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The 49 Essential Questions to Ask When Buying a Business

December 22, 2023

The 49 Essential Questions to Ask When Buying a Business

Wouldn’t you like to boost the chances that a business you purchase is a lucrative cash cow instead of a money pit?

You want to make a good decision, and there are essential questions to ask when buying a business.

Budding business owners often buy a business without asking the right questions to become successful. You want to ask questions that reveal all the red flags and minefields that could cause the business to blow up in your face six months later.

We’ll discuss questions to ask yourself before and after approaching businesses and questions you need answered about any business’s history, finances, and the management of the business venture.

Read from start to finish or click any of the links below to jump right to the topic that interests you most.

There’s a lot at stake here. So, sit down and come up with an exhaustive list of questions to ask that’ll elicit the exact information you need. Equally important, write down the answers you receive so you have this knowledge when you most need it.

Buying an existing business checklist

Top-down shot of a checklist at a workspace next to a laptop, notebooks, pen, and a potted succulent

There are so many questions to ask before buying a business involved in any industry. You should probably have a checklist with you to verify that you have successfully asked all the due diligence questions to ask when buying a business. Download our buying a business checklist.

Ask yourself before buying an existing business…

1. How will the business further my goals?

You should have a reason for buying the business. Are you trying to acquire technology, customer lists, and employees or achieve other goals?

This question should impact how you evaluate every decision. If an answer doesn’t align with this goal, you may need to ask clarifying questions.

2. Is it better to start a new business instead of acquiring a business?

Do a sanity check before you go and buy a business. You don’t want to buy a business that’s a mess if you can save money by, for example, buying the equipment you want and starting your own business yourself.

3. Can you afford to buy the business?

Business partners sitting down with a laptop and paperwork discussing whether they can afford to buy a new business

You’ll need to establish whether you can afford to buy the business. You’ll have three options as a purchasing business owner:

  1. Buying with cash on hand
  2. Seeking a business loan
  3. Offering the current owner an equity deal

Analyze your current cash flow and figure out how much money you’ll be able to spend on the business. Make sure you have enough money for the down payment. It’s usually 10 to 20% of the purchase price.

Then, come up with a price tag and stick to it.

Pro Tip: Eager to buy a business but need more help? Bookmark our comprehensive How to Buy a Business With No Money guide.

4. Can your business manage the acquisition?

If you already own a business and are planning a merger, know that a business purchase can be disruptive to business operations. It takes management time away from both small business owners, and key employees from the newly acquired business will take time to acclimate to the new company culture.

5. Will the two cultures blend well?

Business owner and a consultant reviewing information on a tablet

Similarly, if you already own a business and want to grow by buying another, as a new owner, you’ll need to consider how the management team and employees of each organization will work together. Cultural differences can create real problems when you buy businesses.

6. What third-party consultants do I need to hire?

A business owner may need consultants when buying small businesses. You’ll probably need:

  • Contract lawyers
  • Financial analysts
  • Auditor
  • M&A marketing strategists
  • Cultural consultants
  • Human resource experts

7. Is this the best company to purchase currently?

Before buying a company, make sure that it is the best business to achieve your goals.

Keep reading for more questions to ask when buying a business.

Questions to ask a business owner about its history

QuickBooks blog post on tax forms, schedules, and resources on a desktop computer

You’ll want to know about the history of the business you’ll be buying. An honest business owner will talk about the mistakes the owner made during the business’s history. Hopefully, they’ll share valuable pointers on how to avoid making the same mistakes during day-to-day operations.

That’s why you should ask these questions about business history.

8. Why are you selling?

You might learn about recent problems the owner is having. The beauty of this question is that it’s blunt and might tell you exactly what you need to know.

However, you might get an answer like “I want to retire” or “It’s time to see the world.” Although these answers can be truthful, business owners frequently use them to cover up red flags when buying a business.

That’s why it’s up to you to dig deeper to uncover why the business owner is looking for an exit strategy. Sometimes, you’ll just have to trust your intuition.

9. How long have you owned the business?

Woman business owner in an apron with boxes, shelves, and a laptop in the background

When a current owner has operated a business for a long time, you’ll probably be buying a company with a loyal customer base and brand recognition.

Past longevity is an excellent indicator of business success. So, if the proprietor has been in business for three decades, you’re probably purchasing a valuable asset that’ll continue to be a cash cow for you, too.

10. Why did you originally start or buy the business?

This question helps establish the mindset of the current owner. It might also show differences in motivations that could be impacted if a company grows.

Keep reading for financial questions to ask when buying a business.

Questions about the company’s finances

You’ll want hard financial data, right? Here are some questions to ask to get the numbers you need:

11. What’s the annual gross revenue?

This will tell you how much money you’ll be able to pull in with the existing business. But probably even more important is the next question…

12. What are the ongoing costs?

This business question will help you establish how much working capital the company has.

Asking this question and the next one together can be a good way to establish how well the business owner manages its financial statements.

13. How much profit have you made over the years?

Daily calendar next to stacks of hundred dollar bills

Look closely at these figures. High gross revenues and low profit margins indicate high overhead—which is either a red flag or an opportunity.

14. What is your profit margin?

While this may seem the same as the last question, you want to ask questions differently to see if you get consistent answers.

15. Will I be taking on any liabilities?

When you are buying a business, you could also be picking up undisclosed outstanding debt. This could significantly jack up what you’ll pay. That’s why it’s so important to ask about legal obligations!

Any legal obligations and liabilities you will not assume need to be paid off before closing. Don’t let the owner say he’ll pay them off later because the legal doctrine of “successor liability” means you become liable after business purchasing.

Pro Tip: A better way to handle liabilities is to subtract them from the offer you make when purchasing the business from the previous owner.

16. Can I view the cash flow statements?

Once you start seriously considering buying a business, you’ll want to get the financial statements verified by an independent auditor.

This individual will scour the books with a proverbial fine-tooth comb to confirm that what the owner told you is the truth.

And if your auditor does their job right, they’ll leave no stone unturned.

Questions about selling price

Young man with disheveled hair looking up toward a thought bubble with a dollar sign in it

Ask questions that’ll help you get to a more precise determination as to how much the small business is worth. This information will help you pay a reasonable price for the company so you’re not swindled. If you overpay, this could leave you in dire financial straits, which could ultimately lead to the failure of your business.

Questions to ask about price include:

17. How much are you asking?

Try to get at least a ballpark figure for how much the owner wants. This will let you know if proceeding to the negotiation stage will be worth it. The price should be no more than three times the annual profits.

18. How did you arrive at the purchase price?

Again, this is the kind of question that’ll give you a little peek into the mind of the owner. Listen carefully, and then decide whether you think their answers are trustworthy.

19. What assets am I getting?

Man unloading boxes from a work van surrounded by social media icons including Facebook, X, Instagram, and YouTube

This includes both tangible (things like delivery trucks, cooking equipment) and intangible (goodwill generated, social media accounts) assets of the existing business. You want a comprehensive inventory of every single thing you’ll be getting in the sale.

20. Have you ever had the business appraised by an independent auditor?

An independent appraisal will give you the best idea of how much you should pay. So, if one hasn’t been performed, you should think about having it done before you buy. This way, you’ll know the value of the business you’re thinking about acquiring.

21. How much access will my auditor have to your books?

You’ll want to make sure that you or your financial professional can look at the business’s financial statements for the last three to five years. These include tax returns, income statements, balance sheets, cash flow statements, and any current contracts or leases. If you’re going to have an independent auditor look at them, make sure you hire a reputable one.

While it would be nice to trust a business’s own financial analysis, it’s best to be sure the statements have been vetted by accounting professionals. If the owner refuses, he may have something to hide. In that case, it would be best to just walk away from the deal.

22. What do you think the goodwill value of your business is?

There might be a lot of intangible things that go into the owner’s personal valuation of their existing business that the hard financial data won’t reveal. These include things like the reputation of the company, customer lists, and employee expertise.

Questions about financing

Man in glasses and a casual sweater sitting at a desk reviewing financial paperwork with coins flying overhead

The following questions will help clarify your financing options:

23. Are you willing to finance the transaction yourself?

This will indicate whether the owner believes in you and the small business. Seller financing usually covers 10% to 25% of the purchase price of a company. It can be used to add to a down payment.

If you can get your seller to put some money on the line by financing the sale, it might serve as an indication of the seller’s confidence in the future of the small business. They know more about the business than you do, and if they’re not willing to gamble on its success, why should you?

24. What financing options do you recommend?

The current owner might know sources that you don’t know about. It doesn’t hurt to ask!

25. Are you willing to take a standby position?

Most small business loan lenders loans insist that sellers take a standby position for about two years. This means the seller won’t receive any payments during that time. If your seller won’t finance the entire transaction, find out if he’d be willing to take a standby position so that the rest of the deal can be funded.

Questions about day-to-day management

Casually dressed woman business owner jotting a note while holding folders and steno pads

Devise a series of carefully written questions to ask that’ll help you figure out how the small business generates revenue and how it’s run on a daily basis. The better you understand all this, the more confidently you can operate your new business. Businesses with a steady revenue stream are the safest bet.

Ask questions like:

26. How does the business generate revenue?

You’ll want to know how you’ll get paid—whether that’s a one-time payment, through a subscription, or some other means. Some businesses have unique ways of generating revenue that might not be familiar to you.

27. Does the business have a list of profitable clients?

If the small business you’re thinking about acquiring has one, ask to take a look at it. This list could be a goldmine for you, making it one more reason to buy the small business.

28. What’s your marketing plan?

Screenshot of Fortune article on creating a marketing strategy for small business

Ask the owner what kind of marketing he’s done in the past—and what worked and what didn’t. This way, you’ll get valuable feedback on the marketing that’ll get the most bang for your buck.

29. Exactly how many hours do you work each week?

This is an indication of how much of your time your business will eat up. Even the most die-hard entrepreneurs will want to get away once in a while. So, find out how often the current owner was able to get away. You want to know what you’re getting yourself into!

30. Are you currently paying yourself?

If the owner isn’t getting paid, this is a red flag. You want your venture to generate enough profits that you can draw a salary.

31. How quickly does the business get paid for services and goods?

Stacks of quarters next to a white alarm clock

If there’s a time delay between the delivery of merchandise and payment, there might be a supply chain problem. You might want to take a closer look at that before you agree to buy the business.

32. Can you stay on for a short time to ensure a smooth transition?

Buying an existing small business isn’t like making other large purchases. No matter how much you know about what you’ll be selling, there’s probably going to be at least a bit of a learning curve. That’s why it would be great if the owner could stay on for six to 12 months to help you learn the ropes.

33. Who are your competitors?

Many businesses fail because they don’t meticulously study their competition. You need to know your competitors inside and out so you can effectively compete against them after buying a business.

34. How much of the success of the business is due to the owner’s personality?

Smartly dressed business woman standing in front of a cityscape

If the answer is “a lot,” you might think twice about buying this business. That’s because this is something that’ll be hard to replicate, even with hard work.

35. May I talk to customers, employees, suppliers, and others to independently verify the information I’ve learned from you?

You need to get your information from secondary sources—not just the owner. This way, you can make sure it’s as accurate and truthful as possible.

36. Do you have any tips on how to make the business as successful as possible?

This question will help the owner formulate in his mind precisely what he’s done over the years to make his business successful. The answer might result in valuable information you can replicate so that you’re successful, too.

Miscellaneous questions

Woman in a casual orange sweater and jeans with a thinking face holding a tablet and surrounded by question marks on a blue background

37. What licenses or permits will I need to get?

You’ll want to make sure you comply with the law. Also find out how many of the current owner’s licenses and permits will transfer over to you.

38. Are there any pending lawsuits?

If legal matters are hanging over the business’s head, this is definitely a red flag. Issues like that can quickly drain you of your financial resources.

39. Are you a member of any industry organizations?

If they are, ask which memberships have been the most beneficial for them, and don’t hesitate to ask for introductions.

Additional questions to ask yourself

List of other questions

Also, put yourself in the hot seat and ask yourself some probing questions, like:

40. Is this the kind of business that’ll bore me to tears a few months in?

Purchasing a business because you’re bored isn’t a good reason. Get a hobby instead. Running a business can be tedious, and it definitely is hard work.

41. Is my significant other going to be supportive?

For better or for worse, being an entrepreneur is going to affect your relationship with your spouse. They will be going along for the ride, whether they want to or not. Have a frank discussion to make sure they’ll be able to put up with you working long days.

42. How can I improve the business to make it more profitable?

Man in a suit with a question mark hovering overhead staring up at stacks of coins while scratching his head

This is one of the most important questions to ask when buying into a business because it will ultimately tell you whether the asking price is worth paying. The more you can help the company grow, the more valuable it will be when buying small business operations.

43. Do I have the skills for success?

Take a good look at your professional repertoire and make sure you have the skills you need to make the business you’re thinking about buying a resounding success.

For example, if you’re buying a restaurant, it’s a darn good idea to have some experience actually working in one beforehand.

44. What kind of financial picture do the financial documents paint?

Take a look at all the financial documents with your certified financial professional. These are things like the tax returns for three years, balance sheets, and cash flow statements.

Then, decide whether the business is fiscally healthy enough to make purchasing it a sound idea.

45. How much have similar businesses recently sold for?

Sold sign next to wood block storefronts

To get this information, visit local county offices to see which commercial properties recently had a change in ownership. There are also online resources that can help you find this information.

46. Do I really need financing, or can I find creative ways to do an all-cash deal?

There might be some circumstances under which an all-cash deal makes sense. However, consider the following question, too…

47. Is an all-cash deal even a good idea?

Few buyers can afford an all-cash deal. Even if you could, incurring that level of risk might not be for the best.

48. Have I come up with a business plan I can show to potential lenders?

UpFlip’s How to write a business plan blog post on a laptop

A business plan shows that you’re serious about your business. It’ll also reveal how feasible it is. These are two things potential lenders are going to want to know.

49. Will I keep all the employees?

Try to figure out which ones will be indispensable assets to the business and try to sweet-talk them into staying. It’s also a good idea to meet with the employees once it looks like the sale’s going to happen. Make time to answer any of their questions regarding your future plans for the business.

Don’t forget to download our free checklist

Download our free business buying checklist if you haven’t already.

How to buy an existing business

Woman reading UpFlip’s how to buy a business blog post on a tablet

The questions to ask when buying an existing business are part of the due diligence process that will be conducted as the purchase unfolds.

The process of buying a business includes:

  1. Find a business to buy
  2. Determine your budget and financing options
  3. Perform due diligence
  4. Establish business value
  5. Create and enter into a business sale agreement

Check out our blog about buying businesses for more information.

Are you ready to buy a business?

If you’ve had a lifelong dream of buying a business, asking the right questions can make all the difference when buying a new business venture. The best way to know what questions to ask when buying a business is to come prepared with a list, which we provided for you.

Don’t let either the owner or yourself off the hook.

You’re buying a business that will be a significant investment of time and money. Asking the right questions will help you to get a business for a fair price, prepare you for the difficulties of ownership, and ensure your long-term success.

So, before you buy, download your free list of questions. You don’t have to limit yourself to the questions we’ve prepared. Modify the list as you go!

Which of these questions are most beneficial for getting the information you need to make a decision? Let us know in the comments!

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220 Fun Names for Businesses (2024)

Y’all ready to have some fun? It’s important to have fun with what you do, and running a company is no exception. Have you ever considered choosing a funny business name?

I have. A bunch of friends and I decided to start a crypto project, and the business name is Bawls Onu. It’s about having fun, creating awareness for men's health, and being brave enough to pursue your dreams.

This is the first funny business name I have used, and everyone’s been surprised by how well it’s worked. Just to give you an idea, the brand’s personality has helped it stay in the top 10 trending crypto for most of January 2024, has had around $10M in trading volume, and has a market cap ranging from $500K to $4 million.

[su_note note_color="#dbeafc"] Most of this is attributable to two things: a funny business name and a good team. So let’s talk about how to choose fun and funny business name ideas. Whether you want something that’s tongue-in-cheek or just good, clean fun, you can click on any of the links below to jump to the section that interests you.

Fun Names: Great for Businesses, Products, and Beyond

Fun names for a business can be used in every industry. You can create fun business names, project names, website names, event names, and product names. The whole point is to make the naming process enjoyable and increase the likelihood of people remembering your business name.

20 Fun Business Names

You might want to consider some of these fun business name ideas:

  1. Laughing Cow
  2. Giggles & Glows
  3. Silly Sally's
  4. Wacky Wednesday
  5. Crazy Carl's
  6. Goofy Goods
  7. Joker's Wild
  8. Puns R Us
  9. Nerd Herd
  10. Geek 2 Chic
  11. Hipster Haven
  12. Cool Beans
  13. Radical Reads
  14. Sick Beats
  15. Tasty Treats
  16. Cozy Cafe
  17. Fun Factory
  18. Awesome Apparel
  19. Fabulous Finds
  20. Three of a Kind

Pro Tip: Funny company names span apparel, restaurants, music, and other industries. When you find a funny name, you’ll want to check search engines, social media, and the U.S. Patent and Trademark Office (USPTO) to make sure the fun name you want to use isn’t already taken.

28 Fun Project Names

You might also want a funny name for a project you work on in your business. For instance, we named our NFT collection Project Bojangles, which we arrived at after narrowing down a list of fun company names. Consider some of these funny names perfect for projects:

  1. Awesome Project
  2. Great Adventure
  3. Dream Team
  4. Next Big Thing
  5. Game Changer
  6. Revolution
  7. Big Breakthrough
  8. Unicorn
  9. Magic Potion
  10. Golden Ticket
  11. Silver Lining
  12. Happy Ending
  13. Good News
  14. Great Escape
  15. Wild Ride
  16. Rollercoaster
  17. Ups and Downs
  18. Good Times
  19. Learning Experience
  20. Growth Opportunity
  21. Challenge
  22. Puzzle
  23. Mystery
  24. Adventure
  25. Quest
  26. Journey
  27. Dream
  28. Mission

20 Fun Newspaper Names

Publications need names, too. While you might go with something professional like The New York Times, it’s way more fun to go with something like The Daily Sqwak. Consider some of these fun and funny newspaper names as well:

  1. The Daily Pun
  2. The Funny Papers
  3. The Onion Ring
  4. The Weekly Wackadoo
  5. The Absurdist Times
  6. The Farce Gazette
  7. The Satirist
  8. News of the Weird
  9. The Giggle Herald
  10. Your Daily Dose of Humor
  11. The Laughing Times
  12. The World According to Me
  13. The Opinionated Observer
  14. The Cynical Chronicle
  15. The Sarcastic Spectator
  16. The Critical Inquirer
  17. Relentlessly Pessimistic News
  18. The Insufferable Know-It-All
  19. The Unbiased Truth-Teller
  20. Voice of the People

Pro Tip: Most newspapers have gone online to adjust to the times. Make sure you learn digital marketing best practices like search engine optimization (SEO) if you are creating a new publication.

14 Fun Website Names

A funny business name might be the same as your website domain, or you might have a completely different name for your website. Consider some of these:

  1. The Daily Giggle
  2. The Fun Factory
  3. The Laughing Place
  4. My Joyful Blog
  5. The Happy Times
  6. The Awesome Site
  7. The Terrific World
  8. A Delightful Universe
  9. An Amusing Planet
  10. Hilarious Hub
  11. Witty World
  12. The Clever Corner
  13. The Smart Space
  14. The Laugh Along

Pro Tip: I find it a bit ironic that one of the most well-known places to buy a web domain has a funny business name. Look no further than GoDaddy to secure the domains for your funny business name ideas.

20 Fun Salon Names

Barbershop owner cutting a man’s hair

Girls just wanna have fun. And the rule applies when they’re looking for and booking at a salon, too. These funny company names are full of puns, plays on words, and other silly naming conventions that are perfect for barbershops, spas, and salons:

  1. The Hairy Situation
  2. Curls & Co.
  3. The Mane Event
  4. Hair We Go
  5. Cut Above the Rest
  6. Style Me Silly
  7. Lock Ness Salon and Spa
  8. Tresses and Teases
  9. Hair Today, Gone Tomorrow
  10. Snip-Snap Salon
  11. The Hairport
  12. Hair-Raising Salon
  13. Heads Up Salon
  14. Braids & Beyond
  15. The Hair Cave
  16. Hair Don't Care
  17. Just Do Hair
  18. The Salon Formerly Known as Hair
  19. Hair-Brained Ideas
  20. The Curly Q Salon

Pro Tip: Funny business names use wordplay to help people remember a business name. For instance, Hair Today, Gone Tomorrow jokes about the hair being gone once you cut it, while The Salon Formerly Known as Hair is a reference to Prince (or the Artist Formerly Known as Prince).

30 Fun Names for Events

Make a lasting impression with event names that are just as fun as the name for your business. Many companies in the music business world use catchy business names to attract their target audience to their events, and you can do the same. Check out these examples of sarcastic, fun, and funny ideas perfect for the event management industry:

  1. The Un-Gala
  2. The Party Animals Party
  3. The Awkward Dinner Party
  4. A Terrible Talent Show
  5. The Donation Connection
  6. So-Bad-It's-Good Movie Night
  7. Disaster Bake Sale
  8. Scavenger Hunt from Hell
  9. The Costume Contest That Went Too Far
  10. The Slappin’ Happenin’
  11. The Karaoke Night That No One Could Hear
  12. The Silent Auction Where No One Bid
  13. Captured in a Dream
  14. The Prank War That Got Out of Hand
  15. The Office Party That No One Wanted to Go To
  16. Trainwreck Reception
  17. Rockin’ Frolic
  18. The Birthday Party With No Candles
  19. The Holiday Party That Was a Complete Disaster
  20. The Disco Inferno
  21. The Groove Zone
  22. The Graduation Party With a Questionable Diploma
  23. The Fundraiser That No One Donated To
  24. The Conference That Was a Total Waste of Time
  25. The Town Hall Meeting That No One Attended
  26. The Sparkle Party
  27. The Protest That No One Noticed
  28. The Rally That No One Came To
  29. Come Fly With Me
  30. Moon Over Miami

Pro Tip: Some of these humorous name ideas might not be the best. Most of the time, you want to avoid negative connotations when choosing a name for your business or event. Know your audience and customers, and keep it on the up and up when you need to!

20 Fun LLC Names

When your brand registers, there’s a good chance you’ll need an LLC. Businesses can have some fun with wordplay to create a memorable LLC name. Consider some of the following:

  1. Laughing LLC
  2. Giggling LLC
  3. Whimsical LLC
  4. Quirky LLC
  5. Offbeat LLC
  6. Wacky LLC
  7. Nutty LLC
  8. Silly LLC
  9. Crazy LLC
  10. Kooky LLC
  11. Madcap LLC
  12. Zany LLC
  13. Daffy LLC
  14. Goofy LLC
  15. Slapstick LLC
  16. Farcical LLC
  17. Absurd LLC
  18. Ridiculous LLC
  19. Preposterous LLC
  20. Ludicrous LLC

Pro Tip: Note that every funny name example above ends in LLC. That’s because businesses that are formed as an LLC have to have it in the business name. You can register other names for customer-facing interactions. Those are called Doing Business As names (DBA for short).

20 Fun Travel Agency Names

Woman in a bright orange jacket holding car keys in front of an orange pickup truck

Creative name ideas for a travel agency can help potential customers remember your company. Consider some of these examples to add humor to your company's advertising.

  1. Adventure Travel
  2. Expeditions Unlimited
  3. Roughing It
  4. The Great Outdoors
  5. Backcountry Adventures
  6. Go Wild
  7. Beach Vacations
  8. Sun, Sand, and Surf
  9. Tropical Getaways
  10. Caribbean Cruise Pros
  11. Beach Bungalows
  12. Vacation in Paradise
  13. Family Travel
  14. Kids on Vacation
  15. Family Fun
  16. Family Friendly
  17. Vacations for Families
  18. Family Adventures
  19. Luxury Travel
  20. The Best of the Best

Pro Tip: While a funny company name might fit your brand’s personality, the government won’t accept any funny business when it comes to registering your company. Whatever business type you’re naming, make sure you follow all laws and regulations.

8 Funny Business Names for Pressure Washing Businesses

Pressure washing businesses can leverage funny business names that include words like suds and squeaky or incorporate iconic idioms about getting clean.

  1. Clean Slate Pressure Washing
  2. Power Washin' Good
  3. Squeaky Clean Pressure Washing
  4. Clean Genie Pressure Washing
  5. Pressure Washing Made Easy
  6. No Mess Pressure Washing
  7. Soap and Suds Pressure Washers
  8. Good ’n’ Clean Pressure Washing

Pro Tip: Check out Brown’s Pressure Washing franchise if you want to take the guesswork out of naming a pressure washing company.

20 Fun Names for Cleaning Companies

Cleaning business owner holding supplies

A cleaning company is a great place for funny company names that make a lasting impression. Let your creativity run wild and beat out stiff competition with these funny company names:

  1. Dirt Destroyers
  2. Clean Machine
  3. Queen Bee Cleaning Services
  4. Squeaky Clean
  5. Dust Busters
  6. Mop Squad
  7. Tidy Tots
  8. The Clean Team
  9. Mr. Sparkle
  10. Scrub-a-Dub-Dub
  11. Spotless
  12. Shine On
  13. Clean Freaks
  14. The Dust Devils
  15. The Dirt Busters
  16. The Window Wizards
  17. The Carpet Cleaners
  18. The Oven Cleaners
  19. The Grout Busters
  20. The Mold Removers

Pro Tip: Queen Bee Cleaning Services is actually taken. We partnered with the business owner who came up with this memorable business name to help people learn how to start a cleaning business. Check out our interview with him below.

https://www.youtube.com/watch?v=d4Iip7BHXwg

10 Fun Names for Painting Businesses

You can have funny business names for painting companies, too. There’s clever wordplay with paint words like:

  1. Color Me Happy
  2. Artful Impressions
  3. Painting with a Twist
  4. Creative Canvas
  5. The Colorful Palette
  6. Painting Paradise
  7. Brush Strokes
  8. The Art of Painting
  9. Masterpiece Makers
  10. Different Strokes For Different Folks

Pro Tip: If you can’t find a funny business name for your painting company, go check out some of the painters that offer franchises for sale. You could benefit big time from a business name that’s already built a brand.

10 Fun Vending Machine Business Name Ideas

Funny business names might catch the eye of small business owners who need a vending machine. Consider some of these funny business names:

  1. Snack Attack
  2. Vend ’n’ Dash
  3. Drinks and Munchies Vending (DAM Vending)
  4. Sinful Snacks
  5. Kum & Go (The gas station is rebranding so it will be available soon)
  6. Feed Me Vending
  7. Creamy Concoctions (Serves Dairy Products)
  8. Ice Cold Vending
  9. Too Hot To Handle
  10. Quick Cap(puccino)

Pro Tip: Once you’ve come up with some funny business names, go check out our free vending machine training course taught by Adam Hill or watch the video below.

https://www.youtube.com/watch?v=-s_Y-O1nosw

What Makes a Good Funny Business Name Idea?

Funny business names come from the creative use of words to arrive at a unique name that conveys humor.

Here are some tips for coming up with a good funny business name idea:

  • Make it relevant to your business. Your funny business name should be relevant to the type of business you're in. This will help people remember your business and associate it with your products or services.
  • Keep it short and sweet. A short and sweet name is easier to remember and spell.
  • Use puns and wordplay. Puns and wordplay can be a great way to add humor to your business name. Just make sure the pun is relevant and clever.
  • Don't be offensive. A funny business name should be funny, but it shouldn't be offensive. You don't want to alienate potential customers with a name that they find insulting or distasteful.
  • Get feedback. Once you've come up with a few ideas for funny business names, get feedback from friends, family, and potential customers. This will help you narrow down your choices and find a name that everyone loves.

How to Register Funny Business Name Ideas

After you’ve come up with creative and memorable business names, you’ll want to:

  1. Do your research. Make sure your funny business name idea is available and doesn't infringe on any existing trademarks. You can do a trademark search online or through the U.S. Patent and Trademark Office (USPTO).
  2. Choose a business structure. Once you've found a name that's available, you need to choose a business structure. The most common business structures for small businesses are sole proprietorships, partnerships, LLCs, and corporations.
  3. File your paperwork. Once you've chosen a business structure, you need to file the necessary paperwork with your state government. The specific paperwork you need to file will vary depending on your state.
  4. Get an EIN. An EIN (Employer Identification Number) is a unique nine-digit number that the IRS assigns to businesses. You need an EIN to open a business bank account and file your taxes.
  5. Get a business license. Depending on your business location, you may need to obtain a business license. The requirements for obtaining a business license vary from state to state and city to city.

This process will help you solidify your perfect name and help your company stand out against the competition.

Next Steps After Finding Your Perfect Name

Choosing your funny name is just the first step in building your brand. You’ll need to create social media accounts, a website, and marketing to attract customers and make a lasting impression.

What are some funny names you’ve seen for small businesses? Does their advertising and branding come off as humorous, too?

Business ideas

How to Resell Shoes (And Make $350K/Month)
Do you like shopping for bargains on clothing and shoes? Have you considered reselling sneakers?  Tia Hall started Sneak City five years ago, and today she and her business partner Anastasia Lemley make $350K per month between their online store and two retail locations. They started out buying valuable sneakers like the Jordan Brand at thrift stores for just $50. Now their business is one of the best places to sell sneakers.  [su_note note_color="#dbeafc"] They have all the info you need, including: [/su_note] Click any of the links above to jump ahead to that section.

Get to Know the Sneaker Resale Market

The sneaker reselling industry includes two main segments:
  1. Retailers and Ecommerce Stores: A sneaker business using this model will buy shoes in bulk and sell them in their stores.
  2. Used Sneaker Resellers: These companies focus on used rare sneakers that they can cheaply buy and sell for more on the sneaker resale market.
The combined industries have nearly $75.3 billion value and are expected to continue growing by 1-2% annually. Check out the table below to find more statistics about the sneaker game.
Sneaker Industry Statistics
Used Shoes Shoes Combined
Revenue (in billions) $14.18 $61.10 $75.28
Profit 8.20% 3.50% 4.39%
Profit in Billions $1.16 $2.14 $3.30
Number of Employees 277,000 320,000 597,000
Number of Businesses 71,162 12,848 84,010
Employees Per Business 3.892 24.907 7.106
Revenue per Employee $51,183.39 $190,937.50 $126,093.47
Expected Solo Entrepreneur Revenue $51,183.39 $190,937.50 $126,093.47
Expected Average Revenue $199,232.74 $4,755,603.99 $896,057.61
Expected High Revenue $941,800,000.00 $6,377,900,000.00 $6,377,900,000.00
Largest Company Savers Footlocker Footlocker
Source (IBIS World is Pay Walled) IBIS Industry Link 1  IBIS Industry Link 2
Now that you've got an idea of just how profitable this industry can be, let's look at the different routes to getting your share.

How Much Money Do I Need to Start Reselling Sneakers?

sneaker shoe displayed on top of scattered money on the floor You’d be surprised how little money you need to become a shoe reseller. Tia started reselling shoes and other clothes at thrift stores. She told us: [su_quote]You only need like $50 to start. I would buy them, mark them up, and sell on eBay. As I grew I opened my own store.[/su_quote] You can easily start with less than $1,000 if you have your own website and more than 1 pair of shoes to sell, but if you want your own retail store, you’ll need $100K+ normally.

What Are the Best Shoes to Resell?

The sneaker community is looking for rare sneakers that are stylish. Check this list of brands you should look for when buying:
  • Limited Edition Sneakers
  • Nike Air Jordan
  • Original Air Jordans
  • Yeezy’s (Kanye West Shoes)
  • Nike Air Mag
  • Hoka Shoes
  • Hey Dude Shoes
  • Golden Goose Shoes
  • Mephisto Shoes
Tia explained: [su_quote]The best shoes to resell in store are between $200-400, while online is a little higher.[/su_quote] Check out our interview with her below. [su_youtube url="https://www.youtube.com/watch?v=dJryzKeGwtU"]

What Are the Most Expensive Shoes in the World?

The most expensive shoes in the world cost a whopping $20 million dollars. Antonio Vietri created the Moon Star Shoes from meteorite, 30 carats of diamonds, and solid gold. You’re not likely to get your hands on these, but there are plenty of other valuable shoes you can resell. Check out more of the most expensive shoes.

About Sneak City: From $50 to $350K/Month Selling Sneakers

Sneak City is 5 years old and started out of Tia’s parents’ garage as a way to make money during college. Her sneaker reseller business became too big for her parents’ garage, so she got her first retail store, which she also uses to ship the shoes she sells on online marketplaces.  Sneak City is currently making $4.2 million per year and is an omnichannel seller using Shopify. They told us: [su_quote]We make about 50% of our sales in-store and the rest selling shoes online. The best place to sell shoes online is Instagram.[/su_quote]

How to Start Reselling Shoes

woman carrying a box and shoes while thinking Flipping shoes can be a profitable side hustle. Tia told us what a day looks like in the sneakers reselling business. Her day consists of five primary tasks while buying and selling sneakers.
  1. Buying Shoes
  2. Repairing and Cleaning Shoes
  3. Photographing Sneakers
  4. Adding Products to Instagram And Website Through Automation
  5. Shipping
Let’s look at each of these steps in greater detail. 

Step 1. How to Buy Shoes for Resale

You’ll want to understand sneaker reselling before you buy sneakers because people will try to sell you fake shoes. Avoid getting tricked by a side hustle when people sell used sneakers. Tia told us: [su_quote]You make money when you buy the shoe, not on the shoe resale.[/su_quote] It’s important to remember this because when you resell sneakers, the resale value is normally already specified by major resellers. The goal is to buy low, sell high, and make money on the difference. You’ll want to know:
  • Where to buy shoes
  • How to tell if shoes are fake
  • How much to price used shoes
  • How much to pay for used sneakers
Let’s start by discussing the best places to buy shoes.

Where to Get Cheap Sneakers to Resell

screenshot-and-sneakers There are a lot of places you can go to find a new pair of hyped shoes to resell in the sneaker world. You should consider the following locations when looking to start a side hustle reselling shoes:
  1. Wholesalers/Distributors: You can buy new Nike shoes and other brands that have limited releases from wholesalers and distributors. Flipping items this way creates profit from the difference between the wholesale price and the manufacturer’s suggested retail price (MSRP).
  2. Reselling Apps: You can find shoes on online services like Offerup, eBay, and Facebook Marketplace. You’ll be responsible for meeting the person, assessing the shoes’ value, identifying fake ones, and negotiating price, 
  3. Thrift Stores: Many people get into making money reselling shoes by starting at thrift stores.
  4. Facebook Groups: There are multiple sneaker reselling Facebook groups with more than 1,000 people in them. You’ll be able to find some there. You can check for ones in your area as well by adding your city to the search.
  5. Sneaker Con: Many locations have shoe conferences and trade shows where sneaker reselling occurs. Find niche market conferences.
Tia has used many of these strategies but explained: [su_quote]Now we buy 80% of our sneakers in store.[/su_quote] Keep reading to find out how to detect counterfeit shoes.

How to Know if Shoes Are Fake

Tia provided a list of ways to check if used shoes are fake. They include:
  1. Nike does not use stitch guides. If you can see the holes of a stitch guide under a black light, the shoes are fake Nikes.
  2. Check for a chemical smell. If it smells like chemicals, they are fake. If it smells like dirty feet, it’s harder to tell.
  3. Check the box. If you know what a Nike box looks like, a fake box will often be “too bright.”
  4. Shoes are too soft. Fake Nikes don’t use real leather, but instead use low grade materials.
You may also come across shoes that have the GOAT clean certification. If you do encounter this label, this is a good thing. It means the previous reseller sent the sneaker into GOAT and had them certified as legitimate clean resell sneakers. Next, let’s look at how to value shoes.

What is the Sneaker Resale Value?

You can look at the prices of shoes on online marketplaces like StockX and Goat. Tia recommends checking the shoe price on StockX. Shoes that sell on StockX are always new shoes. If they do not pass their inspection, StockX will send them back to you and return the customer’s money. This process makes StockX’s price the highest value you should expect to get for a product. You can also check other online marketplaces to get a better range of prices.

How Much to Pay for Used Shoes 

Tia explained she will normally take the StockX price minus 30% to get the price to pay a customer when she buys used shoes for reselling. IBIS World recommends keeping purchases between 43.8% and 71% of revenue. So Sneak City is paying on the high end of what most people or companies pay when buying and selling shoes. Check out the Sneak City video where they buy $100K of shoes at Sneaker Con. [su_youtube url="https://www.youtube.com/watch?v=CfA8eFAqcnA"] Cleaning shoes is the next part of sneaker reselling.

Step 2. How to Clean Shoes

Sneaker resellers can’t sell sneakers without cleaning them. You’ll want to make sure the shoes look nice and smell nice. It will make sneaker reselling easier, keep buyers happy, and potentially increase your seller rating.  Nobody wants to buy a pair of old sneakers with mud that smell like feet. Take the time to learn how to clean and sanitize the shoes before flipping sneakers. All you really need is some soapy water, and they’ll clean up nicely. Check out the video below. [su_youtube url="https://youtu.be/nta02Phk19U"] Some terms you can search to find common ways of cleaning Nikes and other shoes include:
  • How to clean leather shoes
  • Clean white shoes
  • How to clean suede shoes
  • How to remove odor from shoes
Next let’s talk about photographing sneakers.

Step 3: Photograph Your Sneakers

a man taking photo of a pair of shoes on the table Sneaker reselling requires pictures of the shoes to help people understand the condition. Depending on where you list the sneakers, you’ll find different photography requirements. Here are some common types:
  • Amazon: Main image should be jpeg, png, tiff, or gif with a 1600 pixel long side. The product should fill 85% of the image and the file name should be identical to the title of the listing. Learn more.
  • StockX: Reselling sneakers on StockX does not require pictures because they already have the pictures, and they only allow sneaker reselling of a brand new pair. You’ll have to send the shoes to StockX for them to inspect them before you get paid.
  • GOAT: Sneaker reselling on GOAT requires pictures if you have less than a 100% seller rating, the pair sold is used, or the new shoes have defects. The photos will be rejected if you can’t see both shoes clearly.
When in doubt, go with Amazon photography rules for reselling shoes on the secondary market. Customers are used to the white backgrounds. On your own site and social media, you may also want to use photos like the ones in this guide on photographing sneakers.

Step 4. Where Can I Sell Shoes?

We asked Tia about the best places to sell sneakers and she told us: [su_quote]Sell on Offerup or eBay starting off, but we use Shopify. It has hiccups, though. We pay almost 4% on every transaction.[/su_quote] She went on to explain that after she takes pictures, she posts them to Instagram, which she considers one of the best places to sell shoes. From there, she uses automation to add the sneaker resell listing to Shopify, pushing the listing to other places to sell used shoes, including:
  • Facebook, Instagram, Pinterest, and other social media
  • Shopify
  • Google
  • Email
  • Wholesale Channels
  • Handshake
  • Amazon
Tia said they use: [su_quote]All of them. Instagram and Tiktok are most beneficial.[/su_quote] You can learn more about Shopify Sales Channels. Don’t forget you can resell shoes on apps like GOAT and StockX as well.

Step 5. Shipping Services Are Crucial

screenshot of shipping instructions from stockx website Shipping is a major part of sneaker reselling. Tia told us that the first thing she does every morning is prepare for shipping the shoes that were sold overnight. The common providers of shipping in the US are FedEx, UPS, and USPS. If you are buying and selling sneakers on platforms like GOAT and StockX, you’ll need to ship them to the platform to be verified. Now that you know how to resell sneakers, let’s look at how Tia grew Sneak City.

How to Grow a Sneaker Flipping Company

Tia gave several pieces of advice on how to start reselling shoes that are specifically focused on growing the business. We’ll discuss:
  1. The importance of a job when starting out
  2. How to set Up a sneaker store 
  3. How to grow the business
  4. How to increase your social media following
Let’s look at each item in the list.

Start Sneaker Reselling as an Employee

You’ll probably want to have a job when you first start because sneaker reselling is expensive. Retail prices of Nike, Adidas, and other shoes can quickly add up. In fact, sneaker culture has shoes with a resale value of up to $50K at the time of writing.  Most of those shoes are tied to a famous basketball player like Lebron James or Air Jordan. Rappers also have a niche market that often attracts sneaker culture. Check out some of the highest offers for people wondering how to sell shoes online.

How to Set Up Your Sneaker Reseller Locations

You’ll need to consider the layout when you open resell shoe stores. Tia gave some ideas on setting up a store.
  1. Choose a location.
  2. Buy security cameras and a roll-down gate, and consider hiring an overnight security guard.
  3. Separate shoes between one-offs, bulk shoes, and high-value shoes.  
  4. Keep one-offs on one side, bulk shoes on the other side, and high-value shoes behind the counter.
  5. Wrap the high-value sneakers to keep them in good condition. 
  6. Keep each shoe brand together and sort them by size with the largest size at the top and the lowest size at the bottom. 
Tia and her partners were hesitant when they opened their first store, but looking back on the experience and with greater confidence after their initial success, they discussed the importance of growth.

Importance of Growth

Tia warned: [su_quote]Anything you’re going to grow from is going to make you uncomfortable.[/su_quote] She started in her parents' garage but grew to the point they asked her to get a space after a few months of running her side hustle selling Yeezys and Vintage Air Jordans. So she bought her first standalone location. When one store wasn’t enough, she opened a second retail space. Tia recently upgraded one of her resell sneaker stores to a mall with $13.5K monthly rent. She told us: [su_quote]More expensive stores have higher profit margins.[/su_quote]  She explained, [su_quote]Standalone [stores] are harder than malls. A mall has more exposure, but a lot higher costs.[/su_quote] This brings us to another point of how to resell sneakers: exposure.

Social Media for Sneaker Resellers

young woman shoawing a pair of sneakers infront of a camera For those wondering where to sell shoes, Tia told us: [su_quote]YouTube videos have been tremendous to sell my shoes.[/su_quote] Sneak City’s Youtube store has 130K followers, and it helps them sell more sneakers at the resale price. She explained how to resell shoes without it feeling like you are creating special content.  [su_quote]We record a video when people come into our store. That way, we can share interesting transactions that people can learn from.[/su_quote] They also travel worldwide with custom merch and record videos about how to start reselling sneakers.

Frequently Asked Questions About Selling Shoes

What is the biggest expense for shoe resellers?

calculator, money and a pair of shoes inside the box The primary expense to buy and sell sneakers on the resale market is the cost of the pair of shoes. Other expenses you should be aware of include shipping and boxes, which cost approximately $1 per box when you buy the boxes in bulk.

How to Sell on Stock X

  1. Sign up for StockX
  2. Select a payout method and currency 
  3. Create a listing 
  4. Print a shipping label
  5. Ship shoes to StockX within two business days
  6. StockX verifies your shoes
  7. Get paid
Head to StockX to learn how to shoe resell on StockX.

How to Sell Shoes on GOAT

notebook, tablet and a pair of sneakers on a black background If you want to resell an Original Air Jordan or other sneaker on GOAT, you’ll need to:
  1. Apply to sell on GOAT (They don’t give a timeline for approval because they only allow enough sellers to verify all transactions.)
  2. Wait for approval
  3. List items using SKU
  4. Take pictures of the shoes
  5. Print a shipping label
  6. GOAT inspects shoes
  7. Get paid
Learn more about how to sell your Nike Air Jordan sneakers or other shoes on GOAT.

Get Started Selling High Quality Sneakers

We’ve discussed where to sell sneakers, interacting with potential buyers, the best place to sell sneakers, and how to sell on GOAT.  If you’re ready to start reselling shoes, consider checking out some of our other blogs to get familiar with all the business registration requirements. Then tell us: Where have you had the most success reselling your sneakers?
Business ideas

How to Start a 7-Figure Poultry Farm (2024)
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. 

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?

Group of chicken eating 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
So, you don’t need a lot of money to start raising chickens. If you don’t have land, that’s another story. Let’s look at how much it costs if you need land.

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. Buying $100k of land graph 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"]
  1. A processing plant (or slaughterhouse)
  2. A wholesale processor
  3. Supermarkets and retailers
  4. The final consumer
[/su_note] As a result, a bird that sold for 99 cents per pound, increases to about $5.99 to $7.99 for a whole chicken in the supermarket. Breasts and tenders can go for over $4 per pound according to the USDA.  However, Geoff and John reap most of the profits from their poultry farming because they own the processing and supermarket. Let’s look at each of the players in the poultry farm business to see how it quadruples in price from the farm to the consumer.

Farming

Chicken farm 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
Processing is where most of the additional costs in the industry occur, but not where most of the profits are. At the time of writing, there are 5,486 processing companies, and the major players get 57% of the revenue and 98.25% of the profits. The major players are included in the chart below: Competitors chart table 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

Packed chicken on the market 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.
Don’t forget to register your farm. Marion Acres is a multi-member LLC, but it operates similarly to a partnership. Read our blog that walks you through how to register an LLC. 

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
[/su_note] Whichever one you choose, your focus should be on how to maximize the output for the lowest cost. Given the primary variable cost is feed, you want to focus on the following ratios:
  • Broiler farm: meat per pound of feed 
  • Laying eggs: Eggs per pound of feed 
Let’s look at the different breeds of chickens you can choose for your own poultry business.

Type of Bird

Chicken breed 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
They rate the Leghorn as the best egg-laying chicken and the Cornish Cross as the best for producing fast and plentiful chicken meat production. Look for their awards on sites that educate, breed, or cook chicken. If you see one of them, this means they are a poultry company focused on excellence. Oops! I spent half the blog educating us on the chicken industry. Let’s carry on with how to start a poultry farm in the USA.

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

Hands with magnifying glass looking for house 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"]
  1. Establish how to position everything on your land.
  2. Decide how to make the most of your space.
  3. Build a chicken coop.
  4. Manage your supply chain.
  5. Purchase and care for your chickens.
  6. Process and sell your poultry products.
[/su_note] We’ll look at a few, but I strongly advise checking out the Big Book Project and talking to other poultry farming businesses to learn more about designing a small farm. Acclimating to the setting in person will give you a powerful perspective on chicken farming.

How to start a poultry farm: Build a Chicken Coop

  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: When they built it, the total cost would have been about $220 for the coop and $60 for the gravity water delivery system.  This makes it where they can easily move the chicken coop to different spots on the poultry farm. Watch the video below to view how they built the chicken tractor. [su_youtube url="https://youtu.be/m4qhDGG1C3k?t=1115"] Almanac.com has a good read on how to make a chicken house. They suggest keeping the poultry house near where people are at all times of day so that someone can hear if a fox tries to enter the chicken house. Farm innovations have created intensive poultry housing systems. With automated feeders, watering systems, and other improvements, you can more easily care for your chickens. You’ll have to establish the proper settings for your poultry house because chicken breeds vary on their needs. Learn about some of the best feeding systems.

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.
When you’re just getting started, you can buy feed from Amazon or Walmart, but you may want to buy in bulk. When comparing a 40 to 50 lb bag to a 2,000 lb order, you can save up to $1,000 by buying in bulk based on online pricing.  Check out this blog to learn more about feeding chickens. You’ll want other equipment, too. 

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)
[/su_note] Once you have all the equipment setup, it’s time to find dependable breeders.

Get Your Chickens

Little chickens in a brooder 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:
  1. 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.
  2. 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.
  3. 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.
You can find more breeders and fertile egg suppliers on Chickens and More.

Step 6. How to Run a Chicken Farm

Woman in poultry 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.
Geoff and John use manual processes. They told us: [su_quote]We move the chicken tractors around so their waste fertilizes the land. Every animal plays a role in the ecosystem.[/su_quote]
  • 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.
Author’s note: During my experience in the building automation industry, I found that automated systems make documentation of anything much easier. When you can easily check a log to see when feed was distributed, water consumed, temperatures, and other relevant data, it is much easier to comply with government regulations.

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

Chickens and 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
[/su_note] They'll guide you through the process of how to start a poultry farm for Perdue.

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

People working together on table 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)
[/su_note] Fortunately, John and Geoff gave us a ton of information on what they use to operate their business selling broiler chickens.

How to start a poultry farm: Hiring

Marion Acres, LLC emphasizes two aspects when hiring:
  1. Skill: Do they at least somewhat understand the job?
  2. Personality: Are they fun to be around? Similar values? Work Ethic?
For processing employees, they told us: [su_quote]It's called Poached. I think that attracts more of the food service industry, people that are used to handling knives and processing things, stuff like that. So we use that for the processing facility.[/su_quote] They also explained most other positions are easily filled with walk-ins and “now hiring” signs.

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. Helvetia produce screenshot

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?
Business ideas

Comments

Haret@ 2023-12-03 01:14:16

I really admire how you writer

Sebastian@ 2020-06-22 23:29:12

Buying businesses can be very risky, you just don't know what the future holds. These questions are a great way to evaluate a business and plan for the future ;) Thanks

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