cost of starting an lfs
- Thread starter sikoko
- Start date
If your good with money, and good with pluming/construction you could easily set up a shop for under 10k alsong as you knew breeders and suppliers.
Depends on location and what all you have now. Store space would be close to 2Gs per month if not more depending on your size. Then you will need to pay an initial payment to insurance and thus you should budget a few grand for that. You will need utility money which could easily be 750+ depending on the number of things you are powering in te store and how often you are changing water.
You could probably get away with a basic cell plan to save costs.
A solid 5-10K just for dry stock (again this is for fairly bare bones so this cost goes up the more you need for the store)
Another 5K for rental space renovation for shelving, plumbing, hooks, camera unit, ect.
Then you have tanks, livestock, your own food and chemicals, your own pay ect. You will need to get a cash register, register with credit card companies for a processing machine, store sign, advertising, and such.
While you could potentially open the store and be extremely barebones for 10-20K you would make a poor first impression on potential clients. You should budget more along the lines of 30-50K to open the shop and have some money set aside for incidentals that come in opening the store (such as extra plumbing costs, contracter issues, stock deaths, ect)
Any time you open a busniness you should also have enough money to float yourself for an entire year without making any money. So you would have to know you recurring costs, salaries, and more to know what you need to keep running monthly and have enough for 12 months in the bank. Most companies run in the red in their first year till they build a client base and gain the environment knowledge they need to remain open.
You could probably get away with a basic cell plan to save costs.
A solid 5-10K just for dry stock (again this is for fairly bare bones so this cost goes up the more you need for the store)
Another 5K for rental space renovation for shelving, plumbing, hooks, camera unit, ect.
Then you have tanks, livestock, your own food and chemicals, your own pay ect. You will need to get a cash register, register with credit card companies for a processing machine, store sign, advertising, and such.
While you could potentially open the store and be extremely barebones for 10-20K you would make a poor first impression on potential clients. You should budget more along the lines of 30-50K to open the shop and have some money set aside for incidentals that come in opening the store (such as extra plumbing costs, contracter issues, stock deaths, ect)
Any time you open a busniness you should also have enough money to float yourself for an entire year without making any money. So you would have to know you recurring costs, salaries, and more to know what you need to keep running monthly and have enough for 12 months in the bank. Most companies run in the red in their first year till they build a client base and gain the environment knowledge they need to remain open.
There was a shop for sale here not too long ago, 12k, just inherit contacts and take over the business as is
Buying an existing business is always cheaper since they have taken the initial depreciation on stock and materials but you have to go through their books to ensure you are not stepping into a money put
http://www.aquariumadventure.com/
check out this site if you have the money they will help youwith everything even training employees...
check out this site if you have the money they will help youwith everything even training employees...
You should work in a local fish store that is actually doing well and see what it is all about. There is so much to learn in terms of the products and livestock. By working there, you will understand the daily operation that is required to make it. Keeping fish maybe a hobby to you, but business is business. You want to learn from the best and make it better. Base on my understanding, the cost of heating and running the pumps in an average sized store will cost $2 to 4k a month. That is in addition to rent, payroll, taxes, water, theft, insurance, and dead fishes. A pet shop is not a simple business like most businesses. Good Luck in your venture.
Unless you have unlimited $$$$$ where opening an LFS would be more of a hobby than a money-making endeavor, you had better seriously consider all costs. All the LFSs in my area have closed down, with the exception of one. The owner worked there 7 days a week, and the shop was closed only when he had to pick up fish. He couldn't afford to hire help. He could not take vacations. After struggling for a long time, he finally sold out. The place now seems to be run by a family who have branched into hamsters, birds and snakes. The fish section is minimal. I've never seen any customers in there when I've gone in to check things out.
Even if you had the money to buy all the stock and setup equipment, you need to figure out what your monthly expenses will be, including your salary and restocking. Then figure out what you need to make in sales every day to meet your costs.
With todays economy, starting any business has a lot of risks. Starting an LFS is just risky business. It seems to me, that LFSs make most of their money selling fish keeping products, not so much by selling fish. As a fish keeper, I never think, "I'm going to buy this marked up item from the LFS to support him and keep him in business". When I need something, I go online and buy from the vendor with the best (lowest) price. The bottom line is that LFSs cannot compete with big online vendors. LFSs probably make the most money off newbie fish keepers, selling them complete set ups. How many of us would order a 300 gallon tank through an LFS? If an established fish keeper has excellent water parameters in his/her tank, how often are their fishing dying and needing replacement? How often are they buying new tanks and needing more fish? I personally like to check out fish, but I'm not interested in buying any.
As the economy worsens, discretionary spending will decrease. Fish keepers will down size, not expand. If a person has unlimited resources and can keep dumping his money into his LFS (as a hobby), it could be a lot of fun. If a person needs to earn a living from his LFS business, it would probably be a nightmarish headache.
Even if you had the money to buy all the stock and setup equipment, you need to figure out what your monthly expenses will be, including your salary and restocking. Then figure out what you need to make in sales every day to meet your costs.
With todays economy, starting any business has a lot of risks. Starting an LFS is just risky business. It seems to me, that LFSs make most of their money selling fish keeping products, not so much by selling fish. As a fish keeper, I never think, "I'm going to buy this marked up item from the LFS to support him and keep him in business". When I need something, I go online and buy from the vendor with the best (lowest) price. The bottom line is that LFSs cannot compete with big online vendors. LFSs probably make the most money off newbie fish keepers, selling them complete set ups. How many of us would order a 300 gallon tank through an LFS? If an established fish keeper has excellent water parameters in his/her tank, how often are their fishing dying and needing replacement? How often are they buying new tanks and needing more fish? I personally like to check out fish, but I'm not interested in buying any.
As the economy worsens, discretionary spending will decrease. Fish keepers will down size, not expand. If a person has unlimited resources and can keep dumping his money into his LFS (as a hobby), it could be a lot of fun. If a person needs to earn a living from his LFS business, it would probably be a nightmarish headache.