2020.09.18.Example Bus. Plan PDF

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Business plan Dog Café

Vesa

Business plan: Dog Café

Table of Contents Table of contents 1. Mission Statement 2. Industry overview 2.1. Understanding the café market 2.2. Understanding the dog market 2.3. Café industry highlights 2.4. Dog industry highlights 2.5. Trends influencing the café market 2.6. Café market structure and competition 3. The opportunity 4. Café description 4.1. Description 4.2 Competitive advantage 4.3. Our strategy 5. Marketing plan 5.1. Understanding the customers 5.2. Target customer profile 5.3. Pricing strategy 5.4. Communication strategy - year 1 5.5. Sales strategy 5.6. Communication strategy - year 2-5 6. The team 7. Operations 7.1. Operation strategy 7.2. Development timeline 8. SWOT Analysis 9. Critical risks 10. Financial plan 10.1. Basis of presentation 10.2. Income statement assumptions - Revenues 10.3. Income statement assumptions - Cost of sales 10.4. Income statement assumptions - Expenses 10.5. Balance sheet assumptions 10.6. Funding assumptions 10.7. Cash flow assumptions References list

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Business plan: Dog Café

The Jadasko Café 1. Mission Statement Our mission will be to provide a safe and cosy environment to let our consumer enjoy a relaxing moment with the dog that will be at their disposition 2. Industry overview 2.1. Understanding the café market Brussels is the Belgium and Europe’s capital. In the 1.199 millions residents, 35% doesn’t have the Belgian nationality. The mean age of the population is 37 year old. It is an international and cosmopolite town thanks to the european institutions and the NATO’s headquarter. It is a main economic crossroad. Brussels is known for its creative and open caracter (Gangji, 2017).. In this context, catering represents 24,6% of the total business in Brussels with the number of 5100 shops in 2017. Cafés lost 33% of its representants (780 establishments) between 1997 and 2017. This phenomenon is due to the societal evolution. Today, customers move to others concepts. By contrast with the decrease of cafés, the number of tea-rooms increases, specially inside the first ring road (Le commerce bruxellois en chiffres, 2017). 2.2. Understanding the dog market Dogs take more and more space in the heart and the wallet of Belgian. Following a study of Tom&Co, 81% of dog lovers claim that their pets make them happy. They are source of peace and relaxation. In 2014, a study counted 1,5 millions dogs in belgian households. It never has been so important. One household over five has a dog. Regarding the ownership of pets, the region of Brussels gets the third place in Belgium (RTBF, 2017). Belgian spend little money for acquisition of dogs. They seem less reluctant for the care of their pets. Pet’s spendings represented 1,3 billion euro in 2014 ; 55% of spending is for the foods, 23,2% for the veterinarian, 6,3% for the pension, and 10,5% for varied products (LeSoir, 2017).

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Business plan: Dog Café

In the same time, 18.000 dogs are abandoned each year in Belgium, 500 in Brussels in 2016. The average age of abandoned dogs is three year old. Finally, 2.700 (almost one dog over seven) are put down (Dupont, 2014).

2.3. Café industry highlights The coffee shop industry is a growing industry, especially specialist coffee shop. Indeed, according to Euromonitor International data, in 2016 this rapid innovation and growing competition increase by 9.1%. This growth has been constant all over the world (Gordon & Friend, 2016). The European coffee shop industry includes in 2017 about 301,593 cafes and 13 344 specialist coffee shops throughout Western Europe. Since 2010, cafes decline by 8% and specialist coffee shops increased by 50% (Gordon & Friend, 2016).

2.4. Dog industry highlights The global trend is the growth in demand for high quality pets care. Global sales for pets care is estimated at 131.6 billion USD. Euromonitor expects an annual rise of 2% until 2021. According Grand View Research, dogs care hold the largest part of this market (39,79%) and the global market will increase by 4,6% for 2025. Pension and grooming services are expected to have the fastest growth in the market (Grand View Research, 2018).

2.5. Trends influencing the café market Here are some general trends that may occur in the dog industry and cafes market in 2019: Transparency Consumers becomes more and more concern about product transparency. They want to know about the origin, producer, composition, agricultural and transformation method of the product. As, dogs are considered more and more as family members owners want to purchase the best for their animal companion. Owners of dog want to know everything from the dog product. According to the Label Insight study, 94% of people will become more loyal if the brand is completely transparent (Karapetian, 2016).

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Business plan: Dog Café

Fair trade and sustainably grown products Consumers want products that are produced under fair conditions (fair pay, good conditions, etc). Therefore, the demand for fair trade product have increased. The trend towards fair consumption had become stronger since several years.

2.6. Café market structure and competition At present, the biggest competition of the dog cafe is mostly other cafes (fast food chain with cafe, traditional cafes, bars…). In the dog aspect, the business will not have a strong competition with other dog cafes since we are the first dog cafe in Brussels.

3. The opportunity This project offers the possibility to single people, young workers or family that don’t have the sufficient time, funds or space to own a pet, to spend time with dogs. For some who doesn’t dare to buy a dog, we hope our project will change their opinion and they gonna adopt our homeless dogs. Dogs are liked for their easy behavior and their familiarity with human emotions. Following the  American Society for the Prevention of Cruelty to Animals, dogs prevent depression, stress, and encourage sport exercise and health (Grand  View Research, 2018). According to the official report of Perspective Brussels, consumption trends are moving. People rather spend time in tea rooms than in bar and café. Our establishment gets along with this new way of drink as it offers coffee, tea, fruit juice, and little restauration. After 6pm, drinks with alcohol can be sold as the dogs won’t be present anymore.

4. Café description 4.1. Description Our café will be inside of the city in a house that should be located around 15 to 35 minutes from the centrum of Brussels, a very important part is that the house we plan on renting will have a garden for to the dog to play in. The house has two parts: one for the café and one as a house for the dogs where will be able to treat and feed them. On the other hand, we will only charge food and drink which will be our main revenue source. In the future we might think about expanding our business by organizing

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Business plan: Dog Café

dog therapy, and selling some dog food and toys.We decided to have dogs from a association This association is Veeweyde-Société  Royale Protectrice des Animaux-Ko. Those  dogs will be available for adoption. Astrid’s and Justine’s dog will always stay and will be kind of our mascots. And we will put rules for customers to spend time with dogs and to avoid any problem (such as no alcohol before 6pm in the dogs presence). Concerning the food and drinks, we decided to place ourselves more as a tea room, thus, not serve alcoholic drinks before 6pm. It is also the results from the survey we conducted. On the other hand, the food we will be serving pastry, sandwiches and salads. We might expand the menu in the future.

4.2 Competitive advantage Our first advantage is the innovative aspect of this project in Belgium. The concept already exists in the world but not in Brussels. After our research, we have the confirmation that there is a real opportunity market. At least 20% of Belgian population like dogs and there is a industry organised over dogs (foods, pension, care, equipment). In the same times, we take the opportunity that belgian people rather spend time in tea room than in café/bar. Our second competitive advantage is our location. Brussel is a city that offers a lot of green spaces and people like it. With this requirement, we found a house in the area of Etangs d’Ixelles and the Abbaye du bois de la Cambre. This location allows us to be close from students, young workers and families. Customers could then walk with dogs in the park of Abbaye du bois de la Cambre. The layout of the house and its decoration favour an intimate atmosphere; sober colors and small rooms with a terrasse and a garden without overlooked. Our last competitive advantage is the social corporate responsibility that our project has. The dogs in our café are abandoned dogs and come from associations. The goal is to find new home for them and to raise awareness among the situation. We have also the willpower to use fair trade and local products.

4.3. Our strategy Our strategy is designed to accomplish four key objectives : 1. Develop a fair and responsible project.

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Business plan: Dog Café

2. Create a community 3. Achieve a sustainable growth while respecting the animal wellbeing. 4. Develop the project and purpose different activities with our dogs and also with dogs and their owners. Overview The purpose of this dog café is to be in the spirit of the times and to be responsible. We want to work as much as possible with the local community. It is important that our customers are aware of this willpower. We want to build and maintain a strong relationship with our customers. They could follow the story of each dogs we greet on social medias. The trust of our community is essential. Market entry The dog café is located in area where the café concurrency is high. But it is also an area (artistic school, universities, different nationalities, near to European Institutions and avenue Louise) where innovative projects are welcomed. We have to focus on building a strong reputation of responsible company. Growth strategy After the first year, we hope we had build a strong customers basis and community. We would have construct the concept. In a second time, we have different development ideas. The first one is to plan once a week, a canine therapy for disabled people or people with psychological trouble. The second activities is to organise dogs walks with our customers and dogs, and with any dogs owners and their dogs. This is the perfect opportunity to strengthen the relationship with our customers by favouring groups meeting through the dogs. The third project is to sell food and toys for dogs as it is an actual raising market.

5. Marketing plan 5.1. Understanding the customers Visiting a dog café According to our market research, 12% say they will be regular clients and 36% will be occasional clients and 18% are not interested in this project. However, 68% change their opinion if dogs comes from associations. People would like to spend between 30 minutes and 1 hour in our establishment.

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Business plan: Dog Café

The location is important because any respondent answered that he was ready to spend more than 35 minutes to come in our dog café. Catering and prices More specifically over the café project, 56% will drink only coffee, tea, fruit juice, or alcohol. 38% order drinks and little restauration like patisserie, sandwich, salad, and soup. Our customers expect to find the price of drinks between 2 and 4 euro and the price of covers between 3 and 10 euro. People pay attention to the price of drink and food, the café atmosphere, the location, and the friendliness.

5.2. Target customer profile After making some research about different Pet café’s, we can say that there is three main target group: young adults, teens and tourist. With young adults and teens being our primary targets. The people we will most likely reach are dog lovers but who are not in the possibility to own a pet. To the question do you own a pet, 20% of the respondents of our survey said that they do not but would like to. They are our primary targets. As we decided to be in the city, we could eventually reach tourists groups by making a tourist attraction of our dog café. Another group we might reach are people who seek for a relaxing moment in some sort of tea room.

5.3. Pricing strategy We decided to have a competition-based pricing strategy. We will adapt our prices with what our competitors are proposing. But we might start some sort of fidelity card in order to reward regulars customers. One example of a café that we could inspire our menu is “le new chatouille”.

5.4. Communication strategy - year 1 In the first year of our communication strategy we will focus on a brand promotional campaign to a targeted audience. These promotional methods consists of the specific blend of advertising, public relations, personal selling, sales promotion, and direct marketing tools. Mass Media advertising We will use advertisements (posters, bus shelters, public venues, other urban adverts, local newspaper/radios) to reach out the primary targeted audience. All advertisements would be repeated

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Business plan: Dog Café

once a week to persuade customers to visit the dog café and keep the brand in people’s memory. These ads will also make calls to actions and include Jadasko’s official website and social media platforms. Public Relations (PR) Public relations will be used in order to build Jadasko’s image and reputation. As well as, promote the Cafe to make us known and therefore create brand awareness. As part of public relations and publicity Jadasko’s Cafe will engage in CSR. This engagement can also help financially dog rescue centres. By telling the public the positive attributes of our Cafe, this could have a positive impact and make publicity as well as increase our sales and profit. Word of mouth (WOM) Word of mouth is the most valuable source of marketing. This advertising can be positive or negative. People trust more recommendation from someone that they know rather than traditional advertising. Therefore, we will encourage word of mouth by highlighting our corporate social responsibility effort towards our financial support to dogs shelter and dogs adoption. In addition, we will identify organisations and influencers that will promote us. Personal selling Personal selling is the most effective tool to interact with customers when they visit the dog cafe. This create an emotional connection and foster a relationship with the customer in short and long term. The good use of this tool can promote our reputation and could receive positive publicity through word of mouth advertising.

5.5. Sales strategy Our café will use several techniques in order to make as much profit as possible. We will try to find distributors combined by the fact that we will have a very restrictive menu will allow us to be profitable easier. When we will be more profitable will start to expand the menu. Another thing is that we will try to focus on our basis of regular customers. This will be done by giving fidelity card that will guarantee bonuses that increases with the time. We will also control our waste and try to find out what kind of stocks we really need.

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Business plan: Dog Café

5.6. Communication strategy - year 2-5 In the second year we will have to continue our customer development. Thereby, we will continue our mass media advertising, public relation and encourage word of mouth. However, as we are going to sell dogs food products and accessories we will focus on personal selling. We will also focus on direct marketing to maintain lasting relationship with current and future customers. As well as, advertise/promote a new product/service and communicate informations to our targeted people through direct mailing or newsletters. In the third to fifth year, we will continue to focus on personal selling, by innovating and generating new sales leads with more attractif/advantageous sales promotions and small selling events in the Cafe. In addition, based on the customers acquired in the first and second year we will heightened Direct marketing. To keep alive the relationship bringing value to the cafe and adapt to market demands we will maintain regular publicite but less intensively compared to the two first years.

6. The team ● Joachim Davain : co-founder and Sales & Operations manager ● Justine Pedretti : Co-founder and Communication & Marketing manager. ● Astrid Gerling : co-founder and Project Developement & Manufacturing. ● Jada et Dasko : are the mascot of our project. They are respectively the dogs of Astrid and Justine. They are the constant dogs that our customers can find in our establishment. ● Veeweyde-Société Royale Protectrice des Animaux-Ko : is a society protecting animals located in Anderlecht. They have several centers in Belgium (Anderlecht, Coutisse, Tournai et Turnhout). They take in 1.000 animals in their centers. This association provides us dogs. They insure the well being of our dogs. In exchange of their dogs, we pay in an amount of money each month.

7. Operations 7.1. Operation strategy Every function of the café will be achieved in the house that we will rent. We identify two main functions: take care of the dogs and take care of the café itself . for the dogs we will have to buy

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Business plan: Dog Café

specific products (toys, basket, etc.) and food. Our team will take care of the rest of the dogs related activities. To continue with the café function, as mentioned earlier we will work with local farmers in order to build a sustainable relationship with them and our customers. We decided to take the help of a chef but the three of us will take care of the services and of the cleaning activities.

7.2. Development timeline Year one; Starting up Month

Projects

May

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Writing the business plan

June

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Getting investment and financing

July

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Following a drink debitor training Apply for an operating licence (3 weeks in advance)

August

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Obtaining the operating licence

September

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Finding local producers and asking for costs estimation Creating the moral society

October

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Creating a website

November

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Launching the communication and marketing Signing the rent house Buying the equipment

Decembre

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Layout the house (catering, kitchen, dog room) and decoration First contact with dogs from association

January

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Opening

Year 1 to 3; time to growth Year

Project/activities

Year 1

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Creating a community and a strong customers basis Setting up a relationship with our customer Becoming profitable

Year 2

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Being profitable Continuing the development of our customer basis

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Business plan: Dog Café

Year 3

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Organising dogs walks and strengthening relationship with our customers

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Selling food, toys, care products, and accessories for dogs Organising dog therapy

8. SWOT Analysis 1. Strength -

Innovation : we are the first one in Belgium (the closest dog café in in Lille and Paris).

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People knows already the concept with the numerous cat cafés in Brussels.

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We offer terrasse and garden (and the park) for playing with dogs

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Our social responsibility (dog association, local producer)

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