Business Plan Idea:

PET SPA

COMPANY NAME:
Tagline: Place of Operation: Company Address: Ph: Email: Company website:

PET PALS

Your pets favorite hangout..! Ernakulam PET PALS, Kalamassery, Ernakulam 7403539892 vineethkumar@outlook.com www.petpals.blogspot.com (example)

Table of Contents 1.0 Executive Summary 2.0 Business Description Segment Company summary Start up summary Table start up 3.0 Marketing Segment Market analysis Target market segment Market segmentation 5.0 Strategy and Implementation Summary Summary Competitive Edge Pricing Strategy Advertising and promotion Table: Milestones

6.0 Milestones Schedule Milestones table 7.0 Personnel/ Management Segment 8.0 Operations Segment 9.0 Financial Segment Start-up Funding Table: Start-up Funding Projected Profit and Loss Table: Profit and Loss 10. Critical Risk Segment 11. Harvest Strategy Segment 12. Bibliography

1.0 Executive Summary

PET PALS is an exciting new business that allows customers who have disposable income and the desire to provide quality care for their pets including pet sitting services while they are at work. It is a response to a real market need in a high-end high-income market. The need for such a business venture is ushering in the market and there are no companies presently doing this business. This business proposition aims at customers of the upper income group with disposable incomes who yearn to give quality treatment and spa services to their pets. We will be the leaders in the market of pet care for the upper income community by providing a positive environment for the animals that we house. Our operations will instill in owners a confidence in our ability to care for their pets in appropriate ways. We will control significant market share and increase profit as we grow and expand. We will develop our business conservatively, financing our growth through operational revenue. OBJECTIVES

1. To enter into the unexplored but in-high-demand business venture 2. Cater to all spa and day care facilities of high end customer pets 3. To launch the business and develop sales approaching Rs. 25000/- per month by the end of the first year. 4. To break even in the second year, and be profitable by the third year. 5. To increase sales by 20% per year in the second and third year while also becoming profitable.
MISSION The main goal of PET PALS is to be one of the most successful PET SPA businesses in Ernakulam, Cochin. Our main focus will be serving high-quality facilities at a great value. To make the customer ultimately satisfied and make them loyal by proper management of customers as retaining the customers are far better than obtaining a new customer. To treat pets to luxury, make them relax, and enjoy our warm, playful and friendly atmosphere.

Keys to Success The initial location will be in an upscale community in the metropolitan area of Cochin. We will cater to the needs of our pet owners as much as possible. We will uphold the statement 'the customer is always right' because when it comes to pets, their owners know best. The business finances will be run in an organized and timely manner.

2.0 Business Description Segment

2.1 Company Summary
COMPANY NAME: PET PALS Tagline: Place of Operation: Company Address: Ph: Email: Company website: Your pets favorite hangout..! Ernakulam PET PALS, Kalamassery, Ernakulam 7403539892 vineethkumar@outlook.com www.petpals.blogspot.com (example)

PET PALS will be established as a Private Ltd. company owned by a single owner and founder, Vineet Kumar V. It will be purely a service based firm. Owners of pets including dogs, cats, birds, guinea pigs, rabbits, etc can leave their pets at PET PALS for a one day treatment of luxury which includes bathing, shampooing, grooming, massaging and other spa facilities which the customer can choose from a wide array of options available to them. In addition to this PET PALS also deliver Pet sitting facilities for our customers who are away from home or those who need their pets to be taken care of while they are at the office. We offer upscale pet owners a place where they can leave their pets while at work, and away for weekend trips or on vacation. It also offers feeding and exercising, as well as washing, grooming and low-level veterinary services. The location will be a large lot on the outskirts of a high-income residential area. Customers pay by the day, by the hour, or by the month.

2.2 Start-up Summary

The start up for PET PALS will be simple and cost efficient. Rent and equipment will be the main expense, which will consist of a large building space (SPA) and office. A building will be hired on lease purpose for the same. An insurance policy will also be taken to tackle with risk propensities in the business. There will be many advertising expenses in the beginning that will promote the service, and this expense will lessen as months go on and people become aware of our service. Start-up inventory will be mainly bathing, shampoo and grooming supplies, food for the pets, and other supplies like bedding, oil etc. Other assets will be the kennels and play structures for the pets, and the bathing facilities.

2.3 Table: Start-up

Bank loans will be needed to start up the company, and we will also be investing some of our own funds. An initial investment Rs. 2, 00,000/- would be required. The breakup of costs is shown below:

Requirements Start-up Expenses Legal (Documents, Registration etc.) Advertising Insurance Rent/Lease Equipment Salaries Total Start-up Expenses Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets Total Requirements Rs. 2,500/15,000/15,000/1,00,000/30,000/20,000/1,82,500

17,500 0 0 17,500 2,00,000

3.0 MARKETING SEGMENT

3.1 Market Analysis Summary
The market for PET PALS is all of the pet owners in the metropolitan area in Cochin and surrounding areas of the city. We believe that this is going to be 1//4th of the population, and we have a goal of gaining a substantial market share. We have a target of a 20% yearly profit increase as the business continues. The target market will be mainly the upper class income group. The reason for income based segmentation is due to the nature of the service offered.

3.2 Target Market Segment Strategy We have chosen our target market as the upper income group because they own costly pets and have the ability to afford a service such as Pet Spa. We are aware that our service is an extra in life, not a necessity. We anticipate and expect to cater to the upper-class citizens within our geographical area. Our familiarity with this business indicates that the service we offer is not currently available anywhere within the metropolitan area of Cochin. Therefore if an additional effort is put for initial advertising of the service, it is sure to click with the targeted crowd. 3.4 Market Segmentation Our target market consists of pet owners that have the financial capabilities to care for their pets in an elaborate manner. Most will be from double income homes with high profile jobs that require an extensive amount of time away from the home. Our target market consists of men and women primarily between the ages of 35 and 65. They live in the upscale suburbs surrounding the metropolitan area. Our market segment customers lead a lifestyle in which their pets play a large part, and these pets are often seen as "children" by their owners.

Table: Market Analysis

Year 1 Potential Customers Growth Pet Owners Others 20% 0% 1500 0 1800 0 2160 0 2592 0 3110 0 Year 2 Year 3 Year 4 Year 5 CAGR 20.00% 0.00%

Total

20%

1500

1800

2160

2592

3110

20.00%

5.0 Strategy and Implementation Summary

Marketing will be dominantly achieved through print media, television ads, social media outlets and website promotions. Social media outlets would include: Facebook, Twitter, Linked In, My Space etc. Traditional advertising on billboards, fliers, and mailers will also be utilized. Discounts and promotions will be given on the company website and promoted accordingly. Sales strategy also includes targeting world events and affairs and capitalizing on news media rich topics and catering to a specific niche under the company brand. PET PALS will focus on the geographical market of upper-class suburbs surrounding the metropolitan area of Cochin. Our initial site will be in Kalamassery, a suburb of Cochin. Our target market consists mainly of men and women in the ages 35-65.

5.1 COMPETITIVE EDGE

PET PALS is the first Pet Spa and Day Care facility of its kind. Never before has there been a place where a pet owner could take their pet to be cared for, for the day. The owner feels no guilt in leaving the dog because it is a secure, safe and fun environment.

5.2 PRICING STRATEGY

Pricing method used will be cost plus pricing. Customers get to choose from an array of services priced according to its cost. Services offered to pets start from Rs. 250 and go up to Rs. 15,000 based on the type and availability.

5.3 ADVERTISING AND PROMOTION

At the beginning stage it is necessary to spend a heavy amount on its promotional activities. As a part of the promotional activities it is intended to Give advertisement through print media, television, company website and social networking websites. Place stalls in popular shopping malls in Ernakulam like Oberon Mall, Bay Pride Mall, Gold Souk, Lulu Hypermarket (which is yet to open shortly) and provide a demonstration/samples of variety services to pets. Distribute notices with many attractive features along with news papers Advertisement in regional television channels Advertisement through theatres in Ernakulam, Cochin

6.0 MILESTONES
The company PET PALS strives to achieve the following milestones in the years to come:

6.1 Table: Milestones

Milestone Lease building Promotional activities Inauguration Commencement of business Opening a new branch in another metro Expansion and Renovation To be known as a popular brand by Start Date 01/08/2013 15/05/2013 01/09/2013 01/09/2013 01/09/2014 01/10/2014 01/09/2015 End Date 01/08/2014

7.0 Personnel/ Management Segment

The Personnel required for this business initially will only be two dog groomers and a manager(which will be the owner himself) The management team will consist only of the owner and founder, Vineeth Kumar. We do not anticipate taking on other managers until locations are opened in other metropolitan areas in the city and outside. As we grow we expect to need outside guidance in the areas of accounting and financial advising.

7.1 Personnel Plan

POSITIONS Dog care assistants/groomers (2 nos.) Administration/Management(1 no.) Total staff Total Payroll

Year 1 20000 0 3 20000

Year 2 22000 0 5 22000

Year 3 26400 0 10 26400

8.0 Operations Segment

The amount of money that will be required for start up operations costs are listed below. In the initial phase a total of Rs. 17,500/- is set apart for the same (Refer to 2.3 Start up cost table)

Operation Costs: Electricity Water Raw Materials Grooming supplies and toiletries Internet, Computer and Billing Petrol Misc. Expenses Rs. Rs. Rs. Rs. Rs. Rs. Rs. 5,000 1,000 5,000 2,000 1,500 2,000 1,000

TOTAL

Rs.

17,500

9.0 Financial Segment

INSTRUCTIONS: Summarize the financial aspects of your business plan. Type your topic text here.

9.1 Start-up Funding

INSTRUCTIONS: Explain where your funding will come from, in what form (as investments and/or loans), and how this funding will cover the start-up requirements outlined in the Start-up table.

Type your topic text here.

Table: Start-up Funding

Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required $0 $0 $0

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

$0 $0 $0 $0 $0

Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Owner Investor Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital

$0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0

Total Capital and Liabilities Total Funding

$0 $0

9.2 Projected Profit and Loss

INSTRUCTIONS: Explain the important points of your Profit and Loss projections, such as percentage increase in sales and profits, your gross margins, and key budget items.

Type your topic text here.

Table: Profit and Loss

Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales Gross Margin Gross Margin % Year 1 $0 $0 $0 $0 $0 0.00% Year 2 $0 $0 $0 $0 $0 0.00% Year 3 $0 $0 $0 $0 $0 0.00%

Expenses Expense 1 Expense 2 Depreciation Rent Utilities Insurance Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0.00%

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0.00%

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0.00%

10.0 CRITICAL RISK SEGMENT

The critical risks that one can encounter in the business are: Preference of Self Care for Pets Customers might not be fully satisfied in leaving dogs at an unknown place initially. Some customers tend to treat pets as their own children and so an element of sentiment and emotion may occur. For this a great deal of advertisement and penetration should be done. A mass audience must be made aware of the internal facilities for their pets at PET PALS centre. Targeting the upper class and penetrating the ideology of business is difficult It is difficult to identify and do door to door business awareness campaign unlike with those other income groups. This class of target market is not very easily accessible. Rise in Pet food prices A heavy rise in pet food prices (e.g.: Pedigree for dogs) might impact the business in a large manner. Entry of new competitors The entry of new, bigger and better competitors might drastically affect the business and also significantly increase costs and put the company to task on profits.

Harvest Strategy Segment

PET PALS is a single owned and operated business. The ownership will be transferred to the next generation. A portion of the profit will be retained for running the business. The business will be developed only out of profits and not out of capital. Innovations will be always included. It will also consistently maintain high safety standards and cleanliness. The health and safety of the Pets which are brought to the organization are the responsibility of the company and any such defaults leading to death or sickness of the pet will be dealt with seriously and compensated for.

BIBLIOGRAPHY: