How to Start Up a Dog Basket Business

Although the cottage industry sector can be a competitive arena, a dog basket business fills a niche in a growing market. According to Bloomberg Businessweek, Americans spend about $41 billion per year on their pets. Customers who choose to purchase dog baskets from a small business owner, rather than a pet supply chain store, often do so because they enjoy the personalized shopping experience. Capitalize on this by going that proverbial extra mile for every customer. Consider offering special options, like paw-print gift packaging or embroidering the dog's name on the basket liner.

• 1

  Create a sales plan. Calculate the cost of all materials and tools required to make each dog basket. Factor in how long it takes to make one, so that you can pay yourself an hourly wage for your labor. Research the competition to see what comparable dog baskets cost the consumer. Budget for related expenses such as branding, advertising, packaging and shipping. "Entrepreneur" website recommends adding 30 percent to your projected expenses and subtracting 50 percent from your projected revenue for a comfortable margin of error.

• 2

  Build up your inventory. Make enough dog baskets to have a comfortable cushion in the event of a sales rush, but not so many that you take a major loss on unsold inventory. Consider varying your product to appeal to a wider market. For example, you could make baskets in different sizes with different fabric linings.

• 3

  Locate selling venues. Decide whether you want to sell online, in brick-and-mortar retail stores, or a combination of both. Keep in mind that if you sell directly to the consumer online, your price point may be different than when selling through a retailer, because of the commission percentage. Several online selling platforms allow vendors to set up virtual shops. These sites may charge a flat monthly fee, a per-item listing fee, a percentage of the sales fee, or a combination of fees. You can also start your own website to avoid these fees, but you will need to factor website startup, tools and maintenance costs into your budget.

• 4

  Brand your products. Choose a name for your company, making sure that the name is not already trademarked. Create a tagline that gives potential customers information about your company in a handful of words while avoiding empty phrases. According to the "Small Business Delivered" website, the biggest tagline mistake is stating something like "We're more than just a dog basket company." Not only is this vague and potentially puzzling to customers, it sounds as though you are apologizing for being "just a dog basket company."

  Branding also involves the visual aspects of your business. Create a logo and use it as often as possible -- on business cards, websites, packaging and anywhere else customers and potential customers will see your product.

• 5

  Advertise your products. Take advantage of free advertising opportunities, such as social networking sites, but keep in mind that relying solely on free advertising may drive little traffic to your shop. Advertise in places that your target audience -- dog owners -- are sure to look. Ask local veterinary offices and dog groomers if you can display posters or leave out business cards. Consider purchasing ad space on blogs and websites that cater to dog owners.