BUAD Business PLAN - Grade: B PDF

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Senor Bulldogs Andres E. Pelaez Nick Korvi Jose Moreno Simone Oram California State University, Fullerton

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Table of Contents

I Executive Summary ………………………………………………………………………………………………… 3-4 II Products and Services …………………………………………………………………………………………………… 5 III Marketing Plan ………………………………………………………………………………………………… 6-9 IV Management and Organization ………………………………………………………………………………………………. 10-12 V Operational Plan ………………………………………………………………………………………………. 13-14 VI Financial Plan ………………………………………………………………………………………………. 15-16 VII References ………………………………………………………………………………………………. 17-18 VIII Tables ………………………………………………………………………………………………. 19-20 IX Figures ………………………………………………………………………………………………….. 21 X Appendices ………………………………………………………………………………………………….. 22

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Executive Summary In Senor Bulldogs, we promise to deliver the best, healthiest dogs we possibly can. We prioritize quality over everything. Our vision for the company is to be the best at providing high quality, well maintained French Bulldogs at a competitive price.

Our target customers are upper-middle-class families looking for rare French Bulldogs. The problem is that since after the recent law that prevented pet stores from selling dogs, finding well taken care of puppies has become a challenge for most. We want to solve this by providing our customers with exquisite French Bulldogs at a competitive price.

Our team sees the business continually expanding through the years. The main goal that will never change is to breed healthy puppies and spread love to our customers continuously. Through the use of social media, networking, and successful marketing, our 3-5 year goal of attracting customers from not only orange county but all over the country can be attained.

French bulldogs are luxury products which is why we will focus on customers in the middle to upper classes. Our target market will mainly consist of upper-middle-class families that are interested in buying a pet.

Our entire management has gained experience by owning dogs throughout their entire lives, are affluent dog lovers, educated college graduates, and the CEO previously ran a successful dog breeding business by himself. Each employee encompasses different valuable aspects of creating and maintaining a successful business.

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We are asking for a $12,000 investment for a 15% share in our company to cover our startup costs which include buying the parent French Bulldogs. This will make our business highly profitable since we won't have high costs after our initial investment. Also, this will help Senor Bulldogs expand over the years since the profits can be reinvested in purchasing more dogs; hence multiplying our earnings.

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Products and Services At Senor Bulldogs, we will be selling ethically bred healthy puppies. Our product is unique in the way we as a team run our business. By making sure we raise the puppies with love and care, they grow up to be perfect pets, and our clients will always be satisfied.

We will be producing a differentiated product since French bulldogs are considered a rare breed. By having a unique product, we can be sure to maximize profits compared to if we sold common breeds such as a Labrador Retrievers.

Our products will focus on quality in every aspect — health, up to date vaccinations, and wellgroomed French Bulldogs. We have two main elements that distinguish our products from our competitors. One is that we are taking extra good care of the puppies while they are being raised to ensure that they are well behaved, and house fixed. In return, this will guarantee that our clients are happy when receiving their puppy. The next element that distinguishes us is that we raise rare French Bulldogs that have a low supply and high demand in the market. By selling high quality, high-end products, we will be sure to maximize our profits.

Each of Senor Bulldog’s employees has 10+ years’ experience with raising dogs which adds to the value of our service. It is especially important that everyone on the team has experience in animals, especially dogs.

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Marketing Plan The market is characterized as a costly market that requires a lot of upfront costs. The dog breeding market is also unsaturated, making it easy for us to make an entry into the breeding marketing without too much risk.

Market segmentation is especially important when businesses try to personalize their marketing campaigns to target specific target markets. Our target demographics are upper-middle-class families and pet lovers that live in the city of Fullerton. By arranging our target into groups, Senor Bulldogs can target each potential client individually; hence being more time and cost efficient. This will also reduce any risk of ineffective marketing campaigns as this could financially hurt the business in the beginning.

The dog breeding market is currently in a slump due to a recent law which banned Pet Shops from selling dogs. This has opened the market to dog breeders. Dogs are always in demand, but with the new law, the supply substantially decreased. This is a great strength in our business and an opportunity to significantly increase profits in a matter of years.

The growth potential for these segments are prevalent when looking at them individually. Uppermiddle class families in Fullerton is the first segment that we are targeting. This market proportion will afford buying our specialized products without facing a financial burden. This is especially important for our Senor Bulldogs since the French Bulldogs that we are selling are by no means affordable. The second market segment is animal lovers, specifically dog enthusiasts.

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This is also an important proportion since our target market has to have a special desire to have this certain product since it’s rare and pricey.

Some of the potential threats that Senior Bulldogs can face are diseases, deaths of puppies, and stolen merchandise. These could significantly impact our profits since losing one dog will bottleneck the production of creating more products, which are puppies. Stolen merchandise can be more easily remedied; however, it is still a financial burden that can negatively affect our business.

Some potential opportunities include having a distinguished product and self-generating money from an initial investment. By selling specialized French Bulldogs, we can passively generate income since the only big spending’s is when buying the parent dogs. Afterward, the female French Bulldog can be impregnated multiple times; thus, generating passive income.

In our Porter’s Five Forces of Competitive Position, we have supplier power, new market entrants, competitive rivalry, buyer power, and product and technology. For supplier power, we have suppliers raising the price of French Bulldogs, scarcity of French Bulldogs, the quality of French Bulldogs, and the relationships with suppliers impacting the cost of the dogs. For new market entrants, it is difficult for rivals to enter the market. There has also been a law passed in California that prevents pet stores from selling dogs.

Regarding buyer power, there is specific breeds and details that customers look for when choosing a dog to purchase. There are thousands of competitors which give the customer a significant amount of power when negotiating. The way we plan on countering that will be by justifying our prices with the quality dogs we are providing. For product and technology development it is clear that social media will be critical to the development of the brand. 7

Regarding competitive rivalry, there are thousands of local breeders which does complicate bringing in customers. Other breeders will be selling other distinguished products and have more experience in the industry. We at Senor Bulldogs will be working day and night to top any competitors.

Smaller French Bulldogs are more desirable to customers. Customers will also make sure that the puppies have all the vaccinations required and that they are in good health. The trend that I see that people are going for quality and are accepting the high prices for French Bulldogs. One of the key drivers of change in our industry is price. If other competitors are selling the same type of dog but at a lower price, we might have to accommodate.

An advantage our business has is that it will not have any issues in regard to zoning, environmental laws, or inspections. This is especially important when looking at our geographical location and demographic information.

Our customers will be anyone who is in search of a healthy, irresistible French bulldog. Even individuals who are not in search of a dog may fall in love when looking at our posts online. There will be two main things that we will be selling. One to will be would French bulldog puppies. The other product we will be selling is the sperm from the stud which will get sold to the vet.

Since a law passed in California which prohibited Pet Stores from selling puppies, customers have been forced to come to dog breeders. That law created a tremendous opportunity to dog breeders, and we at Señor Bulldogs will seize that opportunity.

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When looking at customer retention, it is difficult to retain a customer since buying a dog is not something that is done regularly. What will help tremendously is word of mouth from our customers. Our company will be using different marketing channels to reach out to potential customers to increase retention, Facebook, Instagram, Snapchat, YouTube, and Yelp will be used to increase sales and awareness.

Our puppies will be posted on all our social media platforms. On our social media platforms, customers can message us directly or click our link which will take them to our website. When we sell a puppy to a customer, they will need to sign a contract which gives them the full responsibility of the dog and excuses us from any liabilities. Most French Bulldogs go for $2,000-$7,000. This depends on the locations, and which breeder you are purchasing from. Our price will be set in the middle of that price point at $4,000.

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Management & Organization

Biographies

Jose Moreno: Jose is a trustworthy person. He is a highly motivated individual that always seeks to excel in everything he does. Jose has many years of experience in running social media. He has worked with franchises like Rocking Jump OC and Rocking Jump San Dimas.

Nick Korvi: Nick Korvi has traveled around the world. He brings a cultural knowledge of different markets that are learned through experience traveling. He has experience managing large quantities of money through internships.

Andres Pelaez: Andres is experienced in the dog breeding business. He has a relationship with a mentor who helps along the way. He is a natural born leader with a passion for bulldogs. He has been an entrepreneur since he was young, launching many businesses throughout the years.

Simone Oram: Simone has owned dogs since the day she was born. She is very experienced in the care of dogs with having owned and cared for them for 22 years.

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Organization Chart

1.) Andres Pelaez: As the CEO Andres will be in charge of developing and executing the companies vision. As part of his duties he will organize the company in order to allow it to grow and flourish. He will also partake in Networking/sales activities.

2a.) Nick Korvi : Nicks responsibilities as the CFO will make sure the company is prospering financially. He will be in charge of creating a budget, pricing our puppies, decide how to best invest the companies money, etc.

2b.) Simone Oram: All the day to day activities will be the responsibility of Simone (COO). These activities include things like feeding, walking, playing, and taking care of the dogs. During other times of the business like when the dog is in heat or when someone orders stud service she will be in charge of fulfilling those obligations as well.

2c.) Jose Moreno: Jose will be in charge of all the Marketing,Social Media, advertising, and promotion of our dogs. He will post daily on social media to engage with our customers and keep them up to date on whats happening in our kennel. Photoshoots will be conducted by him in order to have the best quality pictures.

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Continuation Plan

If key founders left the business or were left permanently incapacitated then they would get to keep their share of the company. Advisors

Mentors and other advisors

Mentor: Samuel Garcia will consult us when problems arise in the business

Consultants: We have access to many small business resources centers where there are consultants in orange county.

Accountant: Our accountant will make sure our books are in good shape come tax season. Lawyers: Lawyers will hep us with any legal issues along the way.

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Operational Plan

1. Impregnating the dog a.

The very first and most important task prior to doing anything is

making sure the male and female dogs are in good health in order to protect both the dogs and the future puppies. This includes shots, vaccines, and an overall check. b.

Wait for the heat cycle. This is the stage when the female dog can

reproduce. It occurs 6-24 months after being born. c.

Progesterone tests will be given to help predict the best time to

breed d.

Once dog has reached progesterone levels of 5mg/ml, the

veterinarian will artificially inseminate the female dog using the male dog’s sperm

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Upkeep of pregnant dog a.

During the first six weeks of pregnancy she will be fed her normal

amount of food and participate in gentle exercise daily b.

6 weeks till the end of pregnancy she will be fed a high-calorie food

and gentle exercise c.

During the 7th week she will be taken to the veterinarian to evaluate

her overall health and set a plan for C-section 13

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As her delivery date approaches, she will be watched very close to

detect symptoms of labor. These symptoms include a drop in temperature, vomiting, and loss of appetite. When these symptoms occur, she will be taken to the veterinarian to be given a C-section.

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Upkeep after birth a.

Mother will be put in a cool dark room to recover and fed warm milk

for the first two days and return to her normal diet. She will be separated from her puppies to prevent the risk of smothering them to death.

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Puppies a.

Post photos and detailed description of the puppies on company

website and social media platforms b.

During the first week the puppies will be fed every 2-4 hours and

checked on every hour. c.

During weeks 2-6 the puppies will be fed every 5-6 hours

d.

The puppies will receive their shots once they are a month and a

half old e.

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The puppies are ready to be sold after 2 months

Repeat *All tasks will be posted on an organized monthly schedule and allocated amongst the entire staff

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Financial Plan We plan to offer a 15% share of our company to investors for a $12,000 investment. With this investment we plan to purchase 2 male and 1 female French Bulldog. Each dog is estimated to cost $4000, so the investment should be more than sufficient to cover the startup costs that are incurred. Our desired debt is below $5000 biannually. If we can keep our expenses at this level, we can see profits as high as $70,000 annually (Balance sheet). Since our only major costs are going to be initial investments in dogs and vet fees, we only risk losing around $5000 biannually. This means that we can operate without worrying too much on failing.

There are external and internal factors that might affect our financial projections for Senor Bulldogs. Internal factors consist of diseases, dogs dying, and inadequate care for the dogs. Our business can minimize these risks by making sure to provide the dogs with extra care throughout their development. External factors may involve a low demand in dogs, high market saturation, and poor economy. These factors are harder to minimize; hence require careful examination before entering the market.

Senor Bulldogs plans to conduct sales forecasts and biannual balance sheets to analyze our performance throughout the year. This will ensure that the business is on track and that profits are well over expenses. By continuously checking up on this, the business will continually increase profits as more dogs are purchased. By performing on a high standard, the business will aim to multiply profits every 2 years until reaching a peak of $120,000 biannually. Once the business reaches this level, we can start expanding to different countries and incorporate the business.

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Senor Bulldogs conducted a balance sheet that represents the different expenses the business incurs biannually. The income section depicts of the final product, being when the French bulldog is ready to be sold. The different expenses are the split into biannual and periodic expenses.

The biannual expense section signifies the different costs that our business will incur. A portion of the expenses are direct costs that are only incurred during the start of the fiscal year. These involve dog accessories, breeding handbooks, progesterone tests, surgical inseminations, and the AKC paperwork. The other portion are cost that are incurred every month. These costs involve dog food, vet fees, and gas/electricity.

After the expenses have been reduces from the income, the company projected a revenue is around $6,700 biannually. If our business operates at a normal pace, we will be seeing increasing profits as we invest in more dogs to breed.

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References “They're incredibly cute, but they're not cheap. FORBES interviewed nine French bulldog breeders and owners and found the price of a Frenchie puppy ran from $2,000 to $7,000 “

Sola, K. (2016). French Bulldog Puppies: Inside The Business Of Breeding New York’s Most Fashionable

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McGreevy, P. D., & Nicholas, F. W. (1999). Some practical solutions to welfare problems in dog breeding. ANIMAL WELFARE-POTTERS BAR-, 8, 329-342.

http://www.terrierman.com/mcgreevey-some-practical-solution-dog-breeding.pdf

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Bateson, P. (2010). Independent inquiry into dog breeding. Bateson.

https://www.researchgate.net/profile/Patrick_Bateson/publication/266277147_Independent_Inquiry_into_Dog_Breeding/li nks/54b399bb0cf28ebe92e2ee00.pdf

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Peña, F. J., Núñez‐Martínez, I., & Morán, J. M. (2006). Semen technologies in dog breeding: an update. Reproduction in Domestic Animals, 41, 21-29.

https://onlinelibrary.wiley.com/doi/full/10.1111/j.1439-0531.2006.00766.x

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Leroy, G., & Baumung, R. (2011). Mating practices and the dissemination of genetic disorders in domestic animals, based on the example of dog breeding. Animal genetics, 42(1), 66-74. https://onlinelibrary.wiley.com/doi/full/10.1111/j.1365-2052.2010.02079.x

Simones sources

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Arkow, P. (2004). Animal-Assisted Therapy and Activities (9th edition). Stratford, NJ.

http://ufsocial.jou.ufl.edu/2016/06/french-bulldogs-taken-internet/

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Byrd, Briannan. (2012). Human-Canine Relationships: Dog Behavior and Owner Perc...