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Business Plan

In: Business and Management

Submitted By jll4781
Words 10505
Pages 43
Plan Outline
Executive Summary Goals Mission Keys to Success
Company Summary Company Summary Company Ownership Start-up Summary Company Locations and Facilities Legal Considerations
Products and Services Products and Services Product and Service Description Competitive Comparison Fulfillment
Technology
Market Analysis Summary Market Analysis Summary Target market Target Market Segment Strategy Market Needs
Market trends Market growth Service Business Analysis Business Participants
Strategy and Implementation Summary Competitive edge
Marketing strategy Positioning statements Promotion strategy Sales strategy,
Sales forecast
Management Summary Management team,
Personnel plan
Financial Plan Break even analysis
Projected profit and loss Projected cash flow Projected balance sheet
Executive Summary
Executive Summary
The shift of dogs from the role of a pet to valuable member of the family, has resulted in the emergence of a booming pet industry market. One of the most profitable and popular businesses to be born out of the shift in society is Dog Daycare. At PAWS Dog Daycare we specialize in caring for dogs while there owners are at work, or have other commitments that would force their dog to be left home alone. We are dedicated to giving the pets in our care a fun filled day, of emotional and mental stimulation, and providing the owners with the peace of mind that their pet is receiving the utmost in personal care and attention while they are participating in activities at our facility. Our strong commitment to customer satisfaction is demonstrated in the professionalism and knowledge of our staff and our interactions with the animals in our care.
PAWS Dog Daycare is a new business with one major goal, and that is to provide the utmost in quality pet care and pampering. It is our job to insure that every dog entering our facility and participating in services that we provide is not only happy, but in a safe, secure and structured environment. We provide the social interaction that a dog needs, the kind of social interaction that owners are unable to provide due to work, or other commitments.
Our dedication to superior service and quality pet care combined with our drive to bring Dog Daycare into the mainstream of society leads us to have three main business objectives:
2.
and
Expand PAWS Dog Daycare both locally and nationally with steady management proven business principles Be recognized as the premiere pet service facility in Florida.
3. knowledgeable
Provide solid customer service and deliver quality pet care through our staff, and modern facilities.
Our keys to success will be providing superior pet care, competitive pricing, and excellent customer service.
PAWS Dog Daycare is currently located in Port Charlotte, Florida. We will start operations with a staff of three working full time, with goals of opening a second and third store in our two neighboring communities of Punta Gorda and Englewood within the next 5 years. The company is established in a commercial location on a major traffic thoroughfare having a daily vehicle count in excess of 56,000. PAWS Dog Daycare is established as a limited liability company under the name PAWS LLC. It is our intent to increase sales and our client base by no less than 15% month over month during the first year through a solid customer service and the additional of additional pet related services to complement our business. PAWS Dog Daycare provides a community service by fostering animals for both the Englewood Animal Rescue League (E.A.R.S.) and the Animal Welfare league at no charge. We have also intend to continue our relationship with the Charlotte County Human Resources Division which provides assistance to disabled seniors that are unable to provide for themselves. The service that we will provide for them is the transportation of the animals owned by these seniors to and from veterinary facilities to receive vaccinations.
The business owner will also serve as manager of daily operations and will require a staff of two to assist in the effective operation of the business. The owner of PAWS Dog Daycare has a successful history not just in the pet industry but in business as a whole. A nine year veteran of the United States Marine Corps, a successful dog trainer in the local area, and a successful real estate investor. The owner will personally provide all of the necessary start up capital to open the business, and to sustain it for a period of no less than eight months.
All dogs that participate in services provided by PAWS Dog Daycare will be required to sign a both a medical waiver and a pet care agreement limiting the liability that the company is exposed to. The company will offer a wide variety of services, such as: Dog Daycare, Dog Training with Daycare, Pet Photography through an independent contractor, and in home behavioral modification.
PAWS will aggressively seek out other local business to form strategic alliances allowing their customers to receive discounts on the services we provide and allowing them to offer a more pet friendly establishment.
In the United States nearly two thirds or 62% of households own a pet compared with 56% in 1988, 39% of households own dogs and 34% own cats. Almost half or 47% of households own more than one pet and each household will spend about $460 per pet this year. Annual spending on pets is topping $34 billion per year. PAWS Dog Daycare will move into this market by offering quality services designed to fulfill not only the needs of the pet but the emotional needs of the owners as well. Through advertising in the print media, on the radio in the form of infomercials and talk shows, and direct marketing with mailers, strategically placing brochures in businesses the cater to our customer demographic, and establishing working, non competitive, reciprocal relationships with pet organizations and pet specialty businesses frequented by our potential client base, we will highlight our quality products and services.
What makes this industry so attractive is that, although the number of U.S. households with pets has held steady at approximately 58 million over the past ten years, the amount of money Americans spend on their pets has exploded. In 1993, overall retail sales of pet- related items were approximately $16 billion. By 1997 this number had risen to $22.6 billion, and by 2001, that number is expected to jump to $28.5 billion. Industry experts expect sales to grow steadily for the next five years, from three to fifteen percent. This increased importance and love for the family pet has caused existing pet services to flourish and has created entirely new fields of pet care. Scores of entrepreneurs, such as the Petco superstores, are developing businesses catering to pet owners.
PAWS Dog Daycare is in a unique position in that we have no local competition for our specific service. We will continue to target areas that have the client base to support our services but do not have direct market competition as strongholds for our stores. Due to the relatively new nature of dog daycare in current society there are a many hundreds of untapped and unused potential customer markets and locations.
The critical threats to this business venture are:
1. 2.
3.
Sudden market saturation of our target area by larger companies with higher advertising and construction budgets.
Competition from large pet retail chains desiring to add a like service to the list of services that they provide. Failure to educate the public about the benefits that our service provides for their pets.
The greatest threat to our business would be the emergence of similar or like kind business in our target area that are part of a national chain or franchise. However due to a lack of a National Advertising Campaign by any of the larger Dog Daycare Franchises the threat may be negligible at best. We do not believe that there is as of yet a Dog Daycare that has achieved such status as to be instantly recognizable by the public. We do however believe that with proper management and correct financial management and strategic store placement to secure our base we will be able to compete with the larger franchises inside of ten to fifteen years.
By beginning on a smaller scale, PAWS Dog Daycare has the foresight to grow at a rapid pace to keep up with demand. We wish to maintain a steady rate of sales growth; however, we understand that sales will vary in different months as our local economy is seasonally based with the majority of our clients living outside of our state during the summer months. We expect rapid increases during the winter seasons that will boost sales, and establish long lasting clients, then we will allow that growth to slow to a steady rate.
The break-even point for PAWS Dog Daycare is based on the assumption that we will have at least 200 check in and check outs per month or roughly 7 dogs per day participating in our Daycare Services at $20.00 Dollars each, we expect also expect to generate additional revenue of $400 to $500 per month in add on services, such as baths, training, nail trimming etc. and average approximately $22.50 per dog, for a total monthly sales break-even of $4,500. This should be attained by the third month of business and met and exceeded every month their after even during the off season, which is expected to be the slowest time of the year, since this is the seasonal economy. The break-even point will appear more rapidly for PAWS Dog Daycare than for other types of pet related business in our area since we have no local competition for our customer base.
Our cash situation is optimum we have sufficient start up capital on hand to begin operations and sustain the business for an extended period of time in the event that our expectations are not met. Our unchallenged position in the local market will insure increased growth and allow the business to gain financial ground quickly. The cash flow is slowest during the seasonal months and may be negative for the first two months after initial commencement of operations. However the, business will be prepared for this with cash reserves, and will maintain positive cash balances.
Goals
PAWS Dog Daycare is a new business with one major goal, and that is to provide the utmost in quality pet care and pampering. It is our job to insure that every dog entering our facility and participating in services that we provide is not only happy, but in a safe, secure and structured environment. We provide the social interaction that a dog needs, the kind of social interaction that owners are unable to provide due to work, or other commitments.
Expand PAWS Dog Daycare both locally and nationally with steady management and proven business principles
2. Be recognized as the premiere pet service facility in Florida.
3. Provide solid customer service and deliver quality pet care through our knowledgeable staff, and modern facilities.
Mission
The economic environment of current society presents potential clients with a number of choices and alternatives. Also the recent emergence of the dog daycare industry and its popularity leaves open the door for competition to present itself in areas that we plan to enter. PAWS Dog Daycare will provide high quality service; competitive pricing and excellent customer service that other will be unable to compete with. We will establish a loyal client base by ensuring that we interact with each client and their pet on a personal level while providing and updated modern facility with a variety of services to fit their pet specific needs. We will insure through a trained and knowledgeable staff that all of our clients needs or met and exceeded with each visit to our store and with each purchase that they make. We will insure that our clients need never visit another facility offering a similar service and that potential clients will see the value our service provides their pet and the satisfaction that we will provide them.
Keys to Success
The keys to the success PAWS Dog Daycare will include our commitment to quality and customer satisfaction. We will be responsible for ensuring a high degree of professionalism in four areas:
Unparalleled fulfillment of the clients’ expectations for pet related services.
Competitive pricing and superior quality for the array of services offered.
Facility maintenance and aesthetic appearance ensuring our new clients view the facility as clean and modern, lending them to want their pets to stay at PAWS Dog Daycare.
A reasonable and fair profit for all services offered
Company Summary
Company Summary
PAWS Dog Daycare was planned in 2005 and is currently located in Port Charlotte, Florida. We will start operations with a staff of three working full time, with goals of opening a second and third store in our two neighboring communities of Punta Gorda and Englewood within the next 5 years. The company is established in a commercial location on a major traffic thoroughfare having a daily vehicle count in excess of 56,000. PAWS Dog Daycare is established as a limited liability company under the name PAWS LLC. It is our intent to increase sales and our client base by no less than 15% month over month during the first year through a solid customer service and the additional of additional pet related services to complement our business.
The business owner will also serve as manager of daily operations and will require a staff of two to assist in the effective operation of the business. The owner of PAWS Dog Daycare has a successful history not just in the pet industry but in business as a whole. A nine year veteran of the United States Marine Corps, a successful dog trainer in the local area, and a successful real estate investor. The owner will personally provide all of the necessary start up capital to open the business, and to sustain it for a period of no less than eight months.
The staff of PAWS Dog Daycare understands the value of our client's time and provides convenient hours of operation to accommodate their pet related needs. We also understand the desire of the client to be satisfied with the service we provide and with the value received for the money spent. At PAWS Dog Daycare we will not settle for anything less than the best in customer service and quality pet care.
Company Ownership
PAWS Dog Daycare is established as a limited liability company under the name PAWS LLC. It is the intention of the company to continually develop new sales and broaden the client base through community service events that provide free advertising, through unbeatable customer service and value, and through paid advertising media. The company will offer a variety of pet related services to meet the needs of our clients and offer convenient hours of operation making our service available to a larger number of potential customers.
Start-up Summary
The founder of PAWS Dog Daycare has had a successful history in all previous business ventures, ranging from real estate investing, stock investing and animal training. A nine year veteran of the United States Marine Corps and having successfully completed some of the most intellectually challenging schools the military had to offer always in the top 10% of the class, combined with a solid leadership style based on experience received during service in the military. The business will be started and managed with competent leadership and plans for expansive growth into the surrounding communities.
The owner will personally provide all of the necessary start up capital to open the business, and to sustain it for a period of no less than eight months.
The inherent liability associated with providing services for clients pets will be limited in the form of a binding contract or service agreement that hold PAWS LLC, harmless for injury or death resulting from all but gross negligence while a pet is in our care.
PAWS will aggressively seek out other local business to form strategic alliances allowing their customers to receive discounts on the services we provide and allowing them to offer a more pet friendly establishment.
It is the intention of the founder to keep a very personal touch to the business by hiring competent, intelligent and service oriented staff as the business grows. The founder has had numerous other successful business ventures, owns both commercial and residential property and maintains a spotless credit history with lenders.
START UP FINANCIAL SUMMARY
Start Up Expenses
Commercial Lease
Security Deposit
$3,400
Rent
$1,500
Consultants
$0
Permits and Licenses
County Business License
$275
County Occupancy Permit
$125
County Commercial Safety Inspection
$150
Fire Inspection
$50
Health Department Approval
$35
Legal
Medical Release & Liability Waiver
$150
Corporate Formation & State Filing $450
Fees
Construction
Facility Build Out $18,000
Construction Permitting $375
Utilities
Setup
Water Deposit $250
Water 1st Month
Electricity Deposit $375
Electricity First Month $180
Phone line installation and Data $200
Phone 1st Month $99
Insurance $850
Equipment
Fax, Computer, Register, Credit Card $2,700 Machine etc.
Kennel Software $700
Bathing Tub, Grooming Tools etc $1,900
Expendable Supplies
Office Supplies $250
Cleaning Supplies $200
Dog Supplies $325
Miscellaneous $1,000
Total Start up Expenses $33,539
Start up Assets Needed
Cash Balance at Start Up $25,000
Total Requirements $58,539
Funding
Company Locations and Facilities
PAWS Dog Daycare is located in the Charlotte County Florida, It is a commercial location based business on the US 41 with an approximate traffic count of 56,000 cars per day. The facility is 2800 square-feet with a lobby at the main entrance to facilitate ease of collecting customer transactions and controlling access to the rear of the facility. Through the lobby door there is an 800 sq/ft play area for smaller dogs, a 1500 sq/ft play area for larger dogs, a 200 sq/ft office and an additional 300 sq/ft in the form of walk areas and restrooms. We also have another 800 sq/ft available for expansion in the future that is as yet unassigned and non renovated and behind closed doors, away from the view of our customers.
Are facility is equipped with the latest in software and office equipment to ensure that customers are handled professionally and quickly and to insure good record keeping. We have employed numerous purpose specific design elements to insure that our facility remains clean and usable with a minimum of maintenance costs.
All pets are in are kept in their respective play areas based on size and age and each play
Investment AIMS LLC
$60,000
Current Liabilities
Accounts Payable
$0
Accounts Borrowing
$60,000
Long Term Liabilities
Accounts Borrowing
$60,000
Loss at Start up
$33,539
Total Capital
$26,461
area is equipped with numerous toys, beds, and other amenities to keep our clients pets happy and content while staying at our facility. Legal Considerations
PAWS Dog Daycare will be operated as a limited liability company, due to the inherent risk and liability of dealing with animals. This serves to protect the investors from undue liability caused by accidents or situations that may arise in a business that keeps animals in its care. Legal Council will be employed to draft the liability waivers and other such forms as may be needed for the customers to sign prior to providing services to limit the ability of customers to file lawsuits in all events except gross negligence on the part of PAWS Dog Daycare.
Taxes will be paid as required by the Division of Corporations in the State of Florida; Quarterly Sales tax will be paid out of those revenues to which it applies. The owner/managers salary will be paid out of the end of year profits and the majority of the first years profits will be reinvested in the business and used to pay incrementally its current liabilities to AIMS LLC. The corporation that provided the initial investment and start up capital, AIMS LLC is owned by the same owner as PAWS Dog Daycare.
The owner has received positive confirmation from Charlotte County for the company to operate in a Commercial Intensive zoned parcel on US 41, since the intent of the zoning is for businesses that have a high impact on their surrounding area.
Two types of insurance will be needed for the company. Business liability Insurance offered through Gibson Governor and which specializes in providing insurance to the pet industry will provide a policy for $1 million, for injuries or death to persons or animals while participating in services or in the facilities operated by PAWS Dog Daycare. Key Insurance Agency will insure the business assets and property against theft or destruction by fire, flood or other natural disasters.
Products and Services
Products and Services
PAWS Dog Daycare will offer a variety of services to meet the pet care needs of our clients. We will offer specific information of all the services that we provide in the form of literature available to our clients at any veterinary care facility in the county and in the form of an informative and knowledgeable sales staff that is capable of answering any clients questions in person. The information is designed to let the client see the value of our services for their pets. When a client enters our facility they are given a tour that gives the client a detailed view of all levels of our facility and that addresses every service that we provide. This enable the client to feel comfortable with the setting and level of care that we provide for their pets. The following sections are the services we provide.
Product and Service Description Dog Daycare:
The caring for and socializing of dogs during the day while their owners are at work, this is the mainstay of our business and where the majority of our revenue is generated in the form of a daily fee for service. The play areas for the dogs in our care are designed to let the animals socialize in a safe and secure and supervised environment. The play areas are designed to be aesthetically pleasing as well as facilitate the easy clean up and removal of animal wastes. The dogs are socialized and played with through out the day in the form of tug a rope, throwing tennis balls and various other planned activities to keep them busy during the day. Each client will see the benefit to their pet starting from the first day that they pick them up after daycare in the form of a calm, relaxed, and well socialized dog.
Temperament Tests:
Temperament tests are given to assess the current social ability of the dog and to determine if there are aggressive tendencies present that would pose a potential safety risk to the staff or other pets in our care. The temperament test serves to give the client a good assessment of where their dog is at in it’s level of socialization. It also serves to provide a sense of well being with the clients as they feel secure in the fact that we screen every animal entering the facility to insure the safety of all animals in our facility. The temperament test is also an opportunity for us to assess and address additional training or socialization that may be needed prior to allowing the dog to interact freely with the other dogs in the play areas. The temperament test is provided with one free day of daycare and is an additional source of revenue for our facility.
Training with Daycare:
For those Dogs that are non aggressive but need a little more training we provide training in conjunction with daycare at an additional charge. It allows the client to receive a much more balanced and controllable pet while providing much needed socialization for the dog at the same time. This service is also offered at an additional charge for our clients.
Additional Services:
PAWS Dog Daycare understands that there are numerous additional services that we have the ability to offer our clients while their pets are in our care. We will offer a small retail area that consists of leashes, collars, shampoos and other such items positioned in the lobby. We will also offer basic grooming services, to include baths, nail trimming etc at an additional cost to our clients. We have goals of also offering full scale grooming, training and boarding services to our clients as side services that compliment our main service of dog daycare.
Competitive Comparison
PAWS Dog Daycare is the only establishment in Charlotte county to specialize in Dog Daycare and luxury pet services. There is on establishment that is dedicated primarily to grooming that offers dog daycare as a side service, but the level of service and the quality of service is lacking. The facilities are much smaller and the dogs get little or no social interaction during the day with the staff. Our location and quality of service is unlike any that has been seen in this county prior to our arrival.
The price for the services that we provide is well inline with the financial ability of our clients to pay based on the median income of the area. Our commitment to customer service and satisfaction is unequaled.
The critical threats to this business venture are:
1. 2. 3.
Sudden market saturation of our target area by larger companies with higher advertising and construction budgets.
Competition from large pet retail chains desiring to add a like service to the list of services that they provide. Failure to educate the public about the benefits that our service provides for their pets.
At PAWS Dog Daycare, we care about our community and the pets that inhabit it. We will offer discounted services to seniors as well as partnering with animal rescue groups to hold adopt-a-thons and other pet related charity events from our location. We will also post pictures of animals in need of a home on our website and in areas around our facility frequented by our customers.
Fulfillment
PAWS Dog Daycare employs only those individuals that have proven themselves to be professionals in the pet industry. Our staff is required to have a previous background in the pet industry as well as a background in sales and customer relations. We also insure that any business that we recommend to our clients, maintains the same level of professionalism and quality that we do. We strive to meet that needs of our customers on every level, not just in the services that we are able to provide them at our facility, but in the knowledge we are able to offer them about pet care and other non competing services in our area.
Technology
Through the recent emergence in the popularity of dogs as members of the family and not just pets a number of new technologies have come about to include DVD’s that propose to entertain your dog while your at work, to interactive toys and other items that are designed to keep a dog from boredom when left alone. We do not feel at PAWS Dog Daycare that there will ever be a technological advance that can replace the benefit that a dog receives from social interaction with other dogs and the emotional stimulation provided by interaction with a trained, dedicated and loving staff.
Due to this we believe that our service is timeless and not at risk of being replaced by any technological advances currently available or that will become available in the future. When it comes to dogs the one thing that they need is interaction, and socialization with other dogs and the ability to use excess energy playing under the watchful staff provided by PAWS Dog Daycare.
Market Analysis Summary
Market Analysis Summary
In the United States nearly two thirds or 62% of households own a pet compared with 56% in 1988, 39% of households own dogs and 34% own cats. Almost half or 47% of households own more than one pet and each household will spend about $460 per pet this year. Annual spending on pets is topping $34 billion per year. PAWS Dog Daycare will move into this market by offering quality services designed to fulfill not only the needs of the pet but the emotional needs of the owners as well. Through advertising in the print media, on the radio in the form of infomercials and talk shows, and direct marketing with mailers, strategically placing brochures in businesses the cater to our customer demographic, and establishing working, non competitive, reciprocal relationships with pet organizations and pet specialty businesses frequented by our potential client base, we will highlight our quality products and services.
Target Market
The target market for the services that we provide is the individual pet owners themselves, There are three distinct categories that we feel the individual pet owners can be divided into, the elderly, the working class, the upper middle class.
The Elderly:
This market segment can be described as those individuals over 60 years old that are financially stable yet less physically able to cope with behavioral issues than our younger customer classes. The elderly customer pursues dog daycare not so much as a service for there pet but as a service to themselves. While it is true that Dog Daycare provides a wide variety of benefits to the pets, the older customers pursue our services to make life easier on themselves by being able to enjoy quality time with their pet and not having to meet the strenuous exercise requirements that some breeds have. Older clients may not be as physically able to provide the necessary activity level that a dog requires, they are also the ones most common to only own one dog and to keep that dog sheltered from the outside world. This leads to a lack in the development of socialization skills and the birth of numerous bad behaviors, such as pulling on the leash when they see another dog, barking at windows as people walk by, and other destructive behaviors brought about by boredom. Due to this particular clients age they are not well prepared physically to handle the all of the various problems that these behaviors create. The vast majority live on a retirement income and or have another form of steady income with no children at home leaving the majority of there disposable income to be spent on their pets. This particular segment will represent roughly 15% of our customers but 25-35% of our sales.
The Working Class:
This market segment is represented by those individuals between 20-45 years of age earning less than $40,000 per year. Within this class you will find, mechanics, salesmen, hairdressers, tradesmen, and other forms of employment that do not require minimal or no secondary education. This market segment has limited disposable income and both members of the household will generally maintain full time jobs to sustain the household. The working class pursues our services out of value and affordability, as well as the desire to let their dogs participate in services thought to be exclusive. By providing excellent and affordable additional service e.g. $9.99 dog bath and dry, we are able to appeal to this customers need for convenience combined with affordability. Due to their lifestyle and need to maintain constant full time employment to keep sufficient income available to support the household, they are left with limited time to provide the routine maintenance, exercise requirements, and socialization that a dog requires. We expect this customer segment to account for 25% of our customers but only 15-18% of our sales.
The Upper Middle Class:
The Upper Middle Class segment is represented by those individuals 25-55 years of age earning a household income in excess of $40,000 per year. This class would consist primarily of lawyers, doctors, managers, small business owners, etc. the majority having employment that requires some form of secondary education, and providing them with sufficient disposable income for use on their pets. The Upper Middle Class is the only class to see our service as a benefit to their pet first and as a convenience second. The upper middle class will also utilize our services more readily on word of mouth as there is a tighter social niche and desire to fit in amongst their peers. The key note to this market segment is that they will use our services even when they are working at home, or have the available time to spend with their pet to provide it socialization. They are also primarily influenced by service, not cost when making their purchase decisions which benefits a customer service based business such as our greatly. We expect the upper middle class to account for 60% of our customer base and 55-65% of our sales.
Target Market Segment Strategy
Our target markets are upper-middle class families, elderly couples, and working class individuals. We chose these groups because they are most likely to have pets who would be considered a member of the family, and because they are most likely to purchase based on convenience and that can afford the services that we offer their pets.
In today's current environment, pets occupy a prominent place in a family, or as the central focus of attention in a single household. Sales trends for pet-related merchandise have shown substantial increases year after year since 1996. Pet industry sales closely parallel the general trends, such as gourmet foods, high-fashion accessories, and medical and dental needs. PAWS Dog Daycare fills a need for providing much needed socialization to pets that would otherwise be left home alone, where they could engage in disruptive or destructive behaviors that could potentially cost them their home and or result in them being placed up for adoption or left at an animal shelter. Considering the rise in income, population and hours that people work per week, along with the increased spending for pet-related items and services, the demand for Dog Daycare and the other services that we provide can only increase.
Market Needs
Pets have always played an important part of the makeup of the American family. However, the American culture has shifted dramatically in the last two decades, providing a more prominent role for the pet as a valued member of the family. In today's busy society, the constant necessity of working and handling the daily tasks of life leads to people losing touch with friends, and family so they become much closer to their pets. The population has made another important shift in that couples are waiting much longer to have children if at all. Thus the disposable income that would have been spent on a child is not shifted and spent on the family pet.
These two income families without children have created an economy where the pet is a member of the family and is provided for in much the same way as a child would have been. We now have baby boomers turning 65, with the children gone and pursuing lives of their own, the family pet helps to alleviate Empty Nest Syndrome. The family pet is no longer just a pet, but a loved and cherished member of the family, and in some cases these owners consider their pet their children.
This love for the family pet has translated into big business, as owners are ever more willing to spend big money to care for and pamper the family pet. People want to show how much they care. Thus, it only makes sense that this important member of the family should have the opportunity to socialize and make new friends instead of being left home alone. We are now seeing an increase in governmental spending for pets in the form of dog parks, pet friendly beaches and sponsored pet related community events. There is also a growing number of pet friendly restaurants and other places that cater too or accept mans best friend in an effort to boost their business and sales.
Market Trends
As our society continues to grow and more homes report ownership of pets, the bonds between those owners and their pet continues grow along with the amount of money that they are willing to spend on those pets.
We now have dog bakeries, luxury pet motels, gourmet pet food, and a myriad of other pet related services that would have been unheard of 20 years ago. These services are now being viewed not as an eccentricity for the wealthy but as a viable and useful service for the comfort of our four legged family members.
Companies that provide specialty services to pets are reporting year over year profit increases in the triple digits. Our views of pets has shifted from purely outside or recreational additions to the family to accepted, loved and cared for members of the family.. The market segment of pet owners is becoming a more solid profit maker, with the trend towards spending more money on a pet with every passing year.
Market Growth
The number of U.S. households with pets has steadily increased from 58 million or 56 percent in 1988 to 71.1 million or 63 percent in 2006. There were 88.3 million cats in 2006 up 34% compared to the 59.1 million pet cats in 1996, and 74.8 million dogs up 21% over the 59.2 million in 1996. However, the amount of money Americans spend on their pets has exploded. In 1993, overall retail sales of pet-related items were approximately $16 billion. By 1997 this number had risen to $22.6 billion, and now in 2007 that number is 40.8 billion dollars or a 61% increase from 1996. The amount of money that people spend on their pets grows at a rate of nearly two to one compared to the increase in the number of people that own pets. This shows that not only is the amount of pet owning homes on the rise the people that do have them are valuing them more.
Dog day-care centers are growing all across the country and carving a path through the pet- care industry. Those with busy careers are feeling ever more guilty about leaving their best friend alone all day. People are beginning to see the value provided by Dog Daycare in that it gives the animals the ability to play the day away in a "cage-free", supervised and safe environment. We are seeing an explosion in every segment of the pet market, the emergence of new pet related businesses every year. We now have pet spa’s, pet masseuses, pet weddings, and there are currently dating sites dedicated specifically to finding a mate for your pet.
While kennels have always been around, they may not always be around n the future modern day dog and cat owners are being more selective for their four-legged loved ones when leaving town for a business trip or vacation. They are now making their purchase decision not based on cost but based on the service that their pet will receive during its stay at a boarding facility. Thus newer modern facilities are including such services as heated floors, color television, private entrances, beds, furniture and a plethora of other items and services that one would normally expect to find at a hotel for their human counterparts. Service Business Analysis
PAWS Dog Daycare is strategically positioned to dominate it’s current local market for the services it provides. We compete with local veterinarians for those clients that desire boarding for their pets, but we have priced our services above those offered by the vets to not appear to be in direct competition with the vets, as our business profits from recommendations by the veterinary professionals in the area. There is no real or direct competition for our daycare clients or for the services that we are able to provide as an addition to our daycare. The benefits and drawbacks of each of our competitors as compared with the services we offer are hardly a match in the quality of services that we provide.
Veterinary Offices:
Strengths: Every dog is required by law to receive certain vaccinations for the safety of the public, this places each and every one of our clients at a veterinarian at some point in during the lives of their pets. Veterinarians are considered to be experts in the field of animal care and people take the advice of their animal care specialist seriously and to heart. Veterinarians are able to sell their boarding services based on the trust that the clients have in them as animal care professionals. The majority of the revenue received at a veterinary office is the result of medical services provided or retail items sold, so they are able to offer boarding at an very affordable rate due to the fact that it is a side service and not one on which their business depends.
Weaknesses: The affordability of boarding with a vet is also one of its greatest weaknesses, boarding is a side service and as such is a no frills event. The animals generally enjoy their stay in a small cage, enclosure without an outside area, and little or no social interaction. An untrained or moderately trained staff of kennel workers cleans and feeds the animals at regular intervals and may or may not clean waste products in a timely manner. Pets are a sideline and not the major focus of the business. Groomers:
Strengths: Specialize in the maintenance and grooming of animals, usually have an established relationship with their clients.
Weaknesses: Animals are caged before and after services, priced higher than the services we provide, are not designed to allow the animals to play and socialize in a safe and supervised environment prior to or after being groomed. Time is money, so they move through the animals they groom quickly with little or no emphasis on the pets comfort or needs, the emphasis is on completing the task at hand.
Business Participants
The Dog Daycare industry is composed of thousands of small residential and commercial operations and a few privately held larger franchise organizations. Dog Daycare is not a new service but is one that is growing at an accelerated rate. While this segment of the industry is largely individually owned, There are a few companies, Camp Bow Wow, Gullirvers and others are offering a franchise operation with instruction and low start-up costs.
Strategy and Implementation Summary
Strategy and Implementation Summary
PAWS Dog Daycare will use strategic networking with volunteer organizations and pet wellness groups that bring with them free press coverage to begin to reach our target client market. We will also place well-designed and easily visible advertising material and coupons in pet stores, adoption agencies and the veterinary facilities in our area. We will also through our networking with volunteer and pet wellness organizations host adopt-a-thons and other public service events at our facility to bring pet owning individuals to our facility and will provide them with a tour and a description of the services we offer. We will also use newspaper advertising to reach individuals in their homes as well as easily listening and listen while you work radio stations to pass our message to them on the way, during, and on the way home from their source of employment. Our hours of operation will also be extended beyond the range of the normal work schedule so that people may drop there pet off on the way to work and still conveniently pick them up after work. We will continue to use our current clients to spread the word of our outstanding service and customer satisfaction to their peers, relatives, and friends to bring in new clients.
Competitive Edge
PAWS Dog Daycare’s competitive edge is its service and knowledgeable staff with a background in sales, leadership and customer relations. We offer a unique service that is not available anywhere else in our area, a service that is needed and a service that our clients can actually see the value of as they pick up a calm, relaxed and happy pet at the end of a day of daycare.
Marketing Strategy
PAWS Dog Daycare will use strategic networking with volunteer organizations and pet wellness groups that bring with them free press coverage to begin to reach our target client market. We will also place well-designed and easily visible advertising material and coupons in pet stores, adoption agencies, pet related businesses and the veterinary facilities in our area. We will also through our networking with volunteer and pet wellness organizations host adopt- a-thons and other public service events at our facility to bring pet owning individuals to our facility and will provide them with a tour and a description of the services we offer. We will also use newspaper advertising to reach individuals in their homes as well as easily listening and listen while you work radio stations to pass our message to them on the way, during, and on the way home from their source of employment. Our hours of operation will also be extended beyond the range of the normal work schedule so that people may drop there pet off on the way to work and still conveniently pick them up after work. We will continue to use our current clients to spread the word of our outstanding service and customer satisfaction to their peers, relatives, and friends to bring in new clients.
Positioning Statements
PAWS Dog Daycare will provide a service that is unlike any other in our area, a service that allows pets the opportunity to engage in healthy, safe, fun and supervised socialization activity instead of sitting at home alone, where they could potentially develop problem behaviors or engage in destructive activity. These are issues that could lead them to be given up for adoption or placed at an animal shelter bringing with that the possibility of euthanasia if a suitable home is not found in a specified amount of time. We truly understand the value of a dog as an important member of the family and express our desire to provide the utmost in service to every client that we come in contact with.
Promotion Strategy
We will use paid advertising, local pet related community events and direct marketing to broaden our ever growing client base. Through an arrangement with local veterinarians we will provide pass through links on our website to retail goods and medicines that they offer on their individual sites. We will also implement a series of classes at our facility teaching, canine leadership and obedience and how to assume the alpha role in the household with your family pet. Our main promotion will be through client testimonies to their friends and peers of the great service that we provide.
Sales Strategy
PAWS Dog Daycare sales strategy is to include in all of our marketing material a prominently displayed web address to our very descriptive, informative and interactive website complete with numerous pictures and photographs of happy pets attending the services that we provide. We will also place this marketing material in pet stores, adoption agencies, pet related businesses and the veterinary facilities in our area. We will also maintain a strong relationship with our local veterinarians to insure good business in the form of referrals. All of our clients, regardless of the service that they are interested in will be provided with a tour of our facility that describes not only the specific service that they desire but all the services we offer. We will take the time to discuss the any questions they may have to insure that the customer is satisfied with level of care that we provide.
Sales Forecast
We intend on beginning our business in an upscale and professional way, located in a commercial location along the main corridor through our county. We have designed our facility with an eye to the future and the ability to upgrade and expand to keep up with demand. We foresee a rapid growth in our business during the first six months potentially doubling our client base each month during the first 3 months, leveling out with a steady growth rate of 5-8 percent per month from that point forward. We expect rapid growth during our seasonal months which run from October through February as our local population will nearly double during that time frame bringing with it an increase of 35-40% in sales. It is our intent to concentrate the majority of our advertising budget on the non seasonal months when our economy is slower and when we need steady, dedicated and loyal clients using our services. Our overall outlook for future sales is a growth of 50-80% during the first year with a predictable growth of 20% per year there after. It is our intent to set aside a percentage of the profits generated to facilitate the opening of another store midway through the third year.
In the following tables rapid increases during our seasonal months will boost sales, which will level off to a steady growth rate during the non seasonal months. Even though our business is new to the area and the concept of dog daycare may not be totally understood by our local population it will be our other services, to include discount baths, adopt-a-thons with pet organizations that will pull the initial client base to our store. Once these clients are sold on the service of Dog Daycare we expect that it will surpass our other services in generating a reliable and predictable source of income which we can use to plan future growth with.
Sales Forecast
Sales Forecast 20% rate of Growth
Unit Sales
FY2007
FY2008
FY2009
Daycare Check ins
Off Season
800
960
1152
In Season
1300
1560
1872
Baths
Off Season
150
180
216
In Season
275
330
396
Nail Trims
Off Season
In Season
Boarding Reservations
Off Season
In Season
Holidays
Instructional Classes
Off Season
In Season
Total Unit Sales
Unit Prices
Daycare Check ins
75
130
160
240
70
4
8
3212
FY2007
$16.00
90
156
192
288
84
5
10
3855
FY2008
$18.00
108
187
231
345
101
6
12
4626
FY2009
$18.00
Baths $9.99 $9.99 $9.99
Nail Trims
Boarding Reservations
Off Season
In Season
Holidays
Instructional Classes
Off Season
In Season
$7.00
$25.00
$30.00
$30.00
$150.00
$175.00
$7.00
$30.00
$35.00
$40.00
$175.00
$200.00
$9.00
$30.00
$35.00
$40.00
$200.00
$225.00
Sales FY2007 FY2008 FY2009
Daycare Check ins
Off Season $12800.00
In Season $20800.00
$17280.00
$28080.00
$20736.00
$33696.00
Baths
Off Season
In Season
$1498.50
$2747.25
$525.00
$910.00
$4000.00
$7200.00
$1798.20
$3296.70
$630.00
$1092.00
$5760.00
$10080.00
$2157.84
$3956.04
$972.00
$1683.00
$6930.00
$12075.00
Nail Trims
Off Season
In Season
Boarding Reservations
Off Season
In Season
Holidays $2100.00 $3360.00 $4040.00
Instructional Classes
Off Season
In Season
Total Sales
Direct Unit Cost
Daycare Check ins
$600.00
$1400.00
$54580.75
$3.00
$875.00
$2000.00
$73161.82
$3.25
$1200.00
$2700.00
$90145.88
$3.50
Baths $2.00 $2.25 $2.50
Nail Trims $.40
Boarding $1.25 Reservations
Instructional $60.00 Classes
Direct Cost of Sales FY2007
Daycare Check ins $6300.00
$.45
$1.50
$75.00
FY2008
$8190.00
$.50
$1.75
$90.00
FY2009
$10584.00
Baths $850.00 $1147.50 $1530.00
Nail Trims $82.00
Boarding $587.50 Reservations
Instructional $720.00 Classes
$110.70
$846.00
$1125.00
$147.50
$1184.75
$1620.00
Management Summary
Management Summary
The management of PAWS Dog Daycare will remain during the first few years. The founder of the business will serve as the manager of day to day operations. The initial staff will consist of the founders wife and father, and one additional part time individual. The responsibilities for each individual are as follows, the manager will be responsible for the overall smooth operation of the facility, to include sales and marketing, client relations, daily cash counts, teaching classes, supervision of record keeping practices and direct financial responsibility and management of the company’s assets as well as management of both accounts receivable and accounts payable . The founders father will be responsible for assisting the manager in maintaining the smooth operation of the business, and will be knowledgeable and capable of performing all the tasks of the manager in all respects. The responsibilities for the founder’s wife will include handling client data, record keeping, assisting in the daily care of the dogs in our facility .confirming the manager’s cash count and balancing that against the end of day receipts. The part-time individual will be responsible for keeping the area clean, providing baths, nail clips and assisting in the daily care of the dogs in our facility, and check in dogs in to the facility, without any direct contact with the sales transactions or processing payments.
Sub Total Direct Cost of Sales
$8539.00
$11419.20
$15066.25
PAWS Dog Daycare will pace its growth to ensure that we continue to offer quality service to our clients. It is possible that on days when we are at or near capacity that the part time employee may not become overwhelmed and that every individual will have to assist in daily care of the dogs in our facility while maintaining their other responsibilities. This management structure is designed to leave as few gaps as possible in our service, regardless of the total number of dogs in the facility.
Management Team
In addition to maintaining the quality of day to day operations, the manager must also be initially involved in all aspect of the business from the highest levels of financial management, down to providing baths and performing nail clips on those days when the facility is at capacity. It is our intent to add additional personnel as the business accounts grow, in order to alleviate these responsibilities from the manager.
Personnel Plan
Due to the fact that this business will start out small we do not have need for an elaborate or overly complicated personnel structure. The part time individual will only need to be present on those days when we expect to be over 75% of our full capacity. This position will become a full time position as our company grows and we begin to meet or exceed 75% on a routine basis.
We have not set for the owner, or his father this will be will be determined at the end of the year based on the profitability of the business. This is possible due to the fact both individuals have additional income to support normal living expenses.
The staff required to start the business will be the manager, his father and wife and one part time employee.
The duties and job description for each are as follows:
Manager
The overall smooth operation of the facility Sales and marketing Client relations Daily cash counts
Teaching classes Supervision of record keeping practices Direct financial responsibility and management of the company’s assets Management of both accounts receivable and accounts payable Completing transactions and checking client pets out of the facility
Manager Father
The overall smooth operation of the facility Sales and marketing Client relations Daily cash counts
Teaching classes Supervision of record keeping practices Direct financial responsibility and management of the company’s assets Management of both accounts receivable and accounts payable Completing transactions and checking client pets out of the facility
Managers Wife
Handling client data Record keeping Assisting in the daily care of the dogs in our facility Providing Baths and Nail Clips Confirming the manager’s cash count and balancing that against the end of day receipts. Management of both accounts receivable and accounts payable
Completing transactions and checking client pets out of the facility
Part Time Individual
Keeping the facility clean and orderly in appearance Provide baths Nail clips Daily care of the dogs in our facility
Check in dogs in to the facility No direct contact with the sales transactions or processing of payments.
Personnel
Financial Plan
Financial Plan
Dog Daycare facilities require large initial investments in equipment and facilities when based out of a commercial location. The benefit is that once the facilities our constructed the same space can be essentially leased out thousands of times, over a number of years without the need for additional capital expenditures. Very similar to the structure of a hotel or other business that provides a repetitive service out of a central location. The company will spend the first year paying back its initial start up costs and facility construction with the following years returning a solid profit that can be reinvested into the facility for upgrades or to provide the financial foundation for the launch of additional stores.
Personnel Plan
FY 2007
FY2002
FY2003
Title
Manager
$0
$0
$0
Managers Father
$0
$0
$0
Managers Wife
$0
$0
$0
Part Time Individual
$4000
$7000
$11000
Total People
1
1
1
Total Payroll
$4000
$7000
$11000
The following charts and tables demonstrate that the initial up-front investment will allow PAWS Dog Daycare to function with limited debt and overhead costs. This will provide the business with a quick break-even point and increased profit margins from the beginning. As we continue to grow the business we will maintain a philosophy of keeping the business debt free.
Break-even Analysis
The break-even point for PAWS Dog Daycare is based on the assumption that we will be able check at least 175 dog per month for daycare at a unit cost of $16.00, and take 39 reservations for boarding a month at an average unit cost of $27.50 per unit, for a total monthly sales break-even of $3,872.50. We should easily reach and exceed this by the third month of business and continue to exceed it every month there after. The break-even point should be reached rapidly due to the fact that once the business is in operation there is little overhead cost and little or no staff pay in the beginning.
Break-even Analysis
Break-even Analysis
Monthly Daycare Check ins Break-even
175
Monthly Boarding Reservations Break- even
39
Monthly Revenue Break Even
$3872.50
Average Per-Unit Revenue
Daycare Check ins
$16.00
Boarding Reservations
$27.50
Average Per-Unit Cost
Daycare Check ins
Boarding Reservations
Total Monthly Per-Unit Cost
Estimated Monthly Fixed Cost
Projected Profit and Loss
$3.00
$1.25
$575.75
$3296.75
PAWS Dog Daycare expects a 20 percent annual growth rate for the first five years due to the lack of direct competition and our ability to maintain market share in the area. The overhead cost are expected to be stable , with the exception of our part time position possible becoming a full time one in 2008. This will allow us to maintain our predicted 20 percent increase in profits before interest and taxes during the second year of business; this will remain stable even with an increase in expenses for personnel during the second year. The salary of the owner will be taken out of this figure.
Profit and Loss
Pro Forma Profit and Loss
Total Sales
Direct Cost of Sales
Cost of Goods Sold
Gross Margin
Gross Margin Percentage
FY2007
$54,580.75
$8,539.00
$8,539.00
$46,041.75
84.32%
FY2008 FY2009
$73,161.82
$11,419.20
$11,419.20
$61,742.62
84.40%
$90,145.88
$15,066.25
$15,066.25
$75,079.63
93.29%
Payroll $4,000.00
Sales and Marketing $2,400.00
Depreciation $1,400.00
Utilities $2,000.00
Rent $18,000.00
Other $0
$7,000.00 $11,000.00
$1,500.00
$1,500.00
$1,400.00 $1,400.00
$2,000.00 $2,000.00
$18,000.00 $18,000.00
$0 $0
Total Operating $27,800 Expenses
Profit Before Taxes $18241.75
$27,800
$33,942.62
$27,800
$47,279.63
Taxes $1276.92 2375.98 $3,309.57
Net Profit $16964.83
Net Profit to Sales 31.08%
Projected Cash Flow
$31566.64
43.14%
$43970.06
48.77%
PAWS Dog Daycare will be starting business with $26,461.00 in cash reserve to maintain the operation of the business during it’s initial months of operation. Due to high demand for our services and a lack of competition in our area, PAWS Dog Daycare will gain financial ground very quickly reaching a positive cash flow within the first 3 months of operation. We expect slower growth during the off season and explosive growth during season. We will start with sufficient cash on hand to carry the business through its initial first few months and to act as an growing reserve account once the business is in full operation, this will allow us to always maintain positive cash balances.
Cash Flow
Pro Forma Cash Flow
Cash Received
Cash From Sales
Subtotal Cash From Operations
Additional Cash Received
Cash Reserve Investment
FY2007 FY2008
$54,580.75 $73,161.82
$54,580.75 $73,161.82
$26,461.00 0
FY2009
$90,145.88
$90,145.88
0
Projected Balance Sheet
PAWS Dog Daycare is ready to begin operations, with sales expected to not only meet but exceed our projections, there will be a steady accumulation of cash and assets. The accounts payable will remain stable and we do not expect any major capital investments throughout the early years, so the liabilities of the company will remain limited as net worth continues to steadily grow.
Balance Sheet
Pro Forma Balance Sheet
Assets
FY2007
FY2008
FY2009
Current Assets
Cash
$43,425.83
$74,992.47
$118,962.53
Inventory
$1500.00
$1500.00
$1500.00
Payment of Accounts Payable
$29,076.00
$30175.98
$31,109.57
Subtotal Spent on Operations
$29,076.00
$30175.98
$31,109.57
Subtotal Cash Spent
$29,076.00
$30175.98
$31,109.57
Net Cash Flow
$16,964.83
$31,566.64
$43,970.06
Cash Balance
$43,425.83
$74,992.47
$118,962.53
Tools and $2500.00 Equipment
Total Current $47,425.83 Assets
Accumulated $1,400.00 Depreciation
$2500.00
$78,992.47
$2,800.00
($2,800.00)
$76,192.47
$0
$31,566.64
$74,992.47
$74,992.47
$3000.00
$123,462.53
$4,200.00
($4,200.00)
$119,262.53
$0
$43,970.06
$118,962.53
$118,962.53
Total Long Term Assets
Total Assets
Current Liabilities
Retained Earnings
Total Capital
Net Worth
($1,400.00)
$46,025.83
$0
$16,964.83
$43,425.83
$43,425.83

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