Picture this: the perfect client.
- Every meal you prepare is a hit and they often beg for seconds and thirds.
- They will happily try new things and always leave a clean plate.
- When you find a recipe they like, they will gladly eat it for breakfast, lunch, and dinner.
I know what you’re thinking — this person doesn’t exist! And you might be right.
But that dog does!
If you have a passion for food and a soft spot for animals, why not merge your two favorite things? We’re here to help you get started with a free business plan template and all of the info you need to start your very own pet food business.
8 Steps to Start Your Pet Food Business
1. Follow Requirements for Pet Food Businesses
Baking up a batch of dog or cat treats to share with friends and neighbors is one thing, but producing and selling pet food from your home is far more involved. You need to follow strict requirements to operate safely and legally.
Legal Requirements
Just like human-grade products, pet food and treats are highly regulated for safety and sanitation. Before you start selling your homemade goodies, you need to know and comply with pet food laws.
Whether you prepare your products in your home or rent a commercial kitchen for bulk baking, all pet food and treat businesses must follow the Food and Drug Administration (FDA) and your state’s regulations. This ensures consistency in safety, labeling, and ingredients across the country.
On the federal side, the FDA focuses on the prevention of foodborne diseases through facility inspections and regulating imported foods. States typically enforce animal feed laws and review product labels for compliance and accuracy.
Most government agencies follow the pet feed guidelines set by the Association of American Feed Control Officials (AAFCO). This independent organization helps regulate the sale and distribution of pet food in the US and produces an annual publication covering health and safety requirements.
According to the FDA, there are several steps aspiring pet food business owners need to take before selling their products:
- Submit registration, licensing, and notification information to the FDA
- Comply with food safety regulations
- Ensure ingredients and additives are safe, approved, and clearly labeled
- Follow state and local guidance
In-home businesses need to follow several key requirements to sell pet food:
- Adulteration: Food qualifies as adulterated if it’s contaminated, spoiled, mishandled, or includes unsafe ingredients. Any form of adulteration is prohibited.
- Ingredients and additives: Anything added to or that comes into contact with animal food must be considered Generally Recognized as Safe (GRAS) for pets.
- Labeling and marketing: All foods must follow the Code of Federal Regulations animal food labeling guidelines.
- Qualified facility attestation: Even very small businesses may need to register as a qualified food facility through the FDA.
- Preventative controls for animal food: Specifics can vary, depending on your business, but all pet food businesses must adhere to hazard analysis and risk prevention guidelines.
- Reportable food registry: If the food you produce is contaminated or could otherwise be harmful, you must file a report with the Reportable Food Registry.
- Low-acid canned food regulations: If you produce thermally processed low-acid food (aka, canned food), you must follow the rules for processing and storage.
- Bovine spongiform encephalopathy: If you use meats or byproducts from cattle, sheep, or goats, there are rules for handling and usage you must follow to avoid the spread of “Mad Cow Disease.”
In addition to federal laws, pet food businesses also need to follow the state regulations where they operate. These can vary greatly, so always check your local requirements before you start your business operations.
Business Requirements
In addition to the regulatory requirements for pet treat businesses, you also need to manage the operational side of things. This includes a few essential steps:
- Choose a name: Pick a dog treat business name that speaks to your brand and personality.
- Choose a business structure: Your business structure determines factors like legal liability and how you file taxes.
- Register your business: The guidelines for registering your business vary by state, so check with your local agency.
- Apply for an EIN: An Employer Identification Number (EIN) allows you to keep your business and personal assets separate.
- Open a business bank account: Keeping business income and payments separate from your personal accounts helps with tax filing and tracking profits.
- Get insurance: Protect your investment with pet food manufacturing insurance.
2. Create Your Menu
Designing pet food and treat recipes that are nutritious and compliant with regulations is a tall order. After all, pets typically eat the same things for every meal, so your food needs to cover all of their dietary needs.
To formulate pet food you need to be a trained pet nutritionist. This requires a four-year undergraduate degree in animal sciences, biology, or agricultural science. Most scientists in this field also go on to earn master’s degrees and PhDs.
In addition to education and experience, nutritionists need to keep up-to-date with the latest research and developments in the industry. The American Academy of Veterinary Nutrition offers continuing education options for professionals.
Even if you’re not a certified pet nutritionist, you can still start a pet food business — you just need to collaborate with an expert. Working with a consultant helps ensure your products meet AAFCO standards for pet food safety, nutrition, and labeling. Consulting costs vary depending on the agency and how much assistance you require.
As you develop your menu, consider your target customer and think about the following questions:
- What kind of animals do you want to serve? (e.g., dogs, cats, small house pets)
- Do you want to make pet food, treats, or both?
- How many products can you reasonably produce?
- Do you want to cater to specific needs, like life stages, allergies, and food sensitivities?
- What type of food will you sell? Kibble? Wet food?
- Are you interested in specialty services, like customized recipes or raw diets?
All of these factors will determine what products you produce and sell. Remember that each item you offer will require careful recipe formulation, labeling, and state inspection.
Pro Tip: If you’re not quite ready to tackle the intricacies of formulating pet food, you can start smaller with a homemade cat or dog treat business. While the FDA also regulates treats, they have fewer rules since they aren’t considered a primary source of nutrition.
3. Research Your Target Audience and Competition
Before you go all in on your new homemade dog treat business, you need to make sure your products will sell. Market research can provide tons of valuable information to set you up for success. When conducting your research, look for answers to the following questions:
- Do people want your product? Are there enough customers to sustain your business?
- What is the population of your area? How many of those households have pets?
- What is the average income in your sales area? How much are people willing to spend on pet food and treats?
- Where do customers live? How will they get your products (i.e., retail, pickup, delivery)?
- Are there other businesses like yours in the area? What are their prices?
You can gather this data through surveys, informal interviews, and local demographic sources. If you plan to operate an online business, look into any resources that may be available through your e-commerce partners.
Pro Tip: Join social media groups for pet owners and post a quick survey or questionnaire link to reach a wider audience.
Once you have the information you need, analyze it to better understand how you fit into the current pet food business landscape. Take a close look at your potential customers’ needs and how your business can fill those gaps. Identify your strengths and weaknesses and adjust your plans accordingly.
You should also consider the competition and overall demand. For example, if there are several specialty dog treat businesses in your area, it may be difficult to break in. Or, if your town has low pet ownership rates, you may not have the necessary audience to build a business.
4. Nail Down Your Unique Selling Points
Some of the best (and most frustrating) feedback you can receive is, “So what?”
You have an amazing product. So what?
Your pets love the treats you bake for them. So what?
You use all organic ingredients. So what?
Running a successful food business means showing customers what makes you and your products special. Answer the, “So what?” to make your company stand out and attract new clients.
Use your market research to understand what consumers want and what your competitors are doing. Your business probably already has a lot going for it, so you just need to find a way to leverage its unique and desirable qualities.
Try making a list of descriptors about your products and business. Once you have that list, think about how you could present that information to sound even more appealing or interesting to your clients. You can even take something that may be considered negative and spin it into a selling point. For example:
Home-based pet food business ➡️ Dog treats made with love
All local ingredients ➡️ Straight from the farm to your pet’s plate
Limited production capabilities ➡️ Small-batch food for pampered pets
Factors like these add value to your products and give you an edge over your competitors, highlighting why customers should choose you over the rest.
Integrate these ideas into your marketing materials, on your website, and wherever else customers interact with your business. Even if you don’t make statements like these outright, they should influence your branding and overall tone.
5. Price Your Pet Food Products Strategically
Pricing your pet food products can be tricky. You don’t want to set prices too high and scare off potential customers, but you also shouldn’t underprice your goods and take a loss.
Just like any food business, a strong pricing strategy can ensure you give customers the best deal possible while still turning a profit.
You’ll need to consider several factors when deciding how to price your products:
- Food cost
- Sales
- Operating costs
- Portion size (small versus large breeds)
- Menu variety (special dietary options, life stage formulas)
- Cost per serving
Remember, your prices aren’t set in stone! With the cost of supplies and other expenses constantly changing, it’s important to reevaluate your pricing strategy every 6 to 12 months to ensure adequate profit margins.
6. Build Your Marketing Strategy
The next step in starting a dog treat business is to get your name out there. There are many free and affordable ways to reach new clients and promote your products.
- Create a website: A website is an essential touch point for your clients, providing contact information, product menus, and testimonials. Include your URL on all of your marketing materials, business cards, and emails.
- Get on social media: Create social media accounts using your pet treat business name as a handle. Using Facebook and Instagram to promote your business makes it easy to reach new customers and share your products with the world.
- Print business cards: Business cards are one of the easiest ways to pass on information about your business. You can design and print a box of cards for less than $20 through sites like Canva.
- Connect with other businesses: Network with other businesses to spread the word about your products. Pet stores, groomers, and even bakeries may be open to collaborating or selling your pet treats in their stores.
- Participate in events: Sign up to run a table or booth at events in your community. Craft fairs, festivals, farmers markets, and pet adoption events are great places to connect with pet owners and sell your products.
- Word of mouth: Happy customers turn into more customers. Ask clients to tell their friends and write reviews to help spread the word and reach more pet parents.
7. Protect Your Pet Food Business With Liability Insurance
Operating a business comes with risks, especially when working with people and their pets. Even when you follow all of the regulations and best practices, accidents can happen. Before you set up shop, protect yourself and your business with pet bakery insurance.
Essential coverage like food product liability can save you from paying out of pocket for business-related claims. Here are a few examples of how insurance provides a safety net:
- After selling your entire stock of dog biscuits, you were notified of a recall on the almond flour you used in the recipe. A client’s pet got sick and sued you for their expenses.
- While preparing a large cat food order, you dropped a hot pan on the floor of a rented commercial kitchen, scorching the linoleum.
- A customer tripped and fell in your driveway while picking up an order. They ended up needing surgery to repair a torn ligament in their knee.
In each of these scenarios, the policyholder’s insurance helped pay for big expenses like medical bills, repair costs, and legal fees.
If your business branches out beyond pet food and treats, you may need additional coverage to ensure you have the protection you need. For example, pet care business insurance covers daily operations for people like dog walkers and pet groomers. But, if the owner also wants to sell homemade pet treats, they need to have pet food insurance, too.
8. Take the Time to Create a Pet Treat Business Plan
With all of your research and brainstorming done, it’s time to lay out your business plan. This is beneficial for your business in several ways:
- Allows you to set goals and visualize a clear path toward them
- Helps secure funding from investors and lenders
- Reveals potential challenges and opportunities so you can be proactive
- Creates perspective on how to develop and scale your business
- Offers a clear and polished breakdown that you can share with potential stakeholders
- Lays out benchmarks for success
Having a clear-cut business plan sets you up for success by outlining the most important details in one well-organized place. It should make you think about your business from every angle and fill in gaps that you may not have considered.
Every business is different, so there’s no one way to design your plan. However, there are a few key elements that you should address:
- Executive summary
- Company description
- Market analysis
- Marketing strategy
- Loans and financing
- Operation costs and financial projections
- Certificate of Insurance (COI)
Ready to get started? We’re here to help with a customizable pet food business plan template!
Start a Successful Pet Food Business That'll Make Tails Wag
Getting the ball rolling on your pet food business requires plenty of hard work and planning, but any animal lover will tell you it’s worth it. With some quality research and a willingness to learn, you can create a winning business plan that will set you up for success.
FAQs About Starting a Pet Treat Business
Fresh ingredients from a trustworthy source are always ideal for pet food. If you have a smaller operation, you may be able to purchase most or all of your ingredients from your local grocery store, butcher, or farm. You can also purchase specially formulated, regulatory-compliant ingredients through online pet ingredient suppliers.
Market research and business planning ~ $500
Business registration and licenses ~ $100
Product and formulation development ~ $1,000
Ingredients and supplies ~ $2,000
Equipment and packaging ~ $5,000
Marketing ~ $500
Insurance ~ $300
Your actual expenses can vary depending on where you live, the extent of your menu, and your intended output.
All pet food businesses should follow the AAFCO guidelines for labeling standards and safe distribution. Both state and federal government agencies observe this guidance. Since pet food labeling is strictly regulated, it’s important to adhere to these criteria.
New pet food businesses can face several challenges when first starting out, such as:
- Start-up costs
- Food and treat formulation
- Fulfilling FDA and state requirements
- Building a customer base
- Earning client trust
Developing a strong business plan can help you anticipate these concerns and develop solutions.
