Starting an Aquarium Business

Sunday, July 7, 2013

Starting an Aquarium Business

An aquarium business provides two services to private aquarium owners. Aquarium retail stores stock many varieties of home aquariums and supplies, along with a varied stock of freshwater and saltwater fish. Aquarium staff provides system start up and maintenance advice. Aquarium stores also service a non-hobbyist aquarium market. These customers include homeowners with no time or desire to maintain an aquarium, as well as professional offices with decorative aquariums. Aquarium store staff regularly stock, clean and maintain aquariums for these customers.

Step 1

Structure your aquarium business. Determine a business structure with assistance from a Certified Public Accountant familiar with pet-related businesses. Consult with a commercial insurance agent with similar background and liability experience. Obtain a business license at your city or county clerk’s office, and ask about required permits. Call your state department of revenue about a sales tax license. Contact your state department of agriculture about your need for a live fish license.

Step 2

Select a visible and accessible location. Find a location easily reached by main roads, and with good access and customer parking. Obtain written zoning approval before you sign a lease. Work with a sign-making company to create descriptive building signage that includes colorful fish graphics.

Step 3

Identify your aquarium business competitors. Locate other aquarium retail stores within an hour’s drive. Competitors include big box stores with small fish departments and basic aquarium supplies, as well as pet stores with expanded tropical fish selections and more aquarium models. Visit each store anonymously, and notice general product selection and aquarium cleanliness. Observe staff knowledge and customer interactions as well.

Step 4

Determine your aquarium products and services. Design a quality aquarium store that offers systems for every knowledge level and price. Compile basic equipment and supply packages, plus add-ons, such as extra tank scenery and higher-priced fish. Include larger systems for offices and upscale residences. Identify unmet needs your store can fill. For example, decorative aquariums may be popular nationwide, but these aquariums may not be locally available. Develop prices for aquarium maintenance services as well.

Step 5

Order your aquarium equipment and supplies. Compile an equipment list that includes varied sizes of aquariums, filters, chemicals and other maintenance supplies. Add tank environment items, such as faux coral and plants. Select decorative units such as table aquariums and water columns as well. Order your products from a wholesale source to maximize your profit. Order your fish species from a well-stocked supplier with fast turnaround time. Include popular freshwater and saltwater aquarium fish, as well as new species of interest.

Step 6

Hire aquarium-savvy sales and maintenance staff. Find local fish enthusiasts and hobbyists through marine aquarium clubs (See Resources). Contact high school biology club advisers and college biology department heads. Ask instructors to recommend students who are knowledgeable about aquarium operation. Place newspaper ads for staff with marine biology expertise and good customer service skills.

Step 7

Host a tropical fish-themed open house. Invite your customers to enjoy an undersea environment complete with faux corals and sea fans. Display portable aquariums throughout the store, and showcase larger aquariums in operation. Schedule fish care experts to speak on new aquarium species and equipment trends. Conduct hourly product giveaways, and utilize names for a mailing list. Offer introductory discounts on full aquarium systems. Advertise the event in newspapers’ community sections. Distribute fliers to school science clubs, marine aquarium clubs and upscale offices.

Things Needed

References (4)

Resources (4)

About the Author

Based in North Carolina, Felicia Greene has written professionally since 1986. Greene edited sailing-related newsletters and designed marketing programs for the New Bern, N.C. "Sun Journal" and New Bern Habitat ReStore. She earned a Bachelor of Science in business administration from the University of Baltimore.

Photo Credits (3)

2 comments:

Aquarium BusinessMarch 1, 2014 at 6:52 PM
Aquarium, Aquarium Business, Starting an Aquarium Business
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Jim VaccaroMarch 3, 2014 at 4:06 AM
As a business broker I've listed a similar business. If you want it to maximize the future value of the business, I would suggest the owner concentrate on marketing and hire competent staff ASAP. Customers are easily identifyabble and competition is limited.
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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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Sunday, July 7, 2013