Dog kennel business plan PDF

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Document outline of how to create a business plan...

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Legal Page Confidentiality Agreement The undersigned reader acknowledges that the information provided by _______________ in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _______________. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to _______________. Upon request, this document is to be immediately returned to _______________. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a business plan. It does not imply an offering of securities.

Table of Contents

1.0 Executive Summary Chart: Highlights 1.1 Objectives 1.2 Mission 1.3 Keys to Success 2.0 Company Summary 2.1 Start-up Summary Table: Start-up Table: Start-up Funding Chart: Start-up 2.2 Company Ownership 3.0 Services 4.0 Market Analysis Summary 4.1 Market Segmentation Table: Market Analysis Chart: Market Analysis (Pie) 4.2 Target Market Segment Strategy 5.0 Strategy and Implementation Summary 5.1 Competitive Edge 5.2 Marketing Strategy 5.3 Sales Strategy 5.3.1 Sales Forecast Table: Sales Forecast Chart: Sales Monthly 5.4 Milestones Table: Milestones 6.0 Web Plan Summary 6.1 Website Marketing Strategy 6.2 Development Requirements 7.0 Management Summary 7.1 Personnel Plan Table: Personnel 8.0 Financial Plan 8.1 Important Assumptions Table: General Assumptions 8.2 Break-even Analysis 8.2 Break-even Analysis Table: Break-even Analysis Chart: Break-even Analysis 8.3 Projected Profit and Loss Chart: Profit Monthly Table: Profit and Loss 8.4 Projected Cash Flow Table: Cash Flow Chart: Cash

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8.5 Projected Balance Sheet Table: Balance Sheet Table: Ratios Table: Sales Forecast Table: Personnel Table: General Assumptions Table: Profit and Loss Table: Cash Flow Table: Balance Sheet

15 15 16 1 2 3 4 5 6

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1.0 Executive Summary

Cove Lake Labradoodles is a family owned & operated Australian labradoodle and bernadoodle breeder on 8 acres of land in Asheville, NC offering multi-generational puppies. An Australian Labradoodle is a highly sought out hypoallergenic family friendly breed. Cove Lake Labradoodles provides an array of services aside from puppy adoption along with a guardianship program, allowing clients to adopt or care for retired dogs, puppy and companion animal training services, and stud services. Cove Lake Labradoodles will compete directly with kennels in the surrounding area but offer superior service. The Creature Nannie is a doggie foster family arrangement in Sara Sloth's home. When customers leave their dog at the Sloth's home it is surrounded by people all day, has its own bed, is taken for walks twice a day, and has a one acre fenced-in backyard to explore. The Creature Nannie is a superior alternative to a kennel because the dogs get attention all day, have plush facilities, and have ample opportunities to exercise. The guest dogs can even sleep in the children's rooms (in the bed under the sheets if they choose). Basically, the dogs become a temporary member of the household. The Creature Nannie is able to offer this specialized attention because they are equiped to handle only four dogs at a time. The Creature Nannie will compete directly with kennels but offer a superior service. Once word gets out about The Creature Nannie, the schedule is forecasted to be near capacity within the first eight months. The Creature Nannie will reach profitability very quickly and will generate revenues of $18,000 by year three.

Chart: Highlights

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1.1 Objectives The objectives for the first three years of operation include: ● ● ●

To create a service-based company whose goal is to exceed customer's expectations. To increase the number of clients by 20% per year through superior performance and word-of-mouth referrals. To develop a sustainable home business surviving off its own cash flow.

1.2 Mission The Creature Nannie's mission is to provide the customer with the finest foster care service for their canine companion. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers. 1.3 Keys to Success The Creature Nannie's key to success is building a loyal and vocal customer base. 2.0 Company Summary The Creature Nannie is a foster care service for dogs. When a customer is going on vacation all they need to do is drop off their dog at The Creature Nannie and the dog lives with the Sloth family, who cares for the dogs in their house. The animal is played with, exercised, and in general treated like family at The Creature Nannie. Sara's home and The Creature Nannie is located in Eugene, OR. 2.1 Start-up Summary The Creature Nannie will incur the following start-up costs: ● ● ● ● ● ● ● ●

Computer system with CD-RW, printer, Microsoft Office, and QuickBooks Pro. Four large dog cages. Four dog beds. Eight water/food bowls and assorted dog toys. Variable room gates. Two dog leashes. Doggie treats. Pooper scooper for poop patrol.

Table: Start-up

Start-up Requirements Start-up Expenses Legal

$500

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Website development Other Total Start-up Expenses

$300 $0 $800

Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets

$4,200 $0 $0 $4,200

Total Requirements

$5,000

Table: Start-up Funding

Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required

$800 $4,200 $5,000

Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets

$0 $4,200 $0 $4,200 $4,200

Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities

$0 $0 $0 $0 $0

Capital Planned Investment Sara Investor 2 Other Additional Investment Requirement Total Planned Investment

$5,000 $0 $0 $0 $5,000

Loss at Start-up (Start-up Expenses) Total Capital

($800) $4,200

Total Capital and Liabilities

$4,200

Total Funding

$5,000

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Chart: Start-up

2.2 Company Ownership The Creature Nannie is a sole proprietorship founded and owned by Sara Sloth. 3.0 Services The Creature Nannie offers foster canine care service in the home of Sara Sloth. The dogs remain at Sara's house and are never left home alone for more than three hours. The dogs receive two walks a day and have access to a one acre fenced-in back yard. The dogs are able to sleep in a family member's bedroom or in the basement. Each dog get use of their own doggie bed. Sara can care for up to four dogs at once and charges $20 a day or $100 a week. 4.0 Market Analysis Summary The Creature Nannie will develop a loyal customer base through the use of a simple initial advertisement in the Human Society newsletter, strategic alliances with veterinarians, and a word-of-mouth referral system. While this approach might seem a bit egotistical, based on the current service offerings for places to care for your canine, The Creature Nannie is warranted in being a bit proud and assuming. Their service offering is unique and superior and will develop a loyal customer base quickly.

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4.1 Market Segmentation The Creature Nannie's target market are people who truly look out for their dog's best interests and can afford a pet foster family. Dog kennels are sufficient in terms of the care of a dog while someone is on vacation, however, the canines are never truly happy. This is quite understandable, you would not like to be locked up in a sterile cage setting around lots of other dogs who are upset and vocal about it. Dogs from kennels typically come back dirty, with a strained voice, and quite unhappy. Most people write off the experience as an unavoidable cost of owning a dog and traveling. The Creature Nannie is targeting the market of people that believe there should be another alternative for the care of their dog. The other component of the target market is the customers must have enough money to cover the difference in cost, up to 80% more a day than a kennel. Not everyone can afford this price variance. The typical customer will have a household income above $60,000. Table: Market Analysis

Market Analysis Potential Customers

Growth

Dog owners Other Total

9% 0% 9.00%

Year 1

Year 2

Year 3

Year 4

Year 5

17,876 0 17,876

19,485 0 19,485

21,239 0 21,239

23,151 0 23,151

25,235 0 25,235

CAGR 9.00% 0.00% 9.00%

Chart: Market Analysis (Pie)

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4.2 Target Market Segment Strategy The Creature Nannie believes that their service is so distinct and valuable, with no competition, that little will be needed to build a customer base other than faithfully providing their service. The Creature Nannie will be working with respected veterinarians as well as placing an advertisement in the Human Society newsletter as the means of communicating The Creature Nannie's availability to the general public. These will be the only strategies used to develop a loyal customer base. 5.0 Strategy and Implementation Summary The Creature Nannie will rapidly build a loyal customer base as their service exceeds customer's expectations. The Creature Nannie will leverage their special program that allows the dogs to stay in the Sloth's home receiving constant attention to build a strong word-of-mouth referral system that will develop a strong demand. 5.1 Competitive Edge The Creature Nannie's competitive edge is the ability to have the dog stay at a person's home who will be around most of the day to exercise the dog as well as take them on walks and allow the pet to wander around a one acre yard. All other alternatives do not provide anything close to the amount of personal time spent with the dog. Dogs leave The Creature Nannie perfectly content. They are rarely upset about being left with a foster family. 5.2 Marketing Strategy The Creature Nannie marketing approach will be using guerrilla marketing tactics in order to be as cost effective as possible. The Creature Nannie will run an advertisement in the Humane Societies local chapter's newsletter. In addition to this, Sara will speak with several well-respected veterinarians and provide them with several free day coupons. This will be done to develop business that will then report back to the veterinarian. Once a good review is passed back to the veterinarian, this will become a good source of customers for two reasons, 1) people typically ask their veterinarian for referrals for pet-related service providers, 2) veterinarians are very likely to recommend a foster care setup as they clearly recognize its benefit relative to the other service offerings. Once The Creature Nannie has received initial business it will not take long before very little marketing will be needed to fill up Sara's schedule. Lastly, a website will be developed as a tool to communicate information about The Creature Nannie to information seekers. 5.3 Sales Strategy The sales strategy will be to develop a list of happy past customers (not difficult) who are willing to act as referrals for The Creature Nannie. Once this list is developed, their names will be given out when a prospective client calls. The advantages of pet foster care are so obvious relative to kennels that it will not be difficult to sign people up. The flip side to this demand is

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that in order to maintain all of these advantages, the operation must stay small (maximum of four dogs) so there will not be the possibility of growing the operation beyond its capacity. 5.3.1 Sales Forecast The first month will be used to set up the space for the dogs, submit the advertisement in the Humane Society newsletter, and form alliances with a few veterinarians. Beginning in month two there will be some business. Things will grow for a few months until mid year when the bulk of the week will be at capacity. Table: Sales Forecast

Sales Forecast Year 1

Year 2

Year 3

$12,880 $0 $12,880

$17,000 $0 $17,000

$18,000 $0 $18,000

Year 1 $258 $0 $258

Year 2 $340 $0 $340

Year 3 $360 $0 $360

Sales Dog owners Other Total Sales Direct Cost of Sales Dog owners Other Subtotal Direct Cost of Sales

Chart: Sales Monthly

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5.4 Milestones The Creature Nannie will have several milestones early on: ● ● ● ●

Business plan completion. This will be done as a roadmap for the organization. This will be an indispensable tool for the ongoing performance and improvement of the company. Set up the facilities. Initial strategic development complete. Full capacity reached.

Table: Milestones

Milestones Milestone Business plan completion Set up the facilities Initial strategic development complete Full capacity reached Totals

Start Date 1/1/2001 1/1/2001 1/1/2001

End Date 2/1/2001 2/1/2001 2/1/2001

Budget $0 $0 $0

Manager ABC ABC ABC

Department Marketing Department Department

1/1/2001

8/31/2001

$0 $0

ABC

Department

6.0 Web Plan Summary A website will be developed to provide a source of information to prospective dog owners. In essence it is The Creature Nannie's version of a brochure. For serious inquiries, a list of referrals is available on request. The site will have information and pictures about the owners and their qualifications, the license and bonding information, the facilities, and the services such as walks, and medication dispersement. 6.1 Website Marketing Strategy The website will be marketed very little, it will be used more as a resource that Sara can point people to. 6.2 Development Requirements A student from the University of Oregon's computer science department will be tapped to provide the website development. 7.0 Management Summary Sara Sloth has a degree in marketing from the University of Oregon. Throughout her four years at Oregon, Sara worked part time (full time in the summers) at a veterinary clinic. She chose this because of her love for animals, in particular dogs. Upon graduating Sara went to work for Funk & Associates, a local marketing/PR firm. Sara spent a few years full time at Funk at which point she and Tom, her husband decided to have children. She was able to work out an arrangement where she could work part time for Funk from her home while raising her children (she eventually had a second a year later). It has been six years now and the children are five and six years of age.

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Now that the children are considerable less maintenance, Sara was looking for another source of income to supplement the part time contract work with Funk. The Sloth's had a dinner party one evening and one of their guests had commented that their dog had just returned from a kennel and was pretty unhappy. This is when the idea clicked that she could offer a dog foster family set up from her home that would supplement her income, satisfy her love of animals, and not interfere with her responsibilities with the family and Funk. The Creature Nannie was born. 7.1 Personnel Plan Sara will be the only employee. Table: Personnel

Personnel Plan Year 1

Year 2

Year 3

Payroll Other Total People

$12,000 $0 1

$12,000 $0 0

$12,000 $0 0

Total Payroll

$12,000

$12,000

$12,000

8.0 Financial Plan The following sections will outline important financial information.

8.1 Important Assumptions The following table details important financial assumptions.

Table: General Assumptions

General Assumptions Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other

Year 1

Year 2

Year 3

1 10.00% 10.00% 30.00% 0

2 10.00% 10.00% 30.00% 0

3 10.00% 10.00% 30.00% 0

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8.2 Break-even Analysis The Break-even Analysis indicates that approximately $1,400 will be needed in monthly revenue to reach the break-even point.

Table: Break-even Analysis

Break-even Analysis Monthly Revenue Break-even

$1,259

Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost

2% $1,233

Chart: Break-even Analysis

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8.3 Projected Profit and Loss The following table will indicate projected profit and loss.

Chart: Profit Monthly

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Table: Profit and Loss

Pro Forma Profit and Loss Year 1

Year 2

Year 3

Sales Direct Cost of Sales Other Production Expenses Total Cost of Sales

$12,880 $258 $0 $258

$17,000 $340 $0 $340

$18,000 $360 $0 $360

Gross Margin Gross Margin %

$12,622 98.00%

$16,660 98.00%

$17,640 98.00%

Payroll Sales and Marketing and Other Expenses Depreciation Leased Equipment Utilities Insurance/ license/ bonding Rent Payroll Taxes Other

$12,000 $1,000 $0 $0 $600 $1,200 $0 $0 $0

$12,000 $600 $0 $0 $600 $1,200 $0 $0 $0

$12,000 $600 $0 $0 $600 $1,200 $0 $0 $0

Total Operating Expenses

$14,800

$14,400

$14,400

Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred

($2,178) ($2,178) $0 $0

$2,260 $2,260 $0 $678

$3,240 $3,240 $0 $972

Net Profit Net Profit/Sales

($2,178) -16.91%

$1,582 9.31%

$2,268 12.60%

Expenses

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8.4 Projected Cash Flow The following chart and table will indicate projected cash flow.

Table: Cash Flow

Pro Forma Cash Flow Year 1

Year 2

Year 3

$12,880 $12,880

$17,000 $17,000

$18,000 $18,000

$0 $0 $0 $0 $0 $0 $0 $12,880

$0 $0 $0 $0 $0 $0 $0 $17,000

$0 $0 $0 $0 $0 $0 $0 $18,000

Year 1

Year 2

Year 3

$12,000 $2,833 $14,833

$12,000 $3,361 $15,361

$12,000 $3,706 $15,706

Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent

$0 $0 $0 $0 $0 $0 $0 $14,833

$0 $0 $0 $0 $0 $0 $0 $15,361

$0 $0 $0 $0 $0 $0 $0 $15,7...