If you want to scale your dog treat business to get an idea of the time involved in building a successful one, then you should expect to treat it as a full-time business – at least until you get established.
Realistically, you’ll be working anywhere from 30 to 40+ hours weekly, including weekends, to build up a steady clientele.
This will involve local venues such as flea markets and farmer’s markets, as well as online sales and social media videos to generate attention – it all depends on your business model and how aggressively you want to go.
Once you’ve got the clients, however, it gets easier as you can stock your product and schedule your baking times and the occasional venues to get new clients – just expect a lot of work in the beginning!
Today we’ve collected some of the questions trending the most this week about scaling and how it applies to your dog treats business. Read on to learn more about what scaling is and what it can do for you!
Table of Contents
- What is a scaling strategy for a dog treat business?
- When should you scale your dog treat business?
- What does upscaling a dog treat business entail?
- How do you know if your dog treat business is scaled?
- How do you Upscale a dog treat business?
- What is the difference between a startup and a scale up?
- How scalable is your business model?
- Are all businesses scalable?
- How do you scale a startup dog treat business?
- What are some of the benefits that a company would get from scaling?
- How do you sell dog treats legally?
- Can I really make dog treats and sell them?
- How much does it cost to manufacture dog treats?
- What is the profit margin on dog treats?
- Are dog treats in demand?
- How do you package dog treats?
- How do you label pet treats?
- Do dog treats need to be made in a commercial kitchen?
- Do dog treats need a nutrition label?
- Are dog treats taxable?
What is a scaling strategy for a dog treat business?
A scaling strategy is simply a stepping-stone outline that takes you from where your business is now to where you want it to be. Let’s say that you are currently just selling your treats online to Canada and to local businesses.
With a scaling strategy, you might consider licensing yourself in a new state or country every month, with the goal of increasing your brand recognition and your areas-served slowly. You could also start join Facebook groups in those areas as you slowly expand, while also researching which expansion options will cost the most or the least.
Basically, you set a goal, and then you make a list of smaller goals that will get you there, which you follow on a schedule that leads to your success. Most of all, however, a ‘scaled’ business is one working at full capacity and not turning down lucrative contracts and opportunities simply because the business is not ready.
When should you scale your dog treat business?
Good times to scale your business include periods of extra cash flow, meeting and beating current goals, and especially when you are having to turn down business because you don’t service a particular area yet.
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These are all opportunities for business growth and signal that it’s time you sat down and planned for the future.
What does upscaling a dog treat business entail?
Essentially, upscaling requires taking your current business model and adapting it for a higher volume of business.
This can be done in many ways, such as advertising to areas you are about to expand to, contacting vendors in that area, assessing shipping costs and pet treat revenue for certain regions… it’s all about preparing for new and expanded business and creating a scheduled roadmap to get there.
How do you know if your dog treat business is scaled?
Your business is scaled when you can take current profits, as compared to current operating costs, and you find that generating new revenue costs fewer or simply negligible changes to your current business model.
When this happens, congratulations – your dog treat business is perfectly scaled for your current level of goals.
How do you Upscale a dog treat business?
Examples of ways you can upscale your dog treat business include finding cheaper suppliers for quality materials, discounted shipping options that cover the geographic regions that you need, unique treat formulas, and social media saturation – just to name a few examples.
It’s all about growing the business so that you can reach the markets you want to reach with very little cost and effort on your part.
What is the difference between a startup and a scale up?
A startup business is just a business at it’s very beginning. You are still testing your business model and changing it to meet your growing needs and it’s still a bit of trial and error. A scale up, by contrast, is just a startup business that has proved to have a sound business model and is moving on to the next stage of expansion.
How scalable is your business model?
Your business is considered to be scalable when it is flexible in your expansion options – to the point that simply increasing your supplies and distribution is an automatic recipe for more revenue.
This is an indication that your current business model is sound enough to thrive in any environment and thus ripe for expansion to take advantage of this.
Are all businesses scalable?
Some businesses are not really scalable beyond franchising. Examples include engineering, consulting, or even dog grooming where the main money-drive is based on input or service from individuals in high demand for their unique skills.
Your business is scalable when your resources and reach are able to make a direct difference in profits at very little cost beyond planning and said expansion.
How do you scale a startup dog treat business?
Scaling your dog treat business is all about increasing your reach and cutting your costs. Examples of what you might do include the following:
- Obtain licensing for new marketing areas
- Increase brand recognition through social media such as Facebook groups for these and current regions
- Automating or outsourcing certain aspects of production to lower costs and free up your own time for growing the business
- Working to make your business self-sufficient when you aren’t there
- Consistently evaluating new supply options for cheaper and better raw materials for your treats
These are just a few examples, but they give you a good idea of how to get started properly scaling your business towards future success.
What are some of the benefits that a company would get from scaling?
The benefits of scaling are self-explanatory for the most part, but in a nutshell scaling a business helps to increase revenue appreciably at very little cost and also helps to expand the business in exactly the ways that you want to.
By outsourcing and reducing costs in other ways, you eventually have a successful business that brings you a predictable amount of profit and doesn’t require that you have to watch and micromanage it – it’s grown enough to run on it’s own!
How do you sell dog treats legally?
Selling dog treats legally is going to require that you have a license to sell in our own state, as well as any state that you intend to do online business with. Getting started, you might consider simply marketing to Canada.
Canadian law will allow you to ship your dog treats to customers there, provided that you are legally registered and licensed for business in your home location.
This will let you get started quickly and after you build up enough capital, you can hire a lawyer to help you sort out licensing (and sometimes special labelling) requirements for the states where you wish to do business.
Can I really make dog treats and sell them?
Yes, you can definitely market your own dog treats, you’ll just need to make sure that you are licensed for your own state and any that you will do business in, and you need to follow FDA regulations.
While they won’t have to pre-approve our product, it still needs to be safe to eat (ie no harmful substances), prepared in sanitary conditions, and your ingredients list needs to be 100% honest.
How much does it cost to manufacture dog treats?
Generally, a recipe isn’t going to cost you more than 10$ to make, and simpler recipes could be as cheap as 5$ per batch. 2-component treats, for instance, might involve little more than baby food and flour.
It’s all up to you, but remember that there is a lot of competition out there so you want to offer something fairly unique to go with the ‘stock’ offerings, as this will attract more customers to try the ‘exotic’ treats, as well as to sample your ‘take’ on the standard treats they already stock up on.
What is the profit margin on dog treats?
You want to target a minimum profit range of 30%, though most online and local dog treat vendors will target 40% to 45% profit, on average. This will be your take-home after venue rent, website maintenance, raw supplies, and other little fees that are considered ‘the cost of doing business’.
Remember, buying bulk and freezing materials can cut off a lot of cost and be sure to invest in a vacuum sealer. It helps to ensure that your treats are in good shape when your client gets them and also helps you to build up some stock in advance.
Are dog treats in demand?
Yes, dog treats are in demand and that is not something that is going to change anytime soon. An estimate 68 to 70% of American households have pets and people love their animals, so they are alwas on the lookout for toys and treats.
If you advertise our treats on social media, local flyers, and as many other ways as you can, people will notice and take a look at what you have to offer. After that, if your dog treats are well-loved, you can make a pretty penny selling your wares!
How do you package dog treats?
Packaging your dog treats can be done on the cheap. Just buy a bunch of paper bags and have a stamp made with your company logo, name, and address so that you may stamp the front of these bags in advance.
Print up your ingredients labels to place on the back and when you get an order, put the vacuum sealed treat bag inside, fold the top, and ship it out.
Your treats will go out looking humble, but professional, and you can always upgrade your packaging down the line with stickers and other personal touches to endear your products to your customers.
How do you label pet treats?
When you are labelling your dog treats, there are some ‘hard and fast’ basics that you’ll want to include. Make sure that your labels have the following information at the bare minimum:
- The name of your product
- A clear statement of the intended consumer (for instance ‘treats for dogs’)
- Net weight
- Accurate ingredient list
- Nutritional content per serving amount (optional, but you’ll sell more with this)
- Any special feeding directions or recommendations
Do dog treats need to be made in a commercial kitchen?
Usually, no, as commercial, licensed kitchens are generally only required with food intended for human consumption.
That said, the problem is that the requirements are decided by each individual state or selling medium, so some states and online vendors MAY actually require it – you’ll need to do your homework in advance in order to verify before selling there.
Do dog treats need a nutrition label?
Technically, any product that is labelled as a snack, treat, or s supplement is not required to have nutritional information listed – but you really should take the time to determine this information and to list it.
People view their pets as their furry children, and if you can’t include the nutrition information on your product then this is going to alienate a lot of your potential clientele. So, while your treats don’t really NEED a nutrition label, you really should include one.
Are dog treats taxable?
Taxation is a gray area when it comes to pet foods and treats. For instance, in Florida, human food isn’t taxed but dog foods and treats definitely are. In California, the IRS went after a supplied of animal food products for about 8 years of back taxes, but actually lost their case as a judge determined the items were non-taxable.
For reasons such as these, it’s best to hire a lawyer to help you to sort things out, or keep your initial vending strategy simple by just marketing to Canada or other specific markets where a lot of extra research and additional licensing will not be required.