How to Open a Coffee Shop and Grow It to 19 Locations (2024)
October 20, 2023
Whether you personally love coffee or are curious about capitalizing on the booming coffee and specialty drink market, you’re not wrong for thinking starting a coffee business could be the answer to all life’s problems.
Before opening super-successful Woods Coffee, Wes Herman was traveling all over the U.S. for work, not seeing his family as much as he’d like, and wanting to empower his kids to live better. You’ll never believe how he did it.
We started the company as a homeschool project to teach our four kids how to start a business. We hoped they would love it so much that we could work together for a long time as we grew this new brand.
The family started serving coffee in 2002 when their homeschool project got a $23,000 loan. Since then, Woods Coffee has steadily grown to 19 shops over the Northwest.
Here, Wes shares coffee business secrets like avoiding tying your funds up in real estate and buying used whenever possible. By the end of this article, you’ll know how to start the coffee shop of your dreams with any budget.
We’ll cover the following (click any link to jump to the part that interests you most):
- What is a coffee shop?
- How to open a coffee shop business
- Step 1. Research the coffee shop industry
- Step 2. Create a coffee shop business plan
- Step 3. Create a business structure
- Step 4. Get your business license
- Step 5. Fund your coffee shop startup costs
- Step 6. Choose the right coffee supplier
- Step 7. Plan the coffee shop layout and decor
- Step 8. Buy coffee equipment and furnishings
- Step 9. Hire employees
- Step 10. Create a menu
- Step 11. Start coffee shop marketing
- Step 12. Comply with all regulations
- Step 13. Soft launch your coffee shop
- Step 14. Host a grand opening
- Step 15. Manage your coffee shop business
- Step 16. Provide excellent customer service
- Step 17. Grow your coffee shop business
- Opening a coffee shop FAQ
- Go start a successful coffee shop
If you want to know how to start a coffee shop, keep reading to find out how Wes started his multi-million-dollar coffee empire without spending his own money.
What is a coffee shop?
A coffee shop is a small restaurant, cart, kiosk, or drive-thru that primarily sells coffee, tea, and other refreshments.
Popular styles of coffee include:
- Espresso
- Latte
- Cappuccino
- Cold brew
A coffee shop might also carry small snacks like cookie cakes. A coffee shop owner might also consider opening a café, which tends to have more tables and a full menu of food in addition to coffee.
Keep reading to learn about the coffee industry.
How to open a coffee shop business
Opening a coffee shop can be an exciting and rewarding venture, but it also requires careful planning and execution. You’ll need to perform the following steps to start a coffee shop:
- Research the coffee shop industry
- Create a coffee shop business plan
- Create a business structure
- Get your business licenses
- Fund your coffee shop startup costs
- Choose the right coffee supplier
- Plan the coffee shop layout and decor
- Buy coffee equipment and furnishings
- Hire employees
- Create a menu
- Start coffee shop marketing
- Comply with all regulations
- Soft launch your coffee shop
- Host a grand opening
- Manage your coffee shop business
- Provide excellent customer service
- Improve your coffee shop performance
Get ready to learn how to open a coffee shop.
Step 1. Research the coffee shop industry
The first step to starting a coffee shop brand is to research coffee businesses to understand how to place yourself within the industry. You’ll have two considerations during the market research phase:
- You’ll want to understand coffee industry earning potential and trends on both a national and local level.
- Choose a strategic location with high foot traffic, accessibility, visibility, and proximity to other businesses.
Identify how to make your new coffee shop unique
Opening a coffee shop can be a lucrative business, but a new coffee shop needs to understand the startup costs, earning potential, fixed and variable costs, and marketing strategies of a successful business.
Companies like Starbucks, Dunkin, and Tim Hortons make hundreds of millions, if not billions, of dollars each year.
That’s awesome for them, but an independent coffee shop will take years to reach that point. Here, we help you explore your business opportunities for becoming a successful coffee shop starting from scratch.
Cautionary tale about coffee shops
We use IBIS World for all of our industry reports. They provide multiple reports about coffee shops, and there is some contradictory information.
We used the following coffee shop reports in the Industry Section:
- INDUSTRY REPORT OD6098: This report covers the retail market for coffee in the U.S. It was last updated in April 2021.
- (NAICS) REPORT 72221B: This report covers coffee and snack shops in the U.S. It was last updated in January 2023.
- INDUSTRY REPORT OD5552: This report covers coffee store franchises in the U.S. It was updated in January 2023.
We combined data from multiple reports because Starbucks gets nearly 40% of U.S. coffee and snack shop revenue. In addition, the NAICS report indicated that the industry operates at a loss when you exclude Starbucks.
The chart below is the coffee shop data from OD6098 and NAICS Code 72221B. This gives you a more adequate view of coffee shops by the numbers than including just one report’s information.
| Statistic | Coffee Retail Markets | Coffee & Snack Shops | Combined | Starbucks | Coffee Retail Markets Plus Coffee & Snack Shops Minus Starbucks. | Coffee & Snack Shops Minus Starbucks |
| Revenue | $46,200,000,000.00 | $54,500,000,000.00 | $100,700,000,000.00 | $18,500,200,000.00 | $82,199,800,000.00 | $35,999,800,000.00 |
| Profits | $3,400,000,000.00 | $1,900,000,000.00 | $5,300,000,000.00 | $2,439,200,000.00 | $2,860,800,000.00 | -$539,200,000.00 |
| Profit Margins | 7.36% | 3.49% | 5.26% | 13.18% | 3.48% | -1.50% |
| Number of Locations | 455,929 | 89,867 | 545,796 | 15,991 | 529,805 | 73,876 |
| Number of Businesses | 342,120 | 72,136 | 414,256 | 1 | 414,255 | 72,135 |
| Location Rev | $101,331.57 | $606,451.76 | $184,501.17 | $1,156,913.26 | $155,151.05 | $487,300.34 |
| Business Rev | $135,040.34 | $755,517.36 | $243,086.40 | $18,500,200,000.00 | $198,428.02 | $499,061.48 |
| Loctions per Business | 1.33 | 1.25 | 1.32 | 15991 | 1.28 | 1.02 |
| Rev per Employee | $24,200.00 | $59,100.00 | $35,522.27 | $46,020.40 | $33,787.58 | $69,197.65 |
| Number of Employees | 1,912,595 | 922,246 | 2,834,841 | 402,000 | 2,432,841 | 520,246 |
| Average Number of Employees per Location | 4.19 | 10.26 | 5.19 | 25.14 | 4.59 | 7.042151714 |
| Profit per Employee | $1,780.95 | $2,060.37 | $1,869.59 | $6,067.66 | $1,175.91 | -$1,036.43 |
| Profit per Location | $7,457.30 | $21,142.35 | $9,710.59 | $152,535.80 | $5,399.72 | -$7,298.72 |
| Profit per Business | $9,938.03 | $26,339.14 | $12,794.02 | $2,439,200,000.00 | $6,905.89 | -$7,474.87 |
How much does a coffee shop make?
The average coffee shop location makes between $150K and $600K per year with 4-10 people working at the shop, but the exact amount will depend on the coffee shop concept, foot traffic, and number of employees.
If you’re opening a coffee shop or coffee cart as a solo entrepreneur, know that you might make as little as $24K a year, though.
Pro Tip: Plan ahead from the start. Scaling and acquiring an existing coffee shop is how most of the industry improves revenues and profit margins.
How much does a coffee shop make a month?
Depending on the coffee shop location and other factors, you can expect to make somewhere between $40K and $50K per month, but the average Starbucks location approaches $100K monthly.
These numbers will fluctuate seasonally and based on the number of days in each month.
Independent coffee shops will obviously make less in monthly sales than a Starbucks until they develop a reputation and get repeat customers.
How much does an average coffee shop make a day?
An average coffee shop makes between $410 and $1,650 per day, while the average Starbucks makes nearly $3,200 per day.
Coffee shops tend to have the most business when people go to work, during lunch breaks, and after work. Of course, a great coffee business in a place like an airport or casino might have different high-traffic times.
Get ready to find out if a coffee shop is profitable.
How profitable is a coffee shop?
It’s getting harder to measure profits because business owners have established that the ideal profit amount is zero to minimize their tax consequences. That said, a coffee shop can make up to 50% gross profit and 17% net profit.
Wes shared the following about the profit potential of a coffee shop:
You can operate a small business very efficiently in coffee, and if you get a lot of customers, then you can make some serious dough.
In Wes’s case, that’s definitely true considering he owns a multi-million-dollar coffee shop empire!
How much do coffee shop owners make?
Estimating how much coffee shop owners make requires analyzing various financial reports since a business owner may make money in the following ways:
- Salary: $59,440 as General Manager or Comparable Position
- Tips: 8-20% of revenue
- Dividends: Up to $21,142 paid out above salary
- Benefits: $17,565
- Total: $59,440 to $120,000
You might make much more if you open a coffee shop like Woods Coffee. They have 19 stores and make millions per year. In that scenario, your salary would be comparable to a CEO or Operations Manager, tips would be removed, and dividends would be much higher. Check out our interview with Wes below to learn more:
Find a great location with reasonable rent
Just because a spot is centrally located doesn’t mean it’s the right coffee shop location.
High-traffic locations usually have sky-high rents and cutthroat competition. Meanwhile, a coffee shop starting as a coffee kiosk in a mall will have much lower costs and cover its operating costs quicker.
Pro Tip: Try to see potential in a location that nobody else appreciates. Wes has this to say about his Boulevard Park location, the crown jewel in his entire chain:
As an entrepreneur, you must trust what you see. It will always be different than what others see. There were quite a few businesses that passed on Blvd. Park because they couldn’t see it working. We saw it from day one, never wavered, and built one of the finest coffee shops in the world.
When you do your location analysis, consider the following factors:
- Demographics
- Regulations and zoning
- How close you are to your target market
- How far away suppliers are
- Competition
- Crime rates
Pro Tip: Learn more about picking locations.
Step 2. Create a coffee shop business plan
Virtually every entrepreneur will tell you to write a business plan when opening a coffee shop.
Wes is no different. However, his coffee shop business plan was only one page long:
I always like to think that a business plan can be put on one sheet of paper. It’s the difference between just driving aimlessly without a map versus having a map and understanding where you’re going. You’ll get there faster, you’ll get there more directly, and you won’t be distracted trying to figure out where you’re supposed to be going.
The beauty of the one-page coffee shop business plan is that it pares down your idea to its barest essentials. This helps you to focus on your vision with laser-sharp intensity. It makes opening a coffee shop so much easier.
You’ll want to include the following:
- Your Elevator Pitch: Why you are opening a coffee shop and why investors should care
- SWOT Analysis: An analysis of your coffee shop’s strengths, weaknesses, opportunities, and threats
- Business Model: How your coffee shop will make money while increasing revenue and profit—the more disruptive to the industry, the higher the likelihood that your coffee shop succeeds
- Unique Value Proposition: What makes you different from other coffee shops?
- Target Demographic: Proof that you’ve performed market research
- Budget: Financial analysis to help you manage coffee shop startup costs and ongoing expenses
- Pricing Strategy: How will you approach pricing your coffee shop menu?
- Marketing: A list of strategies you’ll use to market and become a successful coffee shop
- Funding Plans: Statement of how much funding you’ll need, how you’ll get it, and how you’ll use it
Pro Tip: You can create supplemental materials such as income and cash flow statements for potential investors but save them separately.
Step 3. Create a business structure
A business structure is just how your business is treated from a legal standpoint. It can be considered a separate entity, like a limited liability company (LLC) or corporation. Alternatively, sole proprietors and partners’ personal and business interests remain legally connected.
Most business owners opt for an LLC through their Secretary of State website because it’s less costly than a corporation and limits their losses to the startup costs should the business fail. Your coffee business will also need an employee identification number (EIN) to file taxes.
Pro Tip: Learn more about the different types of businesses.
Step 4. Get your business license
Complete all necessary paperwork to register your business with the appropriate local and state authorities. This will normally include:
- A tax permit
- Local business license
- Fire inspection
- Health inspection
- Food serving license
- Liquor or beer license (if you plan to serve alcohol)
Check with your city and state to establish exactly what you need.
Step 5. Fund your coffee shop startup costs
How to start a coffee shop with no money
Wes started Woods Coffee using none of his own money. Here’s how he made it happen:
In those early days…we were on a very, very, tight budget. We didn’t have the money, and so we needed to find the money, and we needed to be creative on how we launched the first store. So, the initial budget was $23,000—that’s what we needed to pull this business off. We didn’t have the dough, so we went out and asked someone to partner with us that had the money. They weren’t coffee drinkers, but they decided that this would be a good investment, and it was.
That’s an excellent way to start a coffee shop with no money down! Of course, if you have savings or other sources of funding to work with, even better.
Cost of opening a coffee shop
Wes thinks it would cost $500,000 to start a coffee shop today.
In our interview with Joe’s Fine Coffee, Joe mentions that he was able to start his coffee shop for just $100,000. You can find that interview here:
Our research shows that it costs about $275,000 to open a coffee shop. However, this will vary based on your location, business needs, and several other factors.
To determine your budget, you need to figure out what it’ll cost to get your venture off the ground and calculate your ongoing costs. This will consist of the following three types of expenses:
- Capital
- Fixed
- Variable
Capital costs are things you only buy once (unless there is something from your equipment list that breaks down). These are things like:
- Espresso machines
- Cash registers
- Ice makers
- Building (if you buy instead of rent)
Fixed costs are expenditures that stay the same from month to month. An example of this is rent.
Variable costs are expenses that fluctuate depending on how much business you do. These are things like labor costs because the more customers you have, the more employees you’ll need to hire.
Don’t forget ongoing costs
High startup costs mean that you’re going to need plenty of startup capital to get your business off the ground. Here’s what Wes has to say about that:
Most entrepreneurs forget about working capital and the need for a reserve to get you through the beginning stages of when you start your business… In most people’s cases, they have to reserve enough money to get them through the first year to pay themselves.
Set aside enough money to cover your expenses for six months (if not longer). An excellent strategy to minimize how much money you’ll need is only securing enough cash to take you to the next stage of your business.
This is known as “the lean startup” and will dramatically increase your chances of success.
Run your coffee shop as a side hustle
You can save money by holding down another job so you don’t have to siphon funds from your fledgling business (that’s what Wes did):
I worked for a good five years in another job so I wasn’t a drag on the company and I was able to keep the money flowing into the company and able to make the company successful before I started drawing salary. So, we actually got to store number six before I ever started earning money out of the company. And I worked another job during the day, and then at night I’d make all the deals, and put these things together, and before you know it, we have six stores.
How are you going to fund your venture?
With all this in mind, consider how you’ll fund your coffee shop. Your plan can include personal savings, loans, investors, or a combination of these.
Are you going to take a crack at crowdfunding or find a friend willing to invest in your idea like Wes did? Or, perhaps you have relatives who can loan you some startup dough?
You can always seek out venture capital or try to get a bank loan. Whatever funding source you turn to, you’re going to need enough moolah to get through the inevitable lean times.
Pro Tip: If you think you need loans or investors, check out our blog on how to get a business loan.
Step 6. Choose the right coffee supplier
Serving up a superior coffee experience is undoubtedly the most crucial aspect of your business. That’s why you’ll need to find an excellent source for your coffee beans, milk, syrups, equipment, and other necessary supplies.
In the beginning, it’s probably best that you outsource the roasting of your beans.
When trying to find a supplier, look for:
- Superior product
- Price point that’ll allow you to maximize your profits
- Exceptional assortment
Here’s what Wes advises:
How we control the roasting process is really important because we want to know that the process is done correctly, that it’s fresh, and that it’s done in the way we want it to be done. So that’s why we roast our own coffee. We didn’t originally—that was a process that we had outsourced in the beginning years—but eventually, we were able to bring it in house and roast all of our own coffee, and that’s been a huge advantage for us.You certainly can hire somebody to roast your coffee for you. In our case, we wanted ultimate control over the process, the quality, and the consistency. And we can do that with our own coffee beans coming from specific countries.
As your profits grow, you might want to start thinking about roasting in your shop so that you have a unique product to offer your clientele.
Step 7. Plan the coffee shop layout and decor
Plan the layout of your coffee shop for both functionality and aesthetics. Consider factors like seating arrangements, counter space, and decoration. Check out some of these designs for inspiration.
Pro Tip: Want to get started with a coffee truck or cart? Get all the info you need from our Food Truck Ultimate Buying Guide.
Step 8. Buy coffee equipment and furnishings
Purchase essential coffee shop equipment like an espresso machine, grinders, brewing equipment, refrigerators, and furniture. Make sure they meet industry standards and regulations.
Wes says:
Check out part one of our interview with Wes below. Try to get high-quality equipment, even if it’s not new. If you get the cheap stuff, you’ll only end up regretting it later on. Here’s the list of equipment you’ll need to make your small coffee shop a resounding success: As your business grows and your services expand, you might need other coffee shop equipment like coffee roasters. One of the biggest lures of a gourmet coffee shop is the atmosphere. Create a relaxing physical space with the right décor, and make sure your café has lots of comfy seating, too. Hire baristas, kitchen staff, and any other necessary employees. Ensure they are trained in coffee preparation, customer service, and health and safety protocols. Stellar customer service is crucial when you own a coffee shop, so be selective when hiring new staff. Although your baristas must know how to make beverages correctly, they should also know a little about the coffee itself. These are things like the flavor profiles of each specialty coffee and where the beans come from. During training, you might want to teach employees about latte art, quality beans, and how to encourage customers to keep coming back. This is need-to-know information for coffee connoisseurs, so your baristas must be armed with this knowledge. Pro Tip: Learn more about hiring before you open your own café or coffee shop. Create a menu that includes a variety of coffee beverages, tea options, snacks, and possibly light meals. Consider catering to different dietary preferences and restrictions. When you open your coffee shop, you need to consistently serve the best coffee and snacks. If you succeed in doing this, you’ll have customers flocking to you. When it comes to creating your menu, keep in mind that you’re not reinventing the wheel—you’re taking the best food and drinks offered by the top coffee shops and finding ways to make them better. There’s no way a coffee shop can remain economically viable on coffee sales alone. That’s why you need to offer bakery items. Having a delicious assortment of quality baked goods near the cash register will tempt the customer to buy. Try to come up with at least a few menu items that’ll dazzle customers with their originality. Here’s what Wes has to say on this subject: Check out part two of our interview with Wes below. Create a strong brand identity, including a memorable logo and a cohesive visual theme. Develop a marketing plan that includes an online presence (website, social media), promotions, and possibly partnerships with local businesses. You want to whip customers into a buying frenzy even before you open your doors. One way to do that is a direct mail or email campaign sending out coupons for free coffee. Do a little research to find out what sort of marketing would be best for your coffee shop. Here’s what Wes has to say about that: When he first started out almost 20 years ago, his only marketing was opening up new coffee shops! Which, of course, is an atypical way to market yourself. Today, with the advent of social media, Woods Coffee has changed its marketing tactics: Obtain all necessary permits and licenses to operate a food and beverage business in your area. This may include health department permits, business licenses, and signage permits. There are permits and licenses you’re going to need before you can start serving customers. This is a long and drawn-out process, so make sure you start early. Here’s what you might need: Conduct a soft opening to test your operations, gather feedback, and make any necessary adjustments before the official opening. These are normally days when family and friends are invited to try the menu. This will give your coffee business a chance to work with the POS system and inventory management system. Plan a grand opening event to generate excitement and attract customers to your coffee shop. Contact the local news or a PR firm to help you get the news out. Run paid ads with a promo. Pro Tip: At the grand opening, encourage reviews by using a QR code to send customers directly to your shop’s review page. You’ll need to establish efficient operating procedures for ordering supplies, scheduling employees, managing inventory, handling finances, and maintaining equipment. There are restaurant management systems that combine many of these into one system, or you can choose systems that work best for each process. Pro Tip: Learn more about restaurant management systems. Focus on providing excellent customer service, quality products, and a comfortable atmosphere to encourage repeat business and positive word-of-mouth. Your customer service at a coffee shop is heavily impacted by a few things, including: Although opening multiple stores was always a part of the Woods Coffee business plan, it happened much sooner than Wes thought it would. That’s because the opportunity to open a second coffee shop fell into their laps in the form of a perfect location they couldn’t let pass by. They seized this opportunity and opened their second store. It was also a way to show the world they were aggressive, growing, and owned their market. Put a second store in a 6,000-resident town, and you’re going to get a lot of attention. The bold move drove sales in both stores, and they both grew dramatically! You can do the same thing—just make sure you open your second spot in a carefully planned way. Wes told us having multiple business locations isn’t always the best approach: Donut shop coffee is typically an Arabica bean that pairs well with donuts. These can be anywhere from a light to dark roast, but they will normally be slightly sweeter than other coffee and work well with cream or milk. A coffee shop bar is a section in a coffee shop where customers can order and enjoy alcoholic beverages in addition to coffee and other non-alcoholic drinks. A café is similar to a coffee shop but will normally serve slightly more elaborate food than a coffee shop (without having either the size or the selections of a full restaurant). If you do the proper market research, write and follow a solid business plan, and focus on continuous improvement, you should find success when you open a coffee shop. Wes was able to open a coffee shop and grow it to 19 locations. That means you can, too! What’s the signature drink you’ll use to build your multi-million-dollar coffee empire?It’s really critical to have the right machines.
Step 9. Hire employees
Step 10. Create a menu
It’s how you can make something creatively different in this space that attracts people and maybe attracts a different market segment than you’re normally pulling.Step 11. Start coffee shop marketing
We actually don’t spend a lot of money [on] marketing. It’s changed over time. So when we first started, we were looking at what are other people doing, how are they marketing themselves, and we realized we didn’t need to do a lot of marketing, we didn’t need to put advertisements in newspaper(s), that was a thing, back 18 years ago… there was no Facebook, there was no website you could put up, and people would understand what you’re doing. So, we actually realized that the best form of advertising for us was putting multiple locations within a certain geographic territory.[Now], social media is big for us. We’re pretty dominant in our space in this area on social media, and that’s been a lot of fun. It’s a great vehicle for us to show some of our creativity and how people understand who we are and what we offer.Step 12. Comply with all regulations
Step 13. Soft launch your coffee shop
Step 14. Host a grand opening
Step 15. Manage your coffee shop business
Step 16. Provide excellent customer service
Step 17. Grow your coffee shop business
It has to be part of your business plan. If you follow your business plan and have it laid out exactly what you wanna do, then follow it. You can’t just change midstream. Some businesses are much more successful with just one location. In our case, it just happens to be part of our growth plan and part of our experience that we have multiple locations, and it was part of that original plan that we’re executing today. But the idea of ‘How do you scale? How do you grow?’—it’s really important. We don’t put a lot of money into real estate and buying things. We’d really like to keep our capital fluid and moving. And if we can open more stores, we feel that’s better for us.Opening a coffee shop FAQ
What is donut shop coffee?
What is a coffee shop bar?
What is a café?
Go start a successful coffee shop
Author
Brandon Boushy
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More people are thinking about starting a business than ever before. In fact, nearly 5.4 million businesses were started in 2021, so how much does it cost to start a business?
The answer is different for every business, but many small business owners spend less than $5,000 on startup costs. We’ve talked to a ton of small business owners about how to start a business and we’re going to share what we’ve learned from them.
We’ll break down the business startup costs into upfront costs, one-time costs, and recurring expenses for each type of business. Let’s look at how we classified each type of cost.
Fixed costs are business costs that do not change as sales increase. The following items are common startup costs that are fixed costs:
There are business costs that vary based on the volume the business does. These startup costs are called variable costs. Common startup costs in this category include:
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Online businesses are normally some of the lowest in cost to start. You can start most of them for under $1,000 without any educational expenses.They require a computer, internet, business licensing, and some software. Businesses in this category might include:
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Check out our interview with the owner of Urbanity to learn more:
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Check out our most recent YouTube video with a small business owner who started Plan-It Vision with only $300:
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Subtract $20,000 from any of these numbers if you have already gone to school. I included legal fees and insurance costs in the low cost startup funding because you don’t want your new business to be slapped with a major fine for operating illegally.
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Check out our interview with Christopher Mondragon below or sign up for our cleaning business course that covers pricing, business credit, Chris’s marketing scripts, and automation templates:
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Check out our video below to find out how Saied Samaiel makes more than $600K per year with his food truck:
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Check out our interview with Casey about how he created and dropships Shed Defender:
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Check out our interview below:
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Check out our interview with a towing company business owner to learn more:
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Check out our interview with Mikael Sant. He averages $75K a month running Sant Lines LLC:
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Check out our interview with Justin Pike of Ferndale Laundry:
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Check out our interview with a couple that started their own photography company:
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Check out our interview with Caleb to find out how he makes $125K per truck:
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Typical business startup costs
We’ve broken down the startup costs into fixed costs and variable costs. We’ll discuss each below.Fixed Costs
Fixed costs are business costs that do not change as sales increase. The following items are common startup costs that are fixed costs:
- Office Space (Recurring): This includes both rent and utilities. Most small business owners start with home office space and deduct the percentage of space from their taxes as a small business cost.
- Legal Fees (Upfront): These are recurring costs that you have to pay to run a business legally, which usually include business formation, business licensing, and other professional fees to comply with regulations.
- Software Costs (Upfront and Ongoing): These business startup costs include payment processors, websites, CRM, accounting software, and more. You can find some that would be one-time costs, but most are recurring charges.
- Equipment Costs (Upfront): This includes machinery, vehicles, and other costs to meet the mission critical aspects of the business.
- Insurance Costs (Upfront and Ongoing): If your business requires insurance, make sure to keep it continuous. If it doesn’t, you may want to consider it anyway.
Variable Costs
There are business costs that vary based on the volume the business does. These startup costs are called variable costs. Common startup costs in this category include:
- Shipping Costs (Variable Expense): Shipping costs are included in variable costs because you only pay for them if you order materials or ship products to a customer.
- Marketing Costs (Ongoing Costs): The Small Business Administration suggests spending approximately 8% of desired revenue on marketing. The advertising costs seem to be one of the defining factors as to whether a business succeeds long term.
- Material Costs (Varies): The time and materials that go into offering a product or service will affect your revenue.
- Supplies and Packaging Costs: Items you use for running the business must be considered early in the game. This startup cost may include computers, cleaning supplies, business cards, packaging for products, and other items that help your business.
- Wages: Most wages will vary with the amount of business you have. You have to pay employees for their time regardless, but you’ll schedule less hours when you have less business.
- Unexpected Costs: You should always leave a little wiggle room for unforeseen events. I’d suggest at least a 10% slush fund for unexpected startup costs and operating costs.
- Other Costs: This is a catch all for spending you can forecast, but are not sure which cost categories to include them in.
How much does it cost to start a business?
I broke down the average costs of starting a business into four different classifications: [su_note note_color="#dbeafc"]- Low Cost: start a business with a shoestring budget and figure out the ongoing expenses along the way.
- Average Cost: start a business with the money to cover the first year of organizational expenses.
- High Cost: business owners interested in the startup costs to guarantee they stay in business for five years.
- Franchise: business owners who want to buy a franchise.
| Low (Just Startup) | Average (Home-Based for 1 Year of Expenses) | High (Store Location with 5 Years Expenses) | Franchise | |
|---|---|---|---|---|
| Office | $0.00 | $1,800.00 | $30,000.00 | $21,600.00 |
| Legal Fee | $500.00 | $2,000.00 | $10,000.00 | $3,500.00 |
| Software | $200.00 | $1,000.00 | $135,000.00 | $1,000.00 |
| Equipment | $300.00 | $3,000.00 | $125,000.00 | $4,800.00 |
| Insurance | $0.00 | $1,200.00 | $25,000.00 | $5,400.00 |
| Shipping | $2.99/item | $6.99/item | $500/item | $6.99/item |
| Marketing | $0.00 | $24,000.00 | $1,440,000.00 | $24,000.00 |
| Material | $0.00 | $10,000.00 | $50,000.00 | $10,000.00 |
| Supplies | $300.00 | $2,000.00 | $10,000.00 | $1,500.00 |
| Wages | $0.00 | $0.00 | $200,000.00 | $0.00 |
| Unexpected | $300.00 | $1,000.00 | $5,000.00 | $1,000.00 |
| Other | $0.00 | $2,000.00 | $10,000.00 | $89,950.00 |
| Total | $1,600.00 | $48,000.00 | $2,040,000.00 | $162,750.00 |
How much does it cost to start a small business?
According to the Small Business Administration, one out of every four businesses start with less than $5,000, and over half of small businesses have startup costs of under $25,000. But the median is just over $24,000, and the weighted average would be between $72,000 and $276,000. [su_table responsive="yes" alternate="no" fixed="yes"]| Small Business Start Up Cost Analysis | ||||||
| Low | High | Midpoint | Percent | Low Weighted Average | Midpoint Weighted Average | High Weighted Average |
| $0.00 | $4,999.00 | $2,499.50 | 24.10% | $0.00 | $602.38 | $1,204.76 |
| $5,000.00 | $9,999.00 | $7,499.50 | 11.70% | $585.00 | $877.44 | $1,169.88 |
| $10,000.00 | $24,999.00 | $17,499.50 | 15.10% | $1,510.00 | $2,642.42 | $3,774.85 |
| $25,000.00 | $49,999.00 | $37,499.50 | 12.00% | $3,000.00 | $4,499.94 | $5,999.88 |
| $50,000.00 | $99,999.00 | $74,999.50 | 12.80% | $6,400.00 | $9,599.94 | $12,799.87 |
| $100,000.00 | $249,999.00 | $174,999.50 | 12.80% | $12,800.00 | $22,399.94 | $31,999.87 |
| $250,000.00 | $999,999.00 | $624,999.50 | 8.90% | $22,250.00 | $55,624.96 | $88,999.91 |
| $1,000,000 | $5,000,000.00 | $1,000,000.00 | 2.60% | $26,000 | $26,000.00 | $130,000.00 |
| Source: ABS | Total | $72,545.00 | $122,247.01 | $275,949.03 | ||
How much does it cost to start an online business?
Online businesses are normally some of the lowest in cost to start. You can start most of them for under $1,000 without any educational expenses.They require a computer, internet, business licensing, and some software. Businesses in this category might include:
- E-commerce stores
- Graphic design
- Blogging
- YouTube content creators
- Virtual assistants
- Marketing agencies
- Software developers
- And more
How much does it cost to start a t-shirt business?
T-shirt companies are fairly easy to start. For example, you can start with a $30 Shopify, some design software, and a print-on-demand provider. If you really want to make money on it, you have to get good at SEO and marketing, which will increase your costs. [su_table responsive="yes" alternate="no" fixed="yes"]| T-Shirt Business Startup for Revenue of $350,000 per Year | |||
| Low (Just Startup) | Average (1 Year Cost) | High (5 Years) | |
| Office (Homebased) | $0.00 | $0.00 | $0.00 |
| Legal Fee | $0.00 | $1,000.00 | $5,000.00 |
| Software | $50.00 | $6,000.00 | $30,000.00 |
| Equipment (Print-on-Demand (POD) + Dropshipping) | $0.00 | $0.00 | $0.00 |
| Insurance (Optional) | $0.00 | $1,000 | $5,000.00 |
| Shipping | $5.99/item | $59,900.00 | $299,500.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $20.00 | $200,000.00 | $1,000,000.00 |
| Supplies (Optional) | $0.00 | $0.00 | $0.00 |
| Wages (POD built into material costs) | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $1,000.00 | $5,000.00 |
| Other | $0.00 | $1,000.00 | $5,000.00 |
| Total | $70.00 | $292,900.00 | $1,464,500.00 |
| Content | Throwback NW | Urbanity | Big Frog |
How much does it cost to start a landscaping business?
We’ve interviewed multiple business owners who have started landscaping companies. It’s one of the easiest types of businesses to start. You can even start a business for as little as $300. The table below shows the breakdown of the business expenses a small business owner should expect when starting a landscaping business. [su_table responsive="yes" alternate="no" fixed="yes"]| Landscaping Startup Costs | ||||
| Low (Just Startup) | Average (Home-Based for 1 Year of Expenses) | High (Store Location with 5 Years Expenses) | Franchise | |
| Office Space | $0.00 | $1,800.00 | $9,000.00 | $0.00 |
| Legal Fee | $0.00 | $2,000.00 | $10,000.00 | $3,500.00 |
| Software | $0.00 | $1,000.00 | $5,000.00 | $1,000.00 |
| Equipment | $300.00 | $25,400.00 | $127,000.00 | $4,800.00 |
| Insurance | $0.00 | $1,800.00 | $9,000.00 | $5,400.00 |
| Shipping | $0.00 | $0.00 | ||
| Marketing Costs | $0.00 | $24,000.00 | $120,000.00 | $24,000.00 |
| Material | $0.00 | $10,000.00 | $50,000.00 | $10,000.00 |
| Supplies | $0.00 | $4,000.00 | $20,000.00 | $1,500.00 |
| Wages | $0.00 | $60,000.00 | $300,000.00 | $0.00 |
| Unexpected | $0.00 | $1,000.00 | $5,000.00 | $1,000.00 |
| Other | $0.00 | $15,000.00 | $75,000.00 | $15,000.00 |
| Total | $300.00 | $146,000.00 | $730,000.00 | $66,200.00 |
| YouTube Video | Plan-It Vision | Augusta Lawn Care Franchise | Augusta Lawn Care | |
How much does it cost to start an eyelash business?
An eyelash business is one of the most commonly searched small businesses. To get started, you may need to go to cosmetology school. Many states require school, but some do not. If you haven’t already gone to cosmetology school, starting a small business will cost more than $20,000. Most eyelash small businesses run as a combination of brick and mortar business and traveling to their client’s location. We’ve provided you with estimates of how much to expect startup expenses to cost based on the assumption you haven’t already gone to cosmetology school. [su_table responsive="yes" alternate="no" fixed="yes"]| Eyelash Business Startup Costs | ||||
| Low (Just Startup) | Average (Home-Based for 1 Year of Expenses) | High (Store Location with 5 Years Expenses) | Franchise | |
| Office | $0.00 | $7,800.00 | $39,000.00 | $100,000.00 |
| Legal Fee | $2,000.00 | $2,000.00 | $10,000.00 | $3,500.00 |
| Software | $0.00 | $1,000.00 | $5,000.00 | $1,000.00 |
| Equipment | $300.00 | $300.00 | $1,500.00 | $300.00 |
| Insurance | $1,200.00 | $1,200.00 | $6,000.00 | $1,200.00 |
| Shipping | $0.00 | $0.00 | $0.00 | |
| Marketing | $0.00 | $24,000.00 | $120,000.00 | $24,000.00 |
| Material | $50.00 | $8,000.00 | $40,000.00 | $8,000.00 |
| Supplies | $0.00 | $4,000.00 | $20,000.00 | $4,000.00 |
| Wages (assuming no employees) | $0.00 | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $0.00 | $0.00 | $0.00 |
| Other | $20,000.00 | $30,000.00 | $70,000.00 | $55,000.00 |
| Total | $23,550.00 | $78,300.00 | $311,500.00 | $197,000.00 |
| Schools and Franchise Opportunity | Cosmetology School | Lash Bar Franchise | ||
How much does it cost to start a cleaning business?
Cleaning businesses are great for startups. You can even start your own business for as low as $300 if you just buy the cleaning supplies. Almost all the costs are variable expenses. However, you should get the business license and the insurance as soon as possible if you decide to get them after you get started. The ultra low cost way assumes you rent any equipment after booking a job that needs equipment. [su_table responsive="yes" alternate="no" fixed="yes"]| Cleaning Business Startup Costs | |||
| Low (Just Startup) | Average (Home-Based for 1 Year of Expenses) | High (Chris Now) | |
| Office | $0.00 | $3,000.00 | $9,000.00 |
| Legal Fee | $0.00 | $2,000.00 | $13,200.00 |
| Software | $0.00 | $2,400.00 | $12,000.00 |
| Equipment | $0.00 | $4,000.00 | $20,000.00 |
| Insurance | $0.00 | $1,200.00 | $112,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $700.00 | $24,000.00 | $50,550.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $300.00 | $15,600.00 | $56,544.00 |
| Wages | $0.00 | $0.00 | $565,448.00 |
| Unexpected | $0.00 | $10,000.00 | $10,000.00 |
| Other | $0.00 | $0.00 | $132,000.00 |
| Total | $1,000.00 | $62,200.00 | $980,742.00 |
| YouTube Videos | Spruce Clean | South Sound Janitorial | Queen Bee Cleaning Service |
How much does it cost to start a jewelry business?
Many people enjoy doing arts and crafts like making jewelry. You can start a business out of this fun hobby for less than $100 and build your business as you grow. Premade findings are typically more economical, but creativity is often the joy of this type of business owner, so you might want to make your own pieces. If you are trying to make gold and silver jewelry, you can expect the cost to be much higher. A troy ounce of gold varies based on market conditions, but has been between $1,000 and $2,000 over the last 15 years. It will only make about five to 16 rings, and you still have to have the tools to melt it.How much does it cost to start a storage unit business?
The answer to this isn’t particularly clear cut. If you are wanting to buy storage units that are selling people’s stuff to recoup the costs, you should plan to bring at least $500 to the auction. Then, hope you find a gem and recoup your investment. If you are talking about building storage units and renting them out, you’ll need to:- Buy land (acres range from $1,600 to millions, with an average of $12K over the continental U.S.
- Build storage space for $25 to $45 per square foot.
- Run the property for $2 to $4 per square foot of operating expenses.
How much does it cost to start a food truck business?
You might be able to start a food truck for as low as $10K, but I’d expect to spend more like $20K to get started. You’ll probably need around $156K to make it through the first year and around $670,000 to make it through the first five years. If you figure out a winning recipe, it can lead to a million dollar business, though. [su_table responsive="yes" alternate="no" fixed="yes"]| Food Truck Business Startup Costs | |||
| Low (Just Get Started) | Average (Full Year Costs) | High (5 Years) | |
| Space | $0.00 | $0.00 | $0.00 |
| Legal Fee | $2,000.00 | $6,000.00 | $30,000.00 |
| Software | $0.00 | $2,400.00 | $12,000.00 |
| Equipment | $8,700.00 | $27,200.00 | $27,200.00 |
| Insurance | $2,000.00 | $24,000.00 | $120,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $3,000.00 | $36,000.00 | $180,000.00 |
| Material | $1,000.00 | $12,000.00 | $60,000.00 |
| Supplies | $2,000.00 | $24,000.00 | $120,000.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $0.00 | $0.00 |
| Other | $2,000.00 | $24,000.00 | $120,000.00 |
| Total | $20,700.00 | $155,600.00 | $669,200.00 |
| Content | Food Truck Blog | Vet Chef | Abyla Grill |
How much does it cost to start a dropshipping business?
The cost of starting a dropshipping business can vary dramatically because you may have to design a product and purchase inventory. If you are using print-on-demand with dropshipping, it is often fairly cheap. Expect to spend at least $80 getting started, but if you are sourcing materials and manufacturing, it could be more than $30,000 to make your products. Through the course of a year, you might spend up to $180,000. [su_table responsive="yes" alternate="no" fixed="yes"]| Dropshipping Business Startup Costs | |||
| Low (Just Startup for Print-on-Demand) | Average (Design a custom product, manufacture it, and sell for a year.) | High (5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $0.00 | $2,000.00 | $10,000.00 |
| Software | $50.00 | $2,400.00 | $12,000.00 |
| Equipment | $0.00 | $0.00 | $0.00 |
| Insurance | $0.00 | $1,200.00 | $6,000.00 |
| Shipping | $5.99 | $6,000.00 | $30,000.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $20.00 | $140,000.00 | $700,000.00 |
| Supplies | $0.00 | $0.00 | $0.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $1,000.00 | $5,000.00 |
| Other | $0.00 | $1,000.00 | $5,000.00 |
| Total | $75.99 | $177,600.00 | $888,000.00 |
| Content | Shed Defender Blog | Shed Defender YouTube | Beard Head |
How much does it cost to start a candle business?
You can start a candle business for less than $200. The materials and a Shopify account are all you need to get started. The numbers below are from our interview with Jazmin who started the company in 2020 and is making more than $150K per year. [su_table responsive="yes" alternate="no" fixed="yes"]| Candle Business Startup Costs | |||
| Low (Just Startup) | Average (Home-Based for 1 Year of Expenses) | High (5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $0.00 | $2,000.00 | $10,000.00 |
| Software | $30.00 | $1,000.00 | $5,000.00 |
| Equipment | $0.00 | ||
| Insurance | $0.00 | $1,200.00 | $6,000.00 |
| Shipping | $0.00 | $24,000.00 | $120,000.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $10,000.00 | $50,000.00 | |
| Supplies | $80.00 | $0.00 | $0.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $6,000.00 | $30,000.00 |
| Other | $0.00 | $0.00 | |
| Total | $110.00 | $68,200.00 | $341,000.00 |
| Content | BLK Sunflower Blog | BLK Sunflower YouTube | BLK Sunflower |
How much does it cost to start a towing business?
A towing business can be started for under $10,000. It has special licensing requirements that raise the cost and most people don’t own a tow truck. You can typically make around $100,000 per truck––if you do it right. [su_table responsive="yes" alternate="no" fixed="yes"]| Towing Business Startup Costs | |||
| Low (Just Startup) | Average (3 Trucks) | High (5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $2,000.00 | $3,500.00 | $17,500.00 |
| Software | $300.00 | $3,600.00 | $18,000.00 |
| Equipment | $6,000.00 | $25,000.00 | $125,000.00 |
| Insurance | $1,000.00 | $12,000.00 | $60,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $0.00 | $0.00 | $0.00 |
| Wages | $0.00 | $109,500.00 | $547,500.00 |
| Unexpected | $0.00 | $6,000.00 | $30,000.00 |
| Other | $100.00 | $10,000.00 | $50,000.00 |
| Total | $9,400.00 | $193,600.00 | $968,000.00 |
| Content | K.O. Towing Blog | K.O. Towing YouTube | Sant Lines LLC Podcast |
How much does it cost to start a painting business?
You should expect to spend $5,000+ to start a painting business because you’ll need a contractor’s license in most states to start a painting business. Contractors’ licenses have financial requirements that make them more expensive. States may require:- Background checks
- Surety bonds
- Multiple years of experience
- Licensing exams
| Painting Business Startup Costs | |||
| Low (Just Startup) | Average (1 Year Cost) | High (5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $4,000.00 | $4,000.00 | $20,000.00 |
| Software | $100.00 | $6,000.00 | $30,000.00 |
| Equipment | $300.00 | $5,000.00 | $25,000.00 |
| Insurance | $1,000.00 | $2,000.00 | $10,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $100.00 | $10,000.00 | $50,000.00 |
| Supplies | $100.00 | $500.00 | $2,500.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $1,000.00 | $5,000.00 |
| Other | $0.00 | $0.00 | $0.00 |
| Total | $5,600.00 | $52,500.00 | $262,500.00 |
How much does it cost to start a detailing business?
You can start a mobile detailing business for as little as $300, but you should probably expect the annual costs to approach $53K to really grow. That includes licensing, insurance, a vehicle, upgrading your website, and spending $2K per month on marketing. Check out the breakdown below: [su_table responsive="yes" alternate="no" fixed="yes"]| Detailing Business Startup Costs | |||
| Low (Mobile with Car to Get Started) | Average (Mobile, Vehicle Purchase and 1 Year Expenses) | High (5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $0.00 | $1,200.00 | $6,000.00 |
| Software | $0.00 | $5,000.00 | $25,000.00 |
| Equipment | $200.00 | $6,000.00 | $30,000.00 |
| Insurance | $0.00 | $1,200.00 | $6,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $100.00 | $0.00 | $0.00 |
| Supplies | $0.00 | $5,000.00 | $25,000.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $1,000.00 | $5,000.00 |
| Other | $0.00 | $10,000.00 | $50,000.00 |
| Total | $300.00 | $53,400.00 | $267,000.00 |
| Content | Attention 2 Detail Blog | Attention 2 Detail YouTube | Slide In Mobile Detailing |
How much does it cost to start a trucking business?
Trucking businesses will normally cost around $10,000 to start in-state or $20,000 for interstate operations, but you can expect to spend $100K to $250K per year to run a trucking business. Make sure the truck you buy is less than 10 years old because most companies require a newer vehicle when hiring you to haul their products. [su_table responsive="yes" alternate="no" fixed="yes"]| Trucking Business Startup Costs, Making $10K per Week | |||
| Low (Just Startup) | Average (1 Truck, 1 Year) | High (1 Truck, 5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $3,000.00 | $3,500.00 | $17,500.00 |
| Software | $300.00 | $3,600.00 | $18,000.00 |
| Equipment | $6,000.00 | $41,500.00 | $41,500.00 |
| Insurance | $4,500.00 | $20,000.00 | $100,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $0.00 | $0.00 | $0.00 |
| Wages | $0.00 | $0.00 | |
| Unexpected | $0.00 | $6,000.00 | $30,000.00 |
| Other | $5,000.00 | $250,000.00 | $1,250,000.00 |
| Total | $18,800.00 | $348,600.00 | $1,577,000.00 |
| Content | Attention 2 Detail | K.O. Towing YouTube | Sant Lines LLC podcast |
How much does it cost to start a taxi business?
Taxis are a dying business in most places. The business structure is antiquated. You have to register with your city’s transit authority, hire dispatch, and buy a bunch of taxis. We’ve provided an estimate for starting with five taxis running 24 hours a day. If you already have a car, you can start driving for Uber or Lyft. All you have to do is get a business license, pass a background check, and have a current car inspection. You can run a successful business fairly easily. The startup costs for this kind of business is around $300. [su_table responsive="yes" alternate="no" fixed="yes"]| Taxi Business Startup Costs | |||
| Low (Lyft or Uber) | Average (Taxi with Dispatch and 5 Vehicles) | High (Taxi, 5 Years) | |
| Space | $0.00 | $700,000.00 | $875,000.00 |
| Legal Fee | $300.00 | $4,500.00 | $22,500.00 |
| Software | $0.00 | $3,000.00 | $15,000.00 |
| Equipment | $0.00 | $45,000.00 | $225,000.00 |
| Insurance | $0.00 | $40,000.00 | $200,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $0.00 | $0.00 | |
| Wages | $0.00 | $438,000.00 | $2,190,000.00 |
| Unexpected | $0.00 | $20,000.00 | $100,000.00 |
| Other | $50.00 | $116,343.75 | $581,718.75 |
| Total | $350.00 | $1,390,843.75 | $4,329,218.75 |
How much does it cost to start a laundromat business?
Starting a laundromat can cost nearly $1 million to get started and about twice that over the first five years. The building, equipment, and utilities are most of the cost. [su_table responsive="yes" alternate="no" fixed="yes"]| Laundry Business Startup | |||
| Low (Go to people's homes and do their laundry for them.) | Average (Laundromat, 1 Year Expenses) | High (Laundromat, 5 Years) | |
| Space | $0.00 | $700,000.00 | $1,100,000.00 |
| Legal Fee | $0.00 | $1,200.00 | $6,000.00 |
| Software | $0.00 | $3,000.00 | $15,000.00 |
| Equipment | $0.00 | $45,000.00 | $45,000.00 |
| Insurance | $0.00 | $1,200.00 | $6,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $100.00 | $5,000.00 | $25,000.00 |
| Wages | $0.00 | $62,400.00 | $312,000.00 |
| Unexpected | $0.00 | $20,000.00 | $100,000.00 |
| Other | $0.00 | $200,000.00 | $200,000.00 |
| Total | $100.00 | $1,061,800.00 | $1,929,000.00 |
| Content | Laundromat Blog | Ferndale Laundry YouTube | Rosie Wash Express |
How much does it cost to start a photography business?
You can start a photography business for as little as $500, which includes the price of the camera, a website, online photo gallery, and Adobe Photography Suite. If you want to upgrade to a higher end business with better equipment and a good marketing budget, you should expect to spend around $45,000 the first year. It’s even higher if you want a good studio, however. [su_table responsive="yes" alternate="no" fixed="yes"]| Photography Business Startup | |||
| Low (Low End Camera) | Average (High End Camera, Full Year Expenses, Full Licensing and LLC) | High (5 Years) | |
| Space | $0.00 | $3,000.00 | $15,000.00 |
| Legal Fee | $0.00 | $1,000.00 | $5,000.00 |
| Software | $100.00 | $2,000.00 | $10,000.00 |
| Equipment | $500.00 | $10,000.00 | $15,000.00 |
| Insurance | $0.00 | $1,000.00 | $5,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $0.00 | $0.00 | $0.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $3,000.00 | $15,000.00 |
| Other | $50.00 | $0.00 | $0.00 |
| Total | $650.00 | $44,000.00 | $185,000.00 |
| Content | UpFlip Photography Blog | Mile High Productions Video Pt. 1 | Mile High Productions Video Pt. 2 |
How much does it cost to start a handyman business?
Most places require handymen to be licensed contractors, so you can get started for as low as $2,750 without risking violating laws, but you can expect to spend around $40,000 during the first year if you really want to do it right. [su_table responsive="yes" alternate="no" fixed="yes"]| Handyman Business Startup Costs | |||
| Low (Just Get Started) | Average (Full Year Costs) | High (5 Years) | |
| Space | $0.00 | $3,000.00 | $15,000.00 |
| Legal Fee | $1,000.00 | $1,000.00 | $5,000.00 |
| Software | $0.00 | $2,400.00 | $12,000.00 |
| Equipment | $500.00 | $10,000.00 | $15,000.00 |
| Insurance | $1,000.00 | $2,400.00 | $12,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $7,200.00 | $36,000.00 |
| Material | $200.00 | $12,500.00 | $62,500.00 |
| Supplies | $0.00 | $0.00 | $0.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $0.00 | $0.00 |
| Other | $50.00 | $1,800.00 | $9,000.00 |
| Total | $2,750.00 | $40,300.00 | $166,500.00 |
| Content | North Seattle Handyman Blog | North Seattle Handyman Youtube | Modern Realty Uses Similar Skills Investing in Real Estate |
How much does it cost to start a soap business?
Soap businesses are fairly inexpensive to start. You could start making soap for under $100 and build from there. Successful business owners will spend nearly $70K in their first year of business to make around $200K. Check out the TruIC blog for the steps to start a soap business.Small Business Owners Funding Resources
Now that you know the costs associated with starting a business, check out some of our resources for finding funding.- Business Credit: Check out our preferred lending partners to get small business loans or a business credit card.
- Business Hub: Learn how to start a business entity, get insurance, and estimate a company’s revenue in our hub.
- Small Business Administration: Get information from the SBA on grants, loans, and local business resources.
- Evaluate Funding Options: Whether you are using a personal savings account or looking for alternative funding methods, check out our funding blog.
What Type of Business Will You Start?
We’ve covered the typical expenses associated with the costs of starting a business. Now it’s time to examine your personal expenses and cash flow to cover the filing fee and other business costs. Make sure to follow our YouTube channel and blog for more great information on how to start a business. Which business do you think is a worthwhile investment? How will you manage the financial implications of starting a new business?
Did you know the average poultry farm provides over a million dollars of chicken for people to eat every year? John Mathia and Geoff Scott showed us how to start a poultry farm and turn it into a vertically integrated award-winning business. You can too!
Geoff and John started Marion Acres in 2012 so they could eat healthier food than they could buy at the supermarket. Their first attempt at growing their own food went horribly wrong: tractors broke, rains made the land unusable, and the landowner sold the land out from under them––but they persevered. They went from 32 chickens in Geoff’s garage to a poultry farm with different animals, a grocery store, a slaughterhouse, and award-winning chickens.
We’ll share how they developed one of the northwest’s most successful poultry farms! You’ll learn about government subsidies, partnerships, and building a vertically integrated business.
They’ve got information any poultry business can use. Let's start by learning about the poultry industry.
Geoff and John started off with:
Of course you don’t have to start off with 5,000 chickens. You can start smaller and build your way up. But realistically expect to spend the cost of a down payment and the first two to six months of the mortgage right away. Then, with every 100 chickens expect to spend $1.500.
A farmer’s main costs include:
That means the average company can expect to achieve a maximum of $18,000,000 revenue and up to $867,000 per year. There are a lot of industry participants operating at losses.
Once the meat has been processed, it is sent to the wholesaler.
The supermarket industry makes $757 billion in revenue with 21.3% of that attributed to meat, poultry, cheese, and eggs. The purchase of food items accounts for almost 70%. They also average 1.8% profit, but Publix manages to hit a 27.6% profit margin.
Were you raised on a chicken farm?
If you weren’t, I bet you’ll be surprised by the number of chicken breeds available. Fortunately, Chicken Breeds List has an extensive knowledge-base about chickens. It’s basically a one-stop-shop about poultry farming for beginners, with over 31 different breeds ranked based on:
Where are you going to raise chickens?
Well, that depends on how many you have. Raising chickens can be a space-consuming venture. The poultry farm business can consume three to ten square feet per chicken meaning you can fit about 33 chickens in a 10 x 10 space.
That means an acre can hold between 4k and 14k chickens, but that doesn’t leave room for much else. That would also be a massive chicken house.
Chickens also do best in 70° to 75° weather, and they can have heat strokes when temperatures get above 90°. Geoff told us:
[su_quote]They've gotta have water. They'll die pretty quick if they don't. Especially in the heat.[/su_quote]
You also want to create a farm where the cost of land plus transporting poultry products is balanced to minimize costs.
Marion Acres uses what they call a Chicken Tractor with a Gravity Water Delivery System for their broiler chickens. It’s an 8-foot by 8-foot enclosure made from:
It’s time to buy some quality chicks from a reputable breeder. You can buy locally or online, but be careful when buying online. There are two ways to get new chickens and it sounds like a joke. You get to choose between the chicken or the egg.
Geoff told us:
[su_quote]You definitely wanna buy day-old chicks. Leave the hatching of the eggs to the hatchery.[/su_quote]
Based on my research, it seems that eggs and chickens sell for about the same price, which means you are better off with the chicks. If you decide to expand your business to incubate your own eggs later, you can potentially increase your profit. You’ll need to learn poultry science first, though.
Some breeders are more honest than others, so make sure they have a guarantee. You might also ask if they have an American Poultry Association flock certification.
Some of the ones consistently mentioned include:
Poultry farming is a delicate business. You have to:
There are several ways for a poultry farm business to sell their chickens and eggs. The business can sell its products to:
In addition to the basic equipment and chicken care, you’ll need to have your systems in place for standard business operations like:
[su_note note_color="#dbeafc"]
Step 1. Learn About Poultry Farming
Don’t try to just jump straight into the chicken business and expect to make a million dollars overnight. There’s a lot to learn about the chicken farming business. You will have federal, state, and local laws to follow. In addition, there are lots of capital expenditures. Plus, you’re raising animals, so without proper hygiene, your whole farm could die. Don’t be scared, though. You can start small. Geoff told us: [su_quote]I had read somewhere that you can turn around a chicken in eight weeks. So we're like, ‘Well, let's go get some chickens.’ So we went down to Wilco, bought every chicken they had, which was 32. Raised them in my garage, and processed them in early November. Then we left that farm, came across the street over here to the landowner.[/su_quote] Geoff recommended Reading Pastured Poultry Profits by Joel Salatin, plus we added some other best sellers on Amazon for avid readers. Here are some interesting reads I found while researching the topic: We’ll help you understand the poultry business so you can decide the best strategy for your chicken farm. Let’s start by looking at the poultry industry.How much to start a chicken farm?
Geoff and John started off with:
- 32 broiler chickens: $75
- One chicken tractor: $220
- 150 pounds feed: $100
- Gravity water dispenser: $60
- Total: Under $500
How much does it cost to start a chicken farm if you don’t own land?
Poultry farming will be more expensive if you don’t already have land to use. Chickens need space and a healthy environment. Chickens require at least three square feet per chicken plus space for storage, vehicles, home, etc. That means the first acre will hold a maximum of 4500 chickens and each additional acre can hold around 5,000 chickens. If you don’t have land, you can expect at least $100K startup costs for poultry farming. Some resources even say a poultry farmer should expect to spend $250K. The number of chickens you can hold will depend on the number of acres you buy. Check out the table below for an idea of how land will impact the costs and revenue.
Of course you don’t have to start off with 5,000 chickens. You can start smaller and build your way up. But realistically expect to spend the cost of a down payment and the first two to six months of the mortgage right away. Then, with every 100 chickens expect to spend $1.500.
Is chicken farming profitable?
A poultry farm business can sell both chicken and eggs on the commodity markets or direct to consumers (DTC). Let’s look at each.Poultry companies selling DTC
Egg production and meat production can be highly profitable if you sell directly to consumers. Marion Acres sells most of its meat to people and local restaurants, which differs from many farms that sign contracts with major poultry corporations. Geoff told us: [su_quote]Chicken is about a 30% margin.[/su_quote] Check out the rest of our interview with Geoff and Josh. [su_youtube url="https://www.youtube.com/watch?v=m4qhDGG1C3k"] They sell their meat at $13.99 per pound (lb) because it is non-GMO, pasture-raised broiler farming. That means they make about $50 per chicken and $15 is margin. Unless a poultry farmer processes the meat onsite, they shouldn’t expect to get such high margins, though.Selling as a commodity
A poultry farm business might sell on the open market as well. In this scenario, you’ll need to register with the USDA. You’ll be selling to companies that process the live chickens and turn them into breast, wings, thighs, and other meat for consumption. In this scenario, your profit would be: [su_note note_color="#dbeafc"] Broiler Companies Gross Profit = (market rate per pound x pounds of live chickens) - (costs of chicks + feed + labor caring for chickens + transportation costs). Egg Laying Companies Gross Profit = (market rate of eggs x number of eggs) - (feed + labor caring for chickens + transportation costs). [/su_note] You’ll want to compare current pricing for broilers versus eggs to decide which is more profitable. Alternatively, you could do a mix of broiler meat and egg laying. Geoff told us about how a lot of farmers operate: [su_quote]Bring on a bunch of debt, get all your equipment, and then farm for the rest of your life. You hope to pay off that debt. John and I took a little bit more measured approach.[/su_quote] During many years farmers will run at a loss and have to be subsidized by the government, so make sure you talk to a financial advisor before you jump into the poultry farm business.Poultry Industry
According to IBISWorld, the average American eats approximately 112 pounds of chicken, eggs, turkey, and other farm fowl each year. They expect Americans to increase their consumption by about half a pound per year. Chicken farms sell chicken and other birds based on the commodity market rates, which have ranged from 59 cents per pound at the beginning of the COVID-19 shutdowns to an all-time high of 99 cents per pound on June 17, 2022. Estimates expect that this inflation will level off and return to approximately 1% increases in the prices paid for full birds. From the poultry farm, the birds will go to: [su_note note_color="#dbeafc"]- A processing plant (or slaughterhouse)
- A wholesale processor
- Supermarkets and retailers
- The final consumer
Farming
A farmer’s main costs include:
- Land: It’s best to be near but not in big cities. Prices of land can vary dramatically. For example, you might find two to five acres ranging from $5,000 per acre to $2.5 million per acre.
- Chicken coop: Later on, we’ll explain how to build a chicken coop, but if you’re building with three square feet per chicken, you’ll probably end up spending a ton on your chicken house.
- Chickens: You might find day-old chickens for approximately $1 to $2.50 per chick based on the quantity, sex, and whether they are GMO-raised.
- Feed: You’ll need to feed the chickens, and you’ll probably want to buy in bulk. Per pound, smaller bags are much more expensive than when you buy a ton of feed.
- Transportation costs: IRS mileage deductions change each year, but have been over $.50 per mile since 2008. You can deduct actual costs instead.
- Employees: If you have over 500 chickens per owner, plan to spend $15 per hour according to the BLS.
Processing
Poultry and other meats require processing, which is an industry worth approximately $227.6 billion with a 4.8% profit margin according to IBISWorld. Poultry processing is included in US Industry (NAICS) Report 31161. I strongly suggest you pay for the report if you’ll be involved in processing, especially if you need a loan. Using current market rates, the spending breaks down to:- Purchase price per pound: $.99
- Additional expenses per pound: $.75
- Profit per pound: $.09
- Sell to the wholesaler by the pound: $1.83
That means the average company can expect to achieve a maximum of $18,000,000 revenue and up to $867,000 per year. There are a lot of industry participants operating at losses.
Once the meat has been processed, it is sent to the wholesaler.
Poultry Wholesalers
These are the companies that sell to grocery stores and restaurant chains. There are between 700 and 800 businesses in this category, but the industry is dominated by Sysco and Cal-Maine foods, which get a combined 52% of the revenue. Interestingly, smaller wholesalers seem to perform better with a higher profit margin of 3.19% on a little over $8 million revenue on average.- Purchase price per pound: $1.83
- Additional expenses per pound: $.40 per pound
- Profit per pound: $.57
- Sell to supermarkets by the pound: $2.80
Supermarkets
The supermarket industry makes $757 billion in revenue with 21.3% of that attributed to meat, poultry, cheese, and eggs. The purchase of food items accounts for almost 70%. They also average 1.8% profit, but Publix manages to hit a 27.6% profit margin.
- Payment to wholesaler: $2.80
- Profit: $.07
- Other expenses: $1.13
- Consumer price per pound: $4
Why does this matter to a poultry farm?
It means that by the time the food gets to the customer, three other companies are adding $3.01 to the price of the chicken, of which 75 cents is profit. That’s why John and Geoff’s business model is so brilliant. Instead of being a commodity that gets the short end of the stick, they’ve built their poultry farm into a slaughterhouse, packager, retailer, and online store. While this comes with additional costs, they effectively make 2.5 times the revenue while increasing the costs by approximately $2.28 per pound with potential profit margins of 10%.Governing Laws
There are a lot of laws covering poultry farming and egg production. You’ll want to familiarize yourself with:- EPA rules on animal feed operations
- USDA policies regarding livestock
- Farmers Service Agency (FSA, a division of the USDA specifically to help farmers succeed)
- State agencies may have policies about farming permits, licensing, or inspection. Check the FSA map to find experts on your state regulations.
- Many cities and counties may have regulations that apply to starting a chicken farm. I would suggest talking to your local SBA office and health district.
Market Forces
Weather, unemployment, and disposable income all have an impact on farming poultry. Chickens don’t sweat, so temperatures above 90 degrees can jeopardize their health. Make sure to take that into consideration if you are considering how to start poultry farming.Choose a Poultry Sector Next
Now that you know a little about the types of businesses involving poultry, what kind of poultry business are you going to start? [su_note note_color="#dbeafc"]- Sell chickens for meat
- Sell eggs
- Create feed to sell for poultry farmers
- Hatchery and breeding chicks
- Egg and meat processing
- Broiler farm: meat per pound of feed
- Laying eggs: Eggs per pound of feed
Type of Bird
Were you raised on a chicken farm?
If you weren’t, I bet you’ll be surprised by the number of chicken breeds available. Fortunately, Chicken Breeds List has an extensive knowledge-base about chickens. It’s basically a one-stop-shop about poultry farming for beginners, with over 31 different breeds ranked based on:
- Number of eggs per year
- Growth potential
- Aggressiveness
- Space requirements
- And other considerations
Step 2. Write a Poultry Farming Business Plan
Poultry farming business plans help you keep yourself focused on your goals. Whether you just want enough to feed family and friends, you want to sell eggs or chicken meat locally, or you have dreams of becoming a major chicken farming business, a business plan will help. Check out our blog about business plan writing and write your own. If that’s not your style, we understand. Marion Acres has never had an official business plan. They told us; [su_quote]I would say we're kind of unofficial. A lot of the growth that we have had is just kind of the market driving us that way. The goals we have are probably how to become more sustainable as a farm, and how to become more self-sufficient down the road. And that could be a one to two-year venture.[/su_quote] After you have a business plan for your poultry farm, you’ll know whether you need extra funding or not. If you do, you might want to consider business loans.Step 3. Poultry Business Loans
If you don’t already have land to start a poultry farm, you’ll need to get some. That means you probably need to buy it. Most landlords won’t love a chicken coop in their garage. Plus, there's other poultry farming equipment you’ll need. In addition to the standard loans available for most businesses, the FSA has farming loans that help people buy land, invest in equipment, and make it until the next harvest. There’s even youth funding to help 10 to 20-year-olds do farming projects. Put your kid to work raising chicks! Teaching them young is great for when they want their own business. Next, choose a location for your poultry farm.Step 4. Find a Location of Chicken Farm
Where are you going to raise chickens?
Well, that depends on how many you have. Raising chickens can be a space-consuming venture. The poultry farm business can consume three to ten square feet per chicken meaning you can fit about 33 chickens in a 10 x 10 space.
That means an acre can hold between 4k and 14k chickens, but that doesn’t leave room for much else. That would also be a massive chicken house.
Chickens also do best in 70° to 75° weather, and they can have heat strokes when temperatures get above 90°. Geoff told us:
[su_quote]They've gotta have water. They'll die pretty quick if they don't. Especially in the heat.[/su_quote]
You also want to create a farm where the cost of land plus transporting poultry products is balanced to minimize costs.
Step 5. How to Make a Chicken Farm
Poultry farm design is focused on creating effective layouts and processes to help chicken farms become more profitable and efficient. Check out the Big Book Project. You’ll need to do things like: [su_note note_color="#dbeafc"]- Establish how to position everything on your land.
- Decide how to make the most of your space.
- Build a chicken coop.
- Manage your supply chain.
- Purchase and care for your chickens.
- Process and sell your poultry products.
How to start a poultry farm: Build a Chicken Coop
Marion Acres uses what they call a Chicken Tractor with a Gravity Water Delivery System for their broiler chickens. It’s an 8-foot by 8-foot enclosure made from:
- Nine 2” x 2” wood beams: $4 each = $36
- Seven 8’ x 2’ corrugated steel panels: $22 each = $154
- Chicken wire: $39 (should be approximately 1 roll)
- Nails and screws: $5
- Estimated Total: $234 + tax, shipping, and handling
How to start a poultry farm: Buy Feed
Every chicken will need to eat. Without poultry feed, you’ll have a hard time keeping your chickens healthy. Chicken feed is made with specific purposes in mind. You can buy poultry feed for:- Baby chickens: Starter food is best for ages that range from day old chicks to 20 weeks.
- Chicken broilers: If you’re just trying to raise chicks to sell the meat, get food specifically for broilers.
- Teenage chickens: If you want to keep your chicks properly cared for until they each become an adult chicken, you might want to change from starter food to grower food at six weeks. You’ll want to change this when they start laying eggs.
- Egg layers: Once chickens start laying eggs, they need layer feed to help produce healthier eggs. It’s like grower feed but with more calcium and minerals.
How to start a poultry farm: Other Equipment
You will need equipment based on the chicken products you sell, the space you have, and your budget. Some of the items you might need before you buy your chicks include: [su_note note_color="#dbeafc"]- Cages
- Feeders
- Waterers
- Waste removal system(s)
- Lighting instruments
- Brooders (for breeding)
- Heaters (for cold weather)
- Crates (for collecting eggs)
- Egg trays (for handling and selling eggs)
- Perches (for laying hens)
- Nests (for laying hens and breeding)
- Incubator (for breeding)
Get Your Chickens
It’s time to buy some quality chicks from a reputable breeder. You can buy locally or online, but be careful when buying online. There are two ways to get new chickens and it sounds like a joke. You get to choose between the chicken or the egg.
Geoff told us:
[su_quote]You definitely wanna buy day-old chicks. Leave the hatching of the eggs to the hatchery.[/su_quote]
Based on my research, it seems that eggs and chickens sell for about the same price, which means you are better off with the chicks. If you decide to expand your business to incubate your own eggs later, you can potentially increase your profit. You’ll need to learn poultry science first, though.
Some breeders are more honest than others, so make sure they have a guarantee. You might also ask if they have an American Poultry Association flock certification.
Some of the ones consistently mentioned include:
- Jenks: Business success is often measured by profitability, but longevity is also important. As the longest operating poultry company supplier, they know they understand the poultry farm business.
- Cackle Hatchery: If you are looking to buy from only one supplier, Cackle is probably the place. They sell pretty much everything you need for raising and selling chickens. Plus, they’ve been around for over 80 years.
- Privett Hatchery: If you are on the west coast, you might consider getting your chickens from Privett. It’s in New Mexico making it more convenient for a farmer located in the southwest United States.
Step 6. How to Run a Chicken Farm
Poultry farming is a delicate business. You have to:
- Feed your birds the proper nutrients: We discussed this in the section on feed. This will help promote chicken health.
- Treat against poultry diseases: If your flock catches a chicken disease, you need to separate the sick ones and care for them. You may also have to hire a vet. Learn more about diseases chickens catch.
- Protect against predators: We discussed this during the section on design.
- Dispose of their waste: You’ll need a waste disposal system to help keep the chicken coop clean.
- The deep litter system is a method of composting inside the coop.
- You can also use an automated system.
- Treat against poultry diseases: If your flock catches a chicken disease, you have to separate sick ones and care for them. You may also have to hire a vet.
- Maintain documentation of care: You'll need a great system to document your date of purchase, care, date of processing, and more. Check out USDA documentation requirements.
Step 7. Process the Birds
Once the birds have matured to an age you can sell them (typically six to 20 weeks), you need to turn them into meat. Most people will do this using an external processing company, which we discussed in the industry overview, but Geoff and John do it themselves. They told us: [su_quote]I wish we would've known more about how it was going to go with the county in developing the processing facility. I think we probably would've just hired a project manager and said, "Deal with the county, make sure everything is taken care of. Let us focus on the stuff we're good at. And I don't wanna be distracted by explaining to the county about our storage tanks... In the end, I think it (hiring a land-use consultant) probably would've saved us a lot on (the) schedule.[/su_quote]Step 8. Sell the Chickens or Eggs
There are several ways for a poultry farm business to sell their chickens and eggs. The business can sell its products to:
- Consumers: Reach this target market through websites, social media, your own retail location, and farmers' markets.
- Restaurants: Get in touch with restaurant owners through similar channels as consumers but also through trade organizations.
- Poultry processors and wholesalers: Join trade associations or keep reading to find out how to farm for Perdue or Tyson.
How to start a chicken farm for Perdue
If you want to learn the benefits of poultry farming with Perdue, check out the links on their poultry initiatives. As a Perdue farmer, you get access to: [su_note note_color="#dbeafc"]- Some of the most advanced systems in the industry
- A consistent supply of industry best practices
- A regional vet dedicated to helping provide care for your poultry
- Flock advisors to help you maximize gross income and profit
- Technical assistance to maintain your systems
How to start a chicken farm for Tyson
If you’re wanting to contract with Tyson, check out their prospective farming partners page. They use guidelines from the University of Georgia and contract with more than 6,000 contract farmers. Contact the nearest live operations manager if you’d like to discuss how to start a poultry farm with Tyson.How to start a chicken farm to sell eggs
Egg-selling poultry farms have many of the same requirements as broiler farms, but they are focused on getting the most eggs per unit of feed. You’ll be trying to keep your chickens healthy for a longer period of time because layers often start egg production near 20 weeks and can produce eggs daily for three to four years.Step 9. Other Business Functions
In addition to the basic equipment and chicken care, you’ll need to have your systems in place for standard business operations like:
[su_note note_color="#dbeafc"]
- Hiring
- Accounting
- Marketing
- Bartering (unique to farming)
How to start a poultry farm: Hiring
Marion Acres, LLC emphasizes two aspects when hiring:- Skill: Do they at least somewhat understand the job?
- Personality: Are they fun to be around? Similar values? Work Ethic?
How to start a poultry farm: Accounting
Marion Acres uses a variety of tools for accounting. John told us: [su_quote]Geoff does (accounting), but we do use QuickBooks Online, a lot of spreadsheets.[/su_quote] You can connect QuickBooks to most software, so you might be able to integrate it with other software you love. Geoff and John told us: [su_quote]We use Clover for here in the store. Shopventory, which handles our inventory. And we do use Square for some of our online.[/su_quote] Make sure you understand your accounting processes because you’ll need to have sufficient funds or be well documented for the farm programs. Learn about other accounting software for farmers and have a professional accountant help you set it up properly.How to start a poultry farm: Marketing
John discussed their marketing strategy with us: [su_quote]We have mainly my wife who oversees that team, Rachelle. There (are) about two people right now, besides her. So three total. We use Wix, which is very user-friendly, and a very simple platform. It just uploads some pictures and types in some things and they make it look good. So kudos to Wix. The team that manages that also manages the inventory.[/su_quote] Marion Acres uses social media because it’s so powerful. Check out their Instagram and LinkTree. Like most business owners, they have found that their search engine optimization is what truly helps drive awareness. They also mentioned that customer service is a big part of their value. They treat people like family and have a beautiful view with picnic tables. Geoff and John have created such a pleasant experience that some customers come almost daily.
Go start your own business!
Chicken is a staple of most people’s diets. Now you have an idea of how to start a poultry farm, so take a training course with poultry farming for beginners, buy some baby chicks, and get farming today! Which type of farming would you rather do, broilers or egg-layers?Comments
Gloria Lamoa@
2023-01-16 02:55:14
Need to start coffee shop I have no funds
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