Is this a hot investment with big returns? You decide.
Co-founders of Chester’s Choice, LLC Jim and Alexis Nelson believe they’re onto something. We recently sat down with Jim at his home office to talk with him about their new venture. Jim says the hot investment with big returns today is the pet product industry. The healthy foods and treats are a particularly smart way to make money.
Their mission is to “Capture the majority of the gourmet dog biscuit industry in a quick and efficient manner.”
Admittedly, Jim and Alexis have done their homework regarding the particularly hot market that is the pet product industry today. Their niche, a healthy dog biscuit and an online option of special orders for dogs with special needs, seems to be a good one. “The pet product industry has jumped up about $3 billion per year for the last several years to $41 billion in 2007. Healthy foods and treats are one of the hottest areas. We don’t need a very big slice of that pie to be damn successful," Jim says.
The Chester’s Choice plan, is it realistic? “It’s a given that healthy pet foods and treats is a hot market, a hot investment with big returns. Can we compete? Since that tainted gluten and melamine from China thing happened, big companies have made a weak effort to act like they care about people’s pets. Cute commercials and pretty packaging showing vegetables and meat is about it. It seams more like saving face than caring. They’re not in the same league when it comes to a healthy, quality product. Some small businesses are making good products but their marketing, packaging, image and SEO are totally inferior. They seem to have the pets in mind but not the business. We’ll smoke past them like they’re standing still,” says the confident founder.
Are you guys qualified to build what you’re trying to build? Pushing aside a stack of business magazines and clicking out of a program on his computer, Jim says, “We are smart enough to know what we don’t know. We have years of valuable experience in production and accounting as well as success building residential construction, real estate and mortgage businesses. That said, we’ve gone to great lengths to surround ourselves with exceptionally talented people in virtually all of the areas of this business. Our confidence is sky high.”
Where do you see yourself in five years? “You read through our website. Kinda says it all. Making the best dog biscuits, making lots of money and having fun doing it!”
Confidence, a hot market, an untapped niche, does it equal big returns?
Whether you want to buy a franchise or do it yourself, check out 7 hot markets that can make you a millionaire.
Pampered Pets
If you’re a pet lover, consider getting into the fast-growing pet products and services industry.Pets are a part of the family in 63 percent of U.S. households. In fact, in 2006, Americans spent $38.5 Bullion on pet products and services a figure expected to rise to over $40 billion in 2007, according to the American Pet Product Manufacturers Association. Traditional pet lovers might consider a pet franchise business like pet grooming, pet products, pet walking or training. In fact, in our 2007 Franchise 500, the number of pet-related franchise units grew 23 present from 2005 to 2006. There are many niches in which to start your profitable pet business, according to APPMA president Bob Vetere. Natural and organic pet food is a particularly hot area, he notes. Much like in the human world, where green products are all the rage, green pet products are quickly gaining in popularity. "Any trend you see in human foods, about six months later, it pops up on the pet food side of the ledger," says Vetere. "This is what's happening with organics and naturals. It's finally dawned on marketers that the same person who's buying food for the family is buying food for the pet." Convenience products are heating up as well-from automatic feeding devices and timed watering devices to automatic pet doors-anything that allows owners to have a busy lifestyle while still taking care of their pets is hot, notes Vetere. On the same convenience trend, consider pet services-pooper scoopers, for instance to do the dirty work that many pet owners would rather pay someone else to do. And just as mom buy top-notch products for their children, many pet owners are all about luxury for their precious pets. If it's high-end or a treat, pet parents will want it. That's what Janet McCulley, 39 and Georgia Goldberg, 44 found when they started Muttropolis, a chain of upscale pet boutiques based in Solana Beach, California. Jane McCulley, a proud pet parent herself she wasn't alone in wanting to pamper her dogs Lulu, Spia and Zoltan, knew she wasn't alone in wanting to pamper her dogs. She researched the market and opened the doors to her first store in 2002; four more locations and online store (muttropolis.com) have followed. McCulley describes the business as "retail meets the dog park." Aside from offering upscale products such as Swarovski crystal dog collars and eco-friendly chew toys, McCulley designed special fixtures in her stores to appeal to the discerning pet lover. Photographic tiles on the ground look like grass, a fountain in the center is full of dog toys, and tree graphics on the wall complete the look. Winning the "Hottest Retail Concept of 2006" award from the International Council of Shopping Centers was a coup, but it's at the monthly Mutt Meet-Up events, where owners bring in their pet for fun and mingling, that McCulley sees the fruits of her success. "We have crated a brand that resonates emotionally with the pet parent," she says. With 2007 sales projected at more than $4.5 million and plans to open 150 more locations within the next five years, Muttropolis is sure to become a household name among the two-and four legged alike.
by Recent Article in Start Your Own Business Magazine
DOGGONE FORTUNE!
Small bakery for dogs goes paw-to-paw with the big chains and bites off $5 million a year in sales!
A Walk down the pet food aisle of grocery stores around the country five years ago found the shelf space dominated exclusively by multinational corporations. They are still there, but now they are being joined by smaller companies like Blue Dog Bakery, a company that offers premium, all-natural low-fat dog treats. Blue Dog Bakery, a woman-owned business in an industry run mostly by male executives, has landed their healthy alternatives on the same shelves by carving out a premium natural niche and through a dogged focus on mass mainstream distribution. In response to her concern about the poor quality of ingredients in most pet foods, the alarming increase in dog obesity and the lack of healthy alternatives on grocery pet shelves Margot Kenly left a successful career in the gourmet food industry in 1998 to start Blue Dog Bakery. Her company's dog treats are the first all-natural, premium, low-fat dog treats to be nationally distributed in chain grocery, large specialty pet, and national natural food stores. "Much like the rapid growth of natural products for people, there is growing concern about the health and nutrition of animal companions,"notes Margot Kenly, President and Founder of Blue Dog Bakery. "We have heard form almost 50,000 customers who appreciate the fact that all of our products are made with the highest quality human-grade bakery ingredients and are free of animal byproducts, preservatives, additives and artificial flavors and colors, " adds Kenly. Natural pet food is an emerging trend that fetched more thatn $524 million in 2004. Blue Dog Bakery is a part of a small but fast-growing niche of the overall pet supplies market, which is projected to hit $35.9 billion for 2005. According to the American Pet Products Manufacturers Associations (APPMA), the main factor contributing to sales growth in the pet product industry is pet owners' demand for premium products in both food and supplies. Blue Dog Bakery sales are $5 million per year.
In a rough economy people search for the smart place to put their money. Real Estate is down across the country. Interest rates are up. The stock market is down and unpredictable. So where is the great investment? What is the hot market?
How about a market that has gone from a $35 billion industry in 2005 to $38.5 billion in 2006 and up to $41 billion in 2007. What if these numbers represented just the U.S. share of this huge money maker? What if other countries such as China, Japan and Australia were as hot or hotter? What if the big corporations weren't capitalizing on it and the small businesses were doing it all wrong? Would this be a great investment with potential for big returns?
Well this is much of the pet product industry today. "Natural and organic pet food is a particularly hot area." According to American Pet Product Association President, Bob Vetere, Entrepreneur magazine Sept. 2007 titled 7 hot businesses that can make you rich!
It seems that the hot investment with big returns would be with a start-up company that had drive, a vision, a unique niche and a huge untapped market.
"Healthy dog food and treats are what people want right now. Dog food and treats make up about $10 billion of the pet product industry and it's the area we are focusing on" Says Jim Nelson, cofounder of Chester's Choice, LLC a start-up, dog biscuit company who’s mission is "To capture the majority of the gourmet dog biscuit market in a quick and efficient manor."
"Our niche is not just healthy but special order biscuits for dogs with special needs. People are having trouble finding foods and treats for their pets with special needs. Some special needs would be pets with diabetes, heart problems, allergies, things like that.
Jim's plan for Chester's Choice, LLC is to cater to the growing numbers of caring pet owners who are pampering their pets like never before. "We see there is desire for a product like ours in an industry where doggy daycare, pet boutiques, high-end pet jewelry and pet salons are hot businesses. You can view the Chester's Choice business plan at www.chesterschoice.com.
The pet product industry is definitely one of the hot investments right now. Smart investors from the smaller, several thousand dollar investor to the bigger angel investors are viewing these businesses as the smart way to make money. Potential for big returns in a burgeoning, thriving market has these investors seeing dollar signs.
It can be challenging, however, to find a way to get your money into this industry. Big corporations don't need your money and many start-ups aren't willing to share in the spoils. Watch closely for opportunities and get while the getting is good!
