can make money from?
Answer: food and shelter and warmth.
Now ask yourself: Which business's are most succefull/prominent?
Answer: grocery stores(food), fast food(food), hotels(shelter), real-estate(shelter), clothing copanys(warmth),ect.
Now ask yourself: How can I combine the hobby I love into somthing wich has at least one of those 3 most important things involved, that will make me decent money, with minimall failer?
Answer: Well, for me I plan on having a resturaunt one day with an aquarium surrounding your eating area. As you eat you get to watch the fish swim by you!
Thats how you combine what you love with what makes money!
People always need shelter, food and warmth. If your starving, will you eat your fish?
Answer: food and shelter and warmth.
Now ask yourself: Which business's are most succefull/prominent?
Answer: grocery stores(food), fast food(food), hotels(shelter), real-estate(shelter), clothing copanys(warmth),ect.
Now ask yourself: How can I combine the hobby I love into somthing wich has at least one of those 3 most important things involved, that will make me decent money, with minimall failer?
Answer: Well, for me I plan on having a resturaunt one day with an aquarium surrounding your eating area. As you eat you get to watch the fish swim by you!
Thats how you combine what you love with what makes money!People always need shelter, food and warmth. If your starving, will you eat your fish?
i also agree with nguyen. don't forget about also selling freshwater. If all you keep are saltwater fish, you'll never get the freshwater people into your store so you can convert them. I had been doing freshwater for years, and I always looked at the saltwater fish in the store, dreaming for the day.
Then one day I happened to be in the store to buy some fancy goldfish. I walked out of the store with a bag of salt, live sand, and a saltwater test kit. Couple days later I went back and got some damsels.
Now I'm a reefaholic.:hmm5:
someone please help me.
Then one day I happened to be in the store to buy some fancy goldfish. I walked out of the store with a bag of salt, live sand, and a saltwater test kit. Couple days later I went back and got some damsels.
Now I'm a reefaholic.:hmm5:
someone please help me.
saycheessee
Premium Member
Ok... here's my opinion....
I personally owned a pet shop in the past.... (key word) in the past. I loved it and did make money on it. The area that I am in only has a few pet stores around... so I had that part licked... But the problem you have with Freshwater is that Wally World (no pun intended) is a BIG Competition that you have. They can sell food and equipment lower than what you can buy it for unless you want to buy a large quanity of them. (which you still can't hardly compete with them) 2ndly... Time.... You can either have fish delivered to your door.. at an extra cost... or you can have (if you are lucky to have an airport locally) your fish delivered to the airport and pick it up yourself at a discounted price... BUTTT... then you have the layovers of the livestock delayed or they didn't make the plane or ..... they just didn't get put on the plane they were suppose to and then you are sitting at the airport for 8 hours waiting on fish... then when you get them to the store... you feel like you have to GET THEM OUT right then because they have been in those bags for HOW MANY HOURS?? OMG.. you freak and you end up sleeping in the floor on cots or on blankets trying to wait on them to acclimate and then the next morning (which it is almost by this time) you have to find someone to work because you spent all your time at the store trying to get livestock out and didn't' get hardly any sleep (those floors get hard) THENNNNN You hire someone to work and the cost of having employees eats your profits to no end. Workmen comp, ins, utilities. My opinion.... Try the Ecommerce. You may not have the volume as a storefront but time wise... you can at least sleep, spend time with your family and have a life.
There's a lot to a storefront pet store (I had more than just fish though... I had fish, dogs, reptiles etc) and a lot to dedicate yourself to cause Good Help is hard to find.
Think really hard!
I personally owned a pet shop in the past.... (key word) in the past. I loved it and did make money on it. The area that I am in only has a few pet stores around... so I had that part licked... But the problem you have with Freshwater is that Wally World (no pun intended) is a BIG Competition that you have. They can sell food and equipment lower than what you can buy it for unless you want to buy a large quanity of them. (which you still can't hardly compete with them) 2ndly... Time.... You can either have fish delivered to your door.. at an extra cost... or you can have (if you are lucky to have an airport locally) your fish delivered to the airport and pick it up yourself at a discounted price... BUTTT... then you have the layovers of the livestock delayed or they didn't make the plane or ..... they just didn't get put on the plane they were suppose to and then you are sitting at the airport for 8 hours waiting on fish... then when you get them to the store... you feel like you have to GET THEM OUT right then because they have been in those bags for HOW MANY HOURS?? OMG.. you freak and you end up sleeping in the floor on cots or on blankets trying to wait on them to acclimate and then the next morning (which it is almost by this time) you have to find someone to work because you spent all your time at the store trying to get livestock out and didn't' get hardly any sleep (those floors get hard) THENNNNN You hire someone to work and the cost of having employees eats your profits to no end. Workmen comp, ins, utilities. My opinion.... Try the Ecommerce. You may not have the volume as a storefront but time wise... you can at least sleep, spend time with your family and have a life.
There's a lot to a storefront pet store (I had more than just fish though... I had fish, dogs, reptiles etc) and a lot to dedicate yourself to cause Good Help is hard to find.
Think really hard!
