How to Start a Pet Transportation Business
Pet Transportation Services are needed as the number of pets in the U.S. has grown tremendously over the past few decades. According to the U.S. Pet ownership and Demographics sourcebook, there are an estimated 60 million dogs and 70 million cats in American homes today. Apart from that, households which own pets have been recorded to spend 36% more in 2001 as compared to 1996. With this, owning a business that caters to the pet market, including a pet transportation service has lots of potential for healthy growth.
This is due to the fact that many Americans move around the country yearly and thus would require pet transportation services to move their pets as well. On a smaller scale, pet transportation services can also cater for local residents who require these services to transport their pets to and from the vet, within a local area or even to the crematorium for pets which have died.
Start Up Costs and Financing Sources:
Starting a pet transportation business really depends on the scale that you want your business to be. If you want to start on a smaller scale, all you really need is probably a pickup truck that has been modified to be safe and suitable for the transport of animals. Of course, you will need to set up an office or operate from your home with just a telephone, email and a fax machine. All of these will cost you less than $20,000.
On a larger scale, especially when you are considering cross border transportation, you will probably need to invest on a larger truck that can accommodate a few pets at the same time. Apart from that, the insides of the truck will need to be made suitable, safe and clean for pets, with adequate ventilation and cleaning facilities. In order to make this business viable, you may need to quickly pet transport perth to sydney expand your business to include sales agent offices in various locations. This way, you can build up business volume in order to increase profitability. All of these may cost you anywhere from $200,000 to $500,000 in initial start up costs.
Financing can be obtained from investors who may be interested in the potentials of such a business. Other than that, lending institutions such as banks can be approached to obtain a loan for the business. As with any business start-up, an impressive business plan must be developed for potential investors and financiers, indicating the potential growth as well as the estimated annual costs and revenue of the business.
Pricing Guidelines for Service:
The pricing strategy for a pet transportation service business fluctuates based on the fixed and variable cost of the business, as well as the nature of the service provided. Local transportation services may start with a minimum charge of $20 to $40 for the first 20 miles and an additional $10 for every 10 miles after that.
As for interstate transportation or transportation between cities, the distance between the origin and the destination will be the major price determinant. With this, prices may range from $100 and up, depending also on the size of the animal and the pet carrier.