Business Plan 9-18-12

BUSINESS PLAN
BUBBLE BUDDIES
DO IT YOURSELF PET WASH AND GROOM BUSINESS
SUSAN R. GUTHRIE
109 NORTH TRACE
WILLIAMSBURG, VIRGINIA 23188
757/585-1063
BUDDYBUBBLESSSPW @HOTMAIL.COM
September, 2012
CONFIDENTIAL
&
NOT FOR DISTRIBUTION
TABLE OF CONTENTS
Business Structure
Description of Business (Page #)
Business Organization (Page #)
Management Team (Page #)
The Location (Page #)
The Market
The Product/Service (Page #)
Market Trends (Page #)
The Target Market (Page #)
The Competition (Page #)
Competitive Advantage (Page #)
Market Share Estimates (Page #)
Marketing & Sales Strategy

Pricing & Positioning (Page #)
Sales (Page #)
Advertising and Promotion (Page #)
Operating Requirements
Production of the Product/Service (Page #)
Staffing and Employees (Page #)
Management and Administrative Support (Page #)
Regulatory Requirements (Page #)
The Financial Plan

Forecasted Startup Budget (Page #)
Forecasted Break-Even Analysis (Page #)
Forecasted Twelve Month Cash Flow (Page #)
Forecasted Five Year Cash Flow Analysis (Page #)
Forecasted Five Year Income Statement (Page #)
Forecasted Five Year Balance Sheet (Page #)
The Sources and Uses of Funds

Sources and Uses of Funds Statement (Page #)
Personal Financial Statement (Page #)
Analysis of the Risks and Rewards

Risk Analysis (Page #)
Strategies to Address Risks (Page #)
Attachments (Page #)
BUSINESS STRUCTURE
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Description of Business
Susan Guthrie proposes to startup a do-it-yourself (DIY) pet wash and groom service
with retail pet supplies business. The business will be called Bubble Buddies, LLC, taking
its name from Buddy, the first and sweetest dog that recued me. The business will offer
DIY pet wash facilities, partial and full service grooming services, and retail pet supplies.
Bubble Buddies has been successfully providing Pet Care Services, including pet walking,
sitting, training, and transportation for a sizeable clientele and rescue groups since May
2012. Pet Care Services will continue to be offered by employees of Bubble Buddies once
the shop opens.
All services will be delivered in a traditional DIY pet wash and groom service with retail
supplies setting. We will maintain an office within the facility to serve the administrative
needs of the business. Our facility will be able to accommodate a maximum of twelve (12)
animals at a given time. Key features of the facility include: a small administrative office,
one (1) full service grooming station, four (4) DIY pet wash stations, two (2) DIY dry
grooming stations, five (5) drying kennels, a pet supplies retail area, a cash register
reception desk, one (1) unisex bathroom, a utility closet, and a seating area, within an
approximate 1,500-square foot retail space. In addition, there will be an outside pet rest
area and suitable parking.
Bubble Buddies, LLC will be successful because it fills a unique gap in the marketplace.
Bathing and grooming your pet at home is messy, can be unsafe, uncomfortable, and rarely
a pleasant experience. However, full-service grooming is often too expensive for a lot of
pet owners. Therefore, Bubble Buddies, LLC will provide a clean, safe, comfortable, and
fun atmosphere, where people can groom their own pet or take advantage of partial and
full-service grooming, without the hassle of cleaning up afterwards. DIY, full-service, and
partial grooming will be offered by way of pet washing stations, a full-service groomer,
and pet drying kennels. The owner, staff, and groomer will be able to assist clients with
their grooming needs, including bathing, nail clipping/filing, ear cleaning, and clipping and
shaving. The business will be located in a multi-use development that is convenient for
clients to groom their pets and then leave them to dry while they take advantage of the
adjacent dining, retail, professional, and entertainment opportunities.
Bubble Buddies will provide DIY pet wash and groom service and full-serve grooming
services with retail supplies for the lower, middle, and upper income male and female pet
owners, family pet owner, show dog owner, pet shop, veterinarian, government and
municipal law enforcement, security firm, animal care service, pet trainers, contracted pet
breeder, and rescue group market niche clientele. It will operate six days a week (Tuesday
through Sunday) at least ten hours a day or by appointment.
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Business Organization
Bubble Buddies, LLC will be organized as a Limited Liability Company. This business
organizational structure was chosen because the business will offer investor opportunities,
but will provide limited liability and flexibility to the owner. The Limited Liability
Company generally can be owned by a corporation, can be a part of an affiliated group,
limits the liability of its members, and has fewer corporate regulatory restrictions.
We will do business as Bubble Buddies, LLC and our search of existing trademarks
indicates that there are no trademark restrictions on our trade/service Bubble Buddies,
LLC. We will/will not trademark our name.
Management Team
Susan Guthrie offers a unique blend and extensive breath of experience relative to this
venture. Susan Guthrie has been involved in pet care and dog rescue for more than 16
years. In addition, Susan Guthrie has owned and managed several environmental
consulting businesses. She has been associated with such operations as: management,
accounting, research, marketing, human resources, client relations, and project
management. Her duties have ranged from general management to detailed project and
client management of technical services. Susan Guthrie presents a blend of formal
education (bachelor’s degree) , business management experience, specialized training,
certifications, relative to businesses marketing, sales, customer service, and pet
grooming/care operations that makes her highly qualified to successfully guide this
venture.
The Location
Our business will be a located in a highly visible and conveniently located mixed-use
development with residential, retail, dining, and professional businesses. Therefore,
the location of the business will be instrumental to its success. Our operation will
target the low, middle, and upper market pet owner with a wide variety of low,
moderate, and premium priced services and retail supplies. Key customer
considerations relative to our location include: nearness to a concentration of
potential customers, nearness to pet friendly outdoor space, easily accessible, and
highly visible, with convenient parking. In addition, convenient customer access to
shopping, entertainment, dining, and other desired services will help make the
business successful.
In addition, we have considered a number of other factors including: the location of our
competition, neighborhood stability, appearance of the property, and availability of
police and fire protection. Other considerations like: taxes, political climate, noise
environment, our initial and future space needs, accessibility to support labor pool,
any pending rezoning issues, planned or existing road construction, and satisfaction
of current area business owners have been accounted for. Such locations are
generally in the moderate to high-end price range in the local real estate market.
Bubble Buddies, LLC will be located at 4262 Casey Boulevard, Williamsburg, Virginia
23188. Our location satisfies our key customer needs of being conveniently located in a
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residential and mixed-use commercial development. There is a high concentration of
potential customers as the business is located within the New Town Development adjacent
to a dog friendly park area. The residential facilities in this development have limited lawn
and backyard areas with few if any utility areas that would make home pet washing
convenient. In addition, the business is located adjacent to a physical fitness studio,
shopping, a movie theater, and restaurants, which makes it convenient for pet owners that
do not live in the development to wash their pet and leave it to dry while they enjoy the
rest of the development. The adjacent park area also makes it convenient for pet owners
to walk their pets and let them use the bathroom prior to washing and short-term
boarding. The park is equipped with pet waste centers, so that the additional pets will not
be an inconvenience to non-pet owners and businesses in the area. Parking is plentiful
along the street, directly across the street and around the corner next to the park.
There are not currently any grooming, veterinary or emergency pet care services located
within the New Town Development. However, the majority of veterinary businesses in
Williamsburg are located within 5 – 10miles of our location. DIY pet washing and
grooming services are a compliment to veterinary services, but are not dependent on these
businesses for success. Veterinary facilities are even competitors in some cases, so not
being located directly adjacent to these businesses was identified as a benefit during the
identification of the ideal location.
Construction and upgrades to the existing facility will be required for the business. The
space was not been previously occupied and is still in the original shell condition with an
existing electrical closet, utility closet, bathroom, and office. The space has two entrances,
one on Casey Boulevard and a rear entrance to the parking lot. Construction will include
partial walls (8ft tall side walls and4ft tall front wall to create four separate wash rooms.
The wash rooms will be separated from the rest of the business by pet gates, so that clients
will have easy communication with the shop attendant, but still have privacy and limited
interaction with other pets. One of the four wash rooms will have an extra-large tub to
accommodate large and giant pet breads. The individual wash rooms will make for a
pleasant grooming experience, as they will offer more privacy and reduce unfamiliar pet
interactions. As illustrated on the attached layout, the remaining open areas will be used
for a reception and sitting area, retail area, and dry grooming stations. All of the walls will
require painting. Rubber flooring will be installed and sealed in the wash rooms and then
high end vinyl flooring will be installed in the reception area, retail area, and the dry
grooming area. Plumbing will be adequate to maintain water pressure and temperature to
the wash stations and to ensure proper drainage. Water will be heated with one tankless
water heater, to ensure that there is plenty of warm water for each customer and to reduce
energy and water requirements. The main water supply will be regulated so that the
temperature is preset at each of the washing stations, in order to reduce the amount of
time a customer spends adjusting the water temperature, reduce wasted water, and to
reduce the possibility of scalding customers and their pets. These water efficient practices
will also be used to market the business as an environmentally friendly establishment. No
construction, with the exception of signage, will be required to the exterior of the
property. Our contractors, subcontractors, and specialty trade service providers include a
general contractor, electrician, concrete contractor, and plumbing contractor. This limited
selection of quality contractors will enable us to capture competitive marketplace pricing
and control our costs.
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Examination of our Startup and Twelve-Month Cash Flow Projection (Figure 3 of the
Attachments) provides detail for the cost considerations of our chosen location. Our
combination of low, moderately, and premium priced services and retail will allow us to
accommodate disproportionate facility cost relative to our projected revenue potential. We
have negotiated a “per square foot” lease cost that will support reasonable operating
expenses and an opportunity for a profit. Our financial projections indicate we can
reasonably accommodate a lease cost in the range of $(#) per square foot. Additional
common area charges and maintenance expense experience provided by the landlord are
also factored into our facility cost projections and are well within the reasonable range for
operations of our type. The cost of our operation at this location may be slightly higher
than those of other businesses of our type; however, the location comes with a strong
clientele base and is appropriate for the slightly more upscale version of similar businesses.
THE MARKET
The Service and Products

Bubble Buddies, LLC will feature the following services and products:
Services Provided
The business will provide professional washing stations, waterproof aprons, shampoo,
dryers, towels, and ear wipes for clients to bath their own pets. Clients will have the
option of using a specialty shampoo (flea, odor, and sensitive) or adding a conditioner
for an additional charge. In addition, equipment including nail clippers and grinders,
brushes, scissors, and dental tools (toothbrushes, toothpaste, and dental wipes) will be
available for clients for a per use fee. Grooming technicians will be able to express anal
glands if required. Full-service grooming will also be available to our clients several
days of the week and by appointment. Hourly boarding will also be available with a
maximum not to exceed 4 hours and not past 7pm in evenings. Clients can finish off
their pet bathing with bows, bandanas, and cologne. Pet treats will be provided during
the grooming services. Future services may include pet pickup and delivery, in-house
pet sitting, pet walking, and training.
All breeds and sizes of dogs, cats, rabbits, ferrets, rodents, reptiles, and miniature
equestrian pets will be welcome. Pets will be required to be up to date on vaccinations
for DHLPP, hepatitis, leptospirosis, parainfluenza, parvavirus, bordatella, rabies, etc.
Retail Products
The retail portion of the business will focus on medium to large size active dogs and
offer all of the best products that have been found through years of dog ownership and
rescue that cannot be found in the large chain box pet stores. Products including
indestructible dog beds, pet clothing, collars and leashes, between bath spritzers, bad
breath sprays and mints, toys, backpacks, specialty bowls, skin treatments for itchy skin
and dry cracked noses and paws, treats, and a line of natural five star pet foods will be
available in the retail section of the shop. Name brands will include Premier Pet
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Products, Orijen, the Buddy line from Cloud Star, Bully Sticks, Ecowelldog, ABO
Gear, and K-9 Ballistics. Gift certificates will also be available for purchase.
Susan Guthrie has gained extensive experience in the industry during her tenure as a dog
rescue volunteer. That experience will enable her to maintain the integrity and knowledge
our customers will expect. All services offered will be based on market demand that
Susan Guthrie has researched and experienced during her years in the industry.
Bubble Buddies will maintain a web-based presence. Our web-based informational site
will provide general information on the company, a contact link for questions and other
customer feedback, a consulting appointment/service quote, standard fee structures,
information on our service(s)/product(s), driving directions, business hours, etc. The
website layout will be based on the bubble theme and include lots of pictures of the shop
and customers. The website will be designed to be functional and easy to use with quick
access to popular and important information. The web-based service will be open twenty-
four hours a day and three hundred and sixty-five days per year.
Bubble Buddies will aggressively pursue business-to-business contracts through processes

employed by the industry. We will typically maintain the following business hours with the
last bath 30minutes before closing:
Business Hours
Mon: Closed
Tues: Open 9am – Close 8pm
Wed: Open 9am – Close 8pm
Thur: Open 9am – Close 8pm
Fri: Open 9am – Close 9pm
Sat: Open 8am – Close 9pm
Sun: Open 8am – Close 9pm
Bubble Buddies will maintain quality pet DIY wash and groom service with retail supplies.
The business management operation will be under the supervision of Susan Guthrie. She
has 16 years of management and/or general service experience.
All facility and equipment (Figure 9 of the Attachments) needed for the delivery of a
quality service have been accounted for in our business plan. This includes such key
service operational needs as: fully equipped DIY bathing/grooming units with tubs, spray
units, lift tables, raised grooming tables, cages, dryers, tub mats, all accessories, electrical
power/climate control/plumbing/lighting, and water supply/disposal. In addition,
grooming tools including clippers, clipper blades/tool kit, brushes, combs, rakes,
blades/splitters, dental care tools, ear care tools, grooming loops, nail care tools, and
scissors/shears. Wash and grooming supplies will include aprons, bottles/sprayers,
conditioners, detanglers, odor handlers, shampoos, dental care, ear care, eye care, health
care, nail care, and skin care. Our retail operational item needs include: countertop
displays, display cases and counters, floor and cube merchandisers, rack/displays,
hardware/shelving, packaging/shopping bags, signs/sign holders, tagging/labeling
equipment, lighting, point of sale equipment, security material handling, and backroom
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storage equipment. Our online service will require such items as: a full-service Internet-
based website, telephone answering/order/information request processing system,
ISP/Web Hosting connections, and computer and high-speed Internet connections and
equipment. Our business administration needs will require: computer(s), office furniture
and furnishings, business machines and supplies, customer service communications and
training materials, and business accounting, inventory, and payroll software.
All featured operational equipment and materials will be (stocked as inventory at our
facility and purchased as needed from suppliers. Management of the business’s equipment
and supply needs will be supervised by Susan Guthrie. Ms. Guthrie managed an art
gallery for several years and gained experience with suppliers and managing inventory.
Our venders include Selfservedogwash.com, Ecowelldog, Orijen, Premier Pet Products,
wholesale pet product websites, and small specialty item suppliers. This specialized
selection of quality suppliers will enable us to capture competitive marketplace pricing and
control our costs. All featured products will be in stock and inventory levels will be under
the supervision of Susan Guthrie.
Ms. Guthrie will also be responsible for our client service scheduling and account
management. She has been managing large multi-million dollar projects and clients for
approximately 15 years.
Market Trends
The broad industry sector has experienced some fluctuation in profits in recent years. The
most recent National US Census Bureau 2011 Statistical Abstract data for the other
services (except public administration) sector, which includes the pet DIY wash and
groom service with retail supplies segment, shows that the sector generated $10,469,000
in before tax profits in 2008, marking a decrease of 24.3 percent from 2007.
The most recent US Census Bureau 2011 Statistical Abstract data for the industry
demonstrates a steady sales growth in the national marketplace. A comparison of 2007-
2008 data for the pet care (except veterinary) services sector, which includes the pet DIY
wash and groom service with retail supplies segment, shows that the industry generated
$2,544 million in total revenues in 2008, marking an increase of 6.7 percent from 2007.
The American Pet Products Manufacturers Association (APPMA) 2010-2012 National Pet
Survey shows that there were 62.0 percent of all households owned a pet, which equates
to 72.9 million homes in the United States.
The latest National Comparative US Economic Census Bureau American data for 2002-
2007 for the pet care (except veterinary) services sector, which includes the pet DIY wash
and groom service with retail supplies segment, shows the industry consisted of 11,184
establishments in 2007, an increase of 36.9 percent from 2002. Total gross receipts for the
industry were $2,285,738,000 in 2007, up 53.8 percent from 2002. The total number of
individuals employed by the industry was 51,361 in 2007, up 52.2 percent from 2002. The
average annual revenues for businesses in the sector were $204,375 in 2007, marking a
12.3 percent increase from 2002.
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The latest National US Economic Census Bureau Industry Snap Shot data for 2002-2007
shows that receipts per capita for the pet care (except veterinary) services sector, which
includes the pet DIY wash and groom service with retail supplies segment, was $7.79 per
capita in 2007 and $5.16 in 2002. In Virginia, it ranged from $11 to $15 per capita in
2007.
The state industry has experienced moderate revenue growth in recent years. A
comparison of the most recent mandatory reporting Virginia US Economic Census data
for the pet care (except veterinary) services sector, which includes the pet DIY wash and
groom service with retail supplies segment, for 2002 and for 2007 shows the industry
consisted of 387 establishments in 2007, an increase of 36.7 percent from 2002. Total
gross sales for the industry were $96,769,000 in 2007, up 57.9 percent from 2002. The
total number of individuals employed by the industry was 2231 in 2007, an increase of
56.3 percent from 2002. The average annual revenues for businesses in the sector were
$250,049 in 2007, up 15.5 percent from 2002.
Pet DIY wash and groom service with retail supplies businesses have become highly
recognizable to the marketplace. The growing pet ownership, increasing ownership
awareness of the importance of proper animal care for the proper development of their
pets, the ease of use of our facilities, the convenience of the service, the enhanced pet
bonding opportunity, and the affordability and value of the service has fueled a market
opportunity for our services. A lucrative market niche exists for those operations that can
quickly and efficiently address marketplace demands.
Technology has had a positive impact on the industry. Better supply chain services have
expanded the availability of material, equipment, and supplies and reduced cost of goods
sold expenditures. Computerization has improved the customer access, service, and
tracking capabilities of the industry. We will integrate much of this technology into our
operation.
The Target Market

Bubble Buddies will target the middle, upper-middle, and high-end pet DIY wash and
groom service with retail supplies market niche segment. This segment will be attracted by
our quality services, their convenience, and competitive service pricing. Services and
products will be priced to meet the needs of each target market.
Our target markets continue to grow.
There has been a steady increase in pet ownership and spending for care in recent years.
The American Pet Products Manufacturers Association (APPMA) 2011-2012 National Pet
Survey shows that 38.9 million U.S. households owned at least one cat, 46.3 million U.S.
households owned at least one dog, 2.4 million U.S. households owned at least one
equine, and 5.0 million U.S. households owned at least one small animal. Pet owners
spent and estimated $3.65 billion annually on pet services such as grooming in 2011, up
from $3.51 billion in 2010.
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The most recent National US Census Bureau 2011 Statistical Abstract data for households
with companion pet ownership shows that there were 72.1 million companion pet dogs
and 81.7 million companion pet cats in 2006 and 43.0 million households or 37.2 percent
of all households owned a dog and they owned, on average, 1.7 dogs per household while
37.5 million households or 32.4 percent of all households owned a cat and they owned, on
average, 2.2 cats per household. The highest dog ownership was among households with
annual incomes of $55,000 to $84,999 with 42.8 percent followed by those with annual
incomes of $85,000 and over with 41.2 percent respectively. The highest cat ownership
was among households with annual incomes of $55,000 to $84,999 with 35.5 percent
followed by those with annual incomes of $35,000 to $54,999 with 34.1 percent
respectively. Data for households with companion pet ownership also shows that there
were 7.3 million companion pet horses in 2006 and that 2.1 million households or 1.8
percent owned a horse and they owned, on average, 3.5 horses per household. The
highest hoarse ownership was among households with annual incomes of $85,000 and
over with 2.3 percent followed by those with annual incomes of $35,000-$54,999 with 2.1
percent respectively. The same data shows that there were 11.2 million companion pet
birds in 2006 with 4.5 million households or 3.9 percent owning a bird and they owned, on
average, 2.5 birds per household. The highest bird ownership was among households with
annual incomes under $20,000 annually and among households with $35,000 to $54,999
of annual income with 4.4 percent of all of those households owning a pet bird.
Number of dogs: A local demographic survey (Appendix X) estimated 26,412 households

in 2011 within a 5 mile radius of the proposed business location. In addition, 29,146
households are projected for 2016. The DIY pet wash industry typically serves dogs
more than any other species. Therefore, based on the American Veterinary Medical
Association’s (AVMA) pet ownership calculator, the estimated number dogs within a 5-
mile radius of the business is 16,709 dogs and 18,197 dogs projected in 2016. The
proposed business location is in James City County, which reported 2,857 dog licenses
issued in 2011. The adjacent City of Williamsburg only reported 414 dog licenses issued
in 2011. However, the majority of dogs are not licensed and therefore the actual of
numbers of dogs in these two localities is significantly higher than 3,271. In addition, an
informal survey of 15 local veterinary businesses identified the total number of dogs
treated per year to be between 74,601 and 99,301. However, these numbers include dogs
that had multiple visits to the vet. The AVMA estimates that on average a dog visits the
vet 2.2 times a year, which would reduce the number of dogs seen between 37,300 and
49,650.
The retail pet and pet supplies industry also experienced moderate sales grow in recent
years. According to the latest mandatory reporting National US Economic Census 2002-
2007 data for the for the pet and pet supplies stores sector shows that the sector consisted
of 8782 establishments in 2007, up 15.1 percent from 2002. Total gross receipts for the
industry were $11,411,000,000 in 2007, up 50.2 percent from 2002. The average annual
revenues for businesses in the sector were $1,299,000 in 2007, marking a 30.4 percent
increase from 2002.
The latest National US Economic Census Bureau Industry Snap Shot data for 2002-2007
shows that sales per capita for the pet and pet supplies stores sector was $37.87 per capita
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in 2007 and $26.39 per capita in 2002. In Virginia, it ranged from $36 to $45 per capita in
2007.
The veterinary services industry has experienced stable sales grow in recent years.
According to latest mandatory reporting National US Economic Census data for the
veterinary services sector for 2002-2007 the sector consisted of 28,400 establishments in
2007, up from 25,642 in 2002. Total gross receipts for the industry were
$24,568,000,000 in 2007, up from $16,623,000,000. The average annual sales for
businesses in the sector were $865,000 in 2007, up from $648,000 in 2002. The national
receipts per capita were $81.54 in 2007 and $57.77 per capita in 2002. In Virginia, it
ranged from $99 per capita to $126 per capita in 2007.
The animal production and support industries have demonstrated modest revenue growth
in recent years. A comparison of the most recent mandatory reporting National US
Economic Census data for the support activities for animal production sector for 2002
shows the industry consisted of 42,587 establishments in 2006, an increase of 3.2 percent
from 2002. Total gross receipts for the industry were $1,738,516,000 in 2006, up 17.2
percent from 2002. The average annual revenues for businesses in the sector were $40,822
in 2006, marking a 13.4 percent increase from 2002.
A viable target market base does exist for Bubble Buddies. Our targeted market client mix
includes male pet owner, female pet owner, family pet owner, show dog owner, animal
rescues, pet shop, veterinarian, government and municipal law enforcement, security firm,
animal care service, pet trainers, and contracted pet breeder market tier clientele.
Our targeted male pet owner customer will be between 18 and 65 years of age, with an
average family income of $35,000 a year and over. Male pet owner customers will have at
least one pet and be made up of college students, and men in the industrial, agricultural,
professional, and food and beverage service industries. This target customer base will rent
or own their residences, who take good care of their pets. Male pet owners that have
active professions and recreational interests, including hunting, hiking, boating, camping,
and other outdoor activities with their pets will be targeted.
While some of our male pet owner customers may be from the City of Newport News,
Charles City County, York County, Toano, Lenexa, and New Kent County regions, most
of our regular clientele will reside within five (5) to ten (10) miles of the business. Over
31,319 men are located just within the five (5) mile market territory in the City of
Williamsburg and James City County. Based on the AVMA calculator, it is estimated that
7,917 of these men dogs, 8,932 men own cats, and 2,017 men own other animals within
this geographical market.
Our targeted female pet owner customer will be between 18 and 65 years of age, with an
average family income of $35,000 a year and over. Female pet owner customers will have
at least one pet and will be made up of college students and women in the professional,
recreational, education, tourism, home makers, and food and beverage service industries.
This target customer base will rent or own their residences and take good care of their
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pets. Female pet owners that have active professions and recreational interests, including
hiking, boating, camping, and other outdoor activities with their pets will be targeted.
While some of our female pet owner customers may be from the City of Newport News,
of our regular clientele will reside within five (5) to ten (10) miles of the business.
Approximately 34,776 women are located just within the five (5) mile market territory in
the City of Williamsburg and James City County. Based on the AVMA calculator, it is
estimated that 8,791 of these women own dogs, 9,918 women own cats, and 2,239
women own other animals within this geographical market.
Our targeted family pet owner customer will have two or more people in the household,
including children. Family pet owner households will have an annual income of over
$35,000 and have at least one (1) family pet. Family customers consider their pets to be a
family member and may actively participate in the pet wash together.
While some of our family pet owner customers may be from the City of Newport News,
of our regular clientele will reside within five (5) to ten (10) miles of the business. There
are approximately 19,452 households with at least two people located just within the five
(5) mile market territory in the City of Williamsburg and James City County. Based on the
AVMA calculator, it is estimated that 4,917 of these households own dogs, 5,548
households own cats, and 1,253 households own other animals within this geographical
market.
Our targeted show dog owner customers are expected to use the full service grooming
services. However, some show dog owner customers may prefer a space and equipment
to do their own grooming. Show dog owners are expected to have very specific
requirements for grooming and be in the upper-middle to upper income brackets. The
majority of these customers will be in the forty (40) years and older age groups. Show
dog owners often own more than one dog. While some of our show dog owner
customers may be traveling to a local dog show, most of our regular clientele will reside
within five (5) to ten (10) miles of the business. Show dog owners include breeding and
kennel clubs, agility/tracking clubs, and hunting clubs of which there are several within the
target area and many regionally.
While some of our animal rescue group customers may be from the Richmond, most of
our regular clientele will reside within ten (10) to twenty (20) miles of the business. The
local humane society adopted out 1,100 pets in 2011 with another 350 transferred or
returned to owner. There are two active pit bull rescue groups and other breed specific
rescues locally. Rescue groups are very devoted to their volunteers and coordinate with
other rescues regionally and even internationally. DOES MARKETING EFFORT WITH
CHARITIES GO HERE?
Our targeted pet shop, animal training, and veterinarian sector businesses are expected to
be conduits for clientele rather than actual customers. Target businesses locally and
regionally will be marketed. This targeted sector will be covered in more detail in the
Marketing Strategy Section of this report.
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Local and regional groups and agencies that use and train service dogs will also be
targeted conduits. These groups take very good care of the dogs in their programs and
include law enforcement agencies, the military, security firms, and health related service
dog programs.
Our market territory will be local and regional in its geographical focus. (US Economic
Census information regarding your profiled business or targeted industry customer
may be found at (http://factfinder.census.gov/servlet/EconSectorServlet?
caller=dataset&sv_name=*&_SectorId=44&ds_name=EC0700A1&_lang=en&_ts=31254
4964139) Click on the preceding web link of the NAICS #45391 of the industry
segment you are targeting for sales. Scroll down to the “Geographic Area Series” and
click on “US, States, Metro and Micro Areas….” option to gather national
establishment, growth, and sales data on the sector. To localize the data by State,
County, Combined Statistical Area, etc. highlight the “Filter Rows” button and scroll
down to and click on the “by Geography” selection. On this page engage the drop
down menu under the “Select a Geography Type” option and select your State,
County, Metro, etc. choice in the search box, click “Add” and the “Show Result” to
engage the search. Scroll down to the industry segment sector of the customer that
you are targeting to obtain the data for your selected geographical marketplace).
Analysis of this market territory indicates there are over (#) of targeted (pet shop) sector
customers in this area. They provide a large target market base for Bubble Buddies.
Our targeted (veterinarian) business client will be (Identify the profile of this customer
from your Primary Market Research. Identify the quantitative characteristics such as:
number of employees, business/corporate type, size of the business, years in business,
average sales/revenues, etc.) (Identify the qualitative characteristics of your targeted
commercial/corporate client relative to its: corporate culture, use of the pets, type of
clients served, etc.)
Our area of operation will be (local/regional/statewide/national/international) in

geographic scope. Over (#) potential (veterinarian) business clients are located in this
market territory. (US Economic Census information regarding your profiled business
or targeted industry customer may be found at
(http://factfinder.census.gov/servlet/EconSectorServlet?
you are targeting to obtain the data for your selected geographical marketplace). They
provide a large target market base for (Name of Business).
13
Our targeted (security services) sector business customer is (This Profile needs to be
developed from your Primary Market Research. Identify the quantitative
characteristics such as: number of employees, level of sales, years in business, size of
company, etc.)(Identify the qualitative characteristics of your targeted client such as
industry type, attitudes, education, cultural/ethnic/geographical influences, corporate
culture, and competitive pressures on that industry)
Our market territory will be (local/regional/national/international) in its geographical

focus. (US Economic Census information regarding your profiled business or targeted
industry customer may be found at
Analysis of this market territory indicates there are over (#) of targeted (security services)
sector customers in this area. They provide a large target market base for (Name of
Business).
Our targeted (government/municipal law enforcement) customer is (What are the

quantitative characteristics of your profiled customer: what type of municipal legal
structure, population size, purchasing volume, rural/urban, geographical size, years in
operation, growing/stagnant, etc. What are the qualitative characteristics of your
profiled client: price driven, quality driven, growing population, attitude toward
service, attitude toward taxes, etc.? This information needs to be provided by your
Primary Market Research).
There are over (#) (local/state/regional/national/international) targeted

(government/municipal law enforcement) prospects that use our services operating in
our market territory. (These numbers need to be provided by your Primary Market
Research relative to your location. US municipal information regarding your profiled
business or targeted industry customer may be found at
(http://www.statelocalgov.net/state-va.cfm) Using the “State” search box located in the
upper left corner of the page, click on the state you are targeting for sales. Scroll
down to the appropriate municipal segment sectors to gather local/regional/national
establishment data on the sector. They provide a large target market base for (Name of
Business).
Our targeted (animal care service) business client will be (Identify the profile of this
customer from your Primary Market Research. Identify the quantitative
characteristics such as: number of employees, business/corporate type, size of the
14
business, years in business, average sales/revenues, etc.) (Identify the qualitative
characteristics of your targeted commercial/corporate client relative to its: corporate
culture, use of the pets, type of clients served, etc.)

geographic scope. Over (#) potential (animal care service) business clients are located in
this market territory. (US Economic Census information regarding your profiled
business or targeted industry customer may be found at
you are targeting to obtain the data for your selected geographical marketplace). They
provide a large target market base for (Name of Business).
Our targeted (pet trainer) business client will be (Identify the profile of this customer
from your Primary Market Research. Identify the quantitative characteristics such as:
number of employees, business/corporate type, size of the business, years in business,
average sales/revenues, etc.) (Identify the qualitative characteristics of your targeted
commercial/corporate client relative to its: corporate culture, use of the pets, type of
clients served, etc.)

geographic scope. Over (#) potential (pet trainer) business clients are located in this
market territory. (US Economic Census information regarding your profiled business
or targeted industry customer may be found at
We will contract our services to breeders in the industry. Our targeted (pet breeder)
business client will be (Identify the profile of this customer from your Primary Market
15
Research. Identify the quantitative characteristics such as: number of employees,
business/corporate type, size of the business, years in business, average sales/revenues,
etc.) (Identify the qualitative characteristics of your targeted commercial/corporate
client relative to its: corporate culture, use of the pets, type of clients served, etc.)

geographic scope. Over (#) potential (pet breeder) business clients are located in this
market territory. (These numbers need to be provided by your Primary Market
Research relative to your location. US Economic Census information regarding your
profiled business or targeted industry customer may be found at
(http://www.census.gov/epcd/nonemployer/latest/us/US000_11.HTM) Click on the
preceding web link for NAICS #11521 of the industry segment you are targeting for
sales. Scroll down to the appropriate segment sectors to gather national establishment,
growth, and sales data on the sector. To localize the data by State, enter your state
choice in the search box in the upper right corner of the website and engage the
search. Scroll down to the industry segment sector you are targeting as a customer to
obtain the same data for your statewide marketplace). They provide a large target
market base for (Name of Business).
Our targeted recreational and boarding (horse owner) customer will be (Identify the
profile of this customer from your Primary Market Research. Identify the quantitative
characteristics such as: average family income, years of age, number of pets, years of
pet ownership, profession/job, etc.)(Identify the qualitative characteristics of your
targeted client such as: type and value of pets owned, attitudes toward
competitive/recreational riding, education, cultural/ethnic beliefs, etc.)
While some of our recreational and boarding (horse owner) customers may be from
(regional/out-of-state) geographical locations, most of our regular clientele will reside
within (#) miles of the business. Over (#) potential customers are located in this market
territory. (These numbers need to be provided by your Primary Market Research
relative to your location. Census information regarding your profiled customer may
be found at the following web link. (http://quickfacts.census.gov/qfd/index.html) If your
market covers a larger geographical area, the same site will link to national and other
state links.) There are an estimated (#) owners within this geographical market. (This
number needs to be gathered from pet owner associations, riding clubs, breeder
associations, etc.)
The Competition
Our analysis indicates a viable and competitive national marketplace. According to the
most recent mandatory reporting National US Economic Census 2007 statistics for the pet
care (except veterinary) services sector, which includes the pet DIY wash and groom
service with retail supplies services segment,
(http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-
fds_name=EC0700A1&-_skip=100&-ds_name=EC0781I2&-_lang=en) (Click on the
preceding link and scroll down to NAICS #81291 to view and verify the following
numbers. Divide the total revenues by the total number of establishments to verify the
following gross sales per business figures) shows that the total revenue generated by the
16
sector were $2,285,738,000. There were 11,184 competitors nationwide in this
marketplace during that time resulting in an average of $204,375 of annual sales for
businesses in the sector.
Our analysis indicates a viable and competitive state marketplace. According to the most
recent mandatory reporting Virginia US Economic Census 2007 statistics for the pet care
(except veterinary) services sector, which includes the pet DIY wash and groom service
with retail supplies services segment, (http://factfinder.census.gov/servlet/IBQTable?
_bm=y&-ds_name=EC0781A1&-geo_id=04000US51&-search_results=01000US&-
_lang=en&-fds_name=EC0700A1) (Click on the preceding link and scroll down to
NAICS #81291 to view and verify the following numbers. Divide the total revenues by
the total number of establishments to verify the following gross sales per business
figures) the total revenue generated by the sector was $96,769,000. There were 387
competitors statewide in this marketplace during that time resulting in an average of
$250,049 of annual revenues for businesses in the sector.
The latest mandatory reporting Virginia US Economic Census 2007 data for (local
community or metro area name) for the pet care (except veterinary) services sector,
which includes the pet DIY wash and groom service with retail supplies services segment,
also showed total sales of $(#) generated by (#) competitors averaging $(#) in annual
revenue. (County, Metropolitan or Combined Statistical Area data for any State for
2007 may be found at the following US Economic Census link:
(http://factfinder.census.gov/servlet/IBQGeoSearchByListServlet?
_lang=en&_ts=331465828783) Click on the preceding link and follow the directions for
querying your specific “State” - County/Metropolitan Area/Combined Statistical Area
data. Scroll down to NAICS #81291 to view your localized data for the respective
segment of the industry for which you are seeking data. Using the data provided, you
can divide the total sales by the total establishments in your area and arrive at the
average per-location sales figures. If data is not available for 2007 then 2002 data can
usually be found at the link in the paragraph below.)
The latest mandatory reporting Virginia US Economic Census 2002 data for (local
community or metro area name) for the pet care (except veterinary) services sector,
also showed total sales of $(#) generated by (#) competitors averaging $(#) in annual
revenue. (http://www.census.gov/econ/census02/data/va/VA000_81.HTM) (To more
specifically identify the local potential of your business, click on the preceding web
link. Localize your data by going to the “Metro Area” or “County” search directors
located in the upper right corner of the web page. Select the area “metro area” or
“county” you want localized data for and engage the search director. Click on NAICS
#812 and scroll down to NAICS #81291 to view and verify your localized data. MOST
SEARCHES WILL GENERATE LOCALIZED DATA FOR YOUR USE. Using the
data provided, divide the total revenue by the number of establishments to arrive at the
preceding numbers for your local area)
Our competitive analysis of pet DIY wash and groom service with retail supplies
competitors (Figure 1 of the Attachments) (Figure 1 of the Attachments should contain
your primary market research relative to your location) indicates that success has come
17
to the operations that have been able to differentiate themselves in the marketplace.
Success has also come to those who have been able to maintain their market niche with
quality products and service. Those that have not been able to do so have failed.
(Name of Business) will find its most direct competitors to be (Identify name(s) of most
direct competitors obtained from your primary market research relative to your
location). These operations have demonstrated an ability to meet the demands of the
targeted customer base we will be competing for.
Indirect competition will come from (Name those businesses that you identified from
your Primary Market Research that are located in your market territory that will
provide indirect competition to your business).
To compete (Name of Business) will need to take advantage of our competitor’s

weaknesses and minimize their strengths while finding a competitive advantage that will
differentiate us in the marketplace.
(Your Competitive Analysis of the Primary Market Research you have gathered of
those businesses that are targeting your customer should highlight)
 (The Product(s)/Service(s) they offer)

 (Their Pricing Structure or Range)
 (Their Strengths…what customers like about them)
 (Their Weaknesses…what customer dislike about them)
(Name of Business) will need to provide the highest quality services to compete with the
best operations in our market territory. (Name those direct/indirect competitors) all have
sound reputations that have been built from the quality they provide. We will utilize only
quality suppliers and venders. Our products and services will be (equal/better/ worse)
than those of our competitors.
The pricing of our direct competitors is in the $(#) to $(#) range. The price range of
(Name of Business) will be (higher than/lower than/similar to) those of our
competitors. We feel our pricing strategy will enable us to effectively enter, compete and
grow market share in this marketplace.
Our competitive analysis also identified weaknesses of our competitors that currently exist
in their respective operations. These weaknesses include (Identify any operational
defects [employee turnover, mismanaged cost of services sold, etc.], reputation related
[quality of service related] problems, and/or regulatory, regulatory history [forfeitures
and citations], humane/caring treatment of animals, that your competitors may have
experienced). We intend to take full advantage of these weaknesses by (You should detail
how you are going to take advantage of these weaknesses of your competitors to
capture their customers.)
Our primary market research was also successful in identifying some gaps in service that
exist in this marketplace. They include the following: (Your Competitive Analysis of the
18
Primary Market Research you have gathered of those businesses that are targeting
your customers should have disclosed some customer demands that are not currently
being offered or adequately being met in the your marketplace.) (Identify them).
These gaps represent opportunities for our operation and will be the foundation for our
competitive advantage in this marketplace.
The Competitive Advantages
We will differentiate (Name of Business) from our competitors by addressing the

following marketplace gap(s) identified above (Identify the marketplace gap(s) you can
effectively and profitably fill in your operation). We will (Discuss how you will address
the identified gap(s) and integrate them into your operation and marketing).
(Name of Business) will possess some other important competitive advantages that will
help position it in the marketplace and help differentiate it from our competitors. We will
provide (Identify and discuss your competitive advantage(s) with respect to this
marketplace. Typically, pet DIY wash and groom service with retail supplies
distinguish themselves in the marketplace by: quality of staff, full-service facility with
services and amenities desired by customers, animal/breed specialization or range,
convenient and accessible location, expertise/experience with animals served or
training approaches provided, etc. and price competitiveness. These are some
additional ways businesses use to differentiate their products or services)
Quality Service Perceived Value

Convenience Reliability Price
Familiarity Locally Owned Warranty
Financing Options Product Range Specialization
Credentials Prestige Method of Production
Status Different Accessibility of Purchase
Market Share Estimates
Intense competition, accelerating business cycles and the segmentation of the marketplace
will continue to be major factors in the pet DIY wash and groom service with retail
supplies industry.
The latest mandatory reporting National US Economic Census 2007 data for the pet care
(except veterinary) services sector, which includes the pet DIY wash and groom service
with retail supplies services segment, (http://factfinder.census.gov/servlet/IBQTable?
_bm=y&-geo_id=&-fds_name=EC0700A1&-_skip=100&-ds_name=EC0781I2&-
_lang=en) (Click on the preceding web link and scroll down to NAICS #81291 to view
and verify the following data. Divide the total sales by the number of competitors to
verify the following data) shows the average operation had gross annual sales of
$204,375. We are projecting sales of $(#) during our initial year of operation. Our
projections are (conservative/moderately conservative/optimistic) relative to industry
averages and reflect our revenue goal relative to this local market opportunity. We feel
our sales projections for the business are (well within/ within/beyond) our reach over the
near-term.
19
The most recent mandatory reporting Virginia US Economic Census 2007 data for the pet
care (except veterinary) services sector, which includes the pet DIY wash and groom
service with retail supplies services segment,
(http://factfinder.census.gov/servlet/IBQTable?_bm=y&-ds_name=EC0781A1&-
geo_id=04000US51&-search_results=01000US&-_lang=en&-fds_name=EC0700A1)
(Click on the preceding link and scroll down to NAICS #81291 to view and verify the
following numbers. Divide the total revenues by the total number of establishments to
verify the following gross sales per business figures) shows the average operation had
gross annual revenues of $250,049. We are projecting revenues of $(#) during our initial
year of operation. Our projections are (conservative/moderately conservative/optimistic)
relative to industry averages and reflect our revenue goal relative to this local market
opportunity. We feel our revenue projections for the business are (well within/
within/beyond) our reach over the near-term.
The latest mandatory reporting Virginia US Economic Census 2007 data for (Identify
county, place or metropolitan area) for the pet care (except veterinary) services sector,
(County, Metropolitan or Combined Statistical Area data for any State for 2007 may be
found at the following US Economic Census link:
_lang=en&_ts=331465828783) Click on the preceding link and follow the directions for
querying your specific “State” - County/Metropolitan Area/Combined Statistical Area
data. Scroll down to NAICS #81291 to view your localized data for the respective
segment of the industry for which you are seeking data. Using the data provided, you
can divide the total sales by the total establishments in your area and arrive at the
average per-location sales figure. If data is not available for 2007 then 2002 data can
usually be found at the link in the paragraph below.) shows the average operation had
gross annual sales of $(#). We are projecting sales of $(#) during our initial year of
operation. Our projections are (conservative/moderately conservative/optimistic) relative
to industry averages and reflect our revenue goal relative to this local market opportunity.
We feel our sales projections for the business are (well within/ within/beyond) our reach
over the near-term.
The latest mandatory reporting Virginia US Economic Census 2002 data for (Identify
county, place or metropolitan area) for the pet care (except veterinary) services sector,
which includes the pet DIY wash and groom service with retail supplies segment,
(http://www.census.gov/econ/census02/data/va/VA000_81.HTM) (If available, you may
want to use “local” data relative to sales to represent your Market Share Estimate.
You can use either or combine this paragraph with the “state” data represented in the
above paragraph for your Market Share Estimate. To more specifically identify the
revenue potential of your business, click on the preceding web link. Localize your data
by engaging the “Metro Area” or “Counties” query directors found in the upper right
corner of the web page. Engage the search. MOST DATA SEARCHES WILL
PRODUCE LOCALIZED DATA. ON OCCASION SUCH DATA IS
UNABVAILABLE. IF THIS IS THE CASE, INSERT THE MOST RECENT
STATEWIDE AVERAGE SALE PER BUSINESS DATA PREVIOUSLY STATED IN
THE BUSINESS PLAN. Click on the arrow for NAICS #812 and scroll down to
20
NAICS #81291 to view your localized for the respective segment of the real estate
industry for which you are seeking data. Using the data provided you can divide the
total sales by the total establishments in your area and arrive at the average per
location sales figures) shows the average operation had gross annual sales of $(#). We
are projecting sales of $(#) during our initial year of operation. Our projections are
(conservative/moderately conservative/optimistic) relative to industry averages and
reflect our revenue goal relative to this local market opportunity. We feel our sales
projections for the business are (well within/ within/beyond) our reach over the near-
term.
MARKETING & SALES STRATEGY
Pricing and Positioning
Our primary pricing objective will be to capture, build, and maintain market share. We
will be entering a competitive middle, upper-middle, and high-end grooming and pet retail
supplies market niche. However, the local market niche for a DIY pet wash and grooming
facility currently has no competition. Our pricing will need to be sensitive to the
expectations of our DIY lower and middle market niche clientele, in order to focus on
volume. In addition, the full service grooming and retail products will meet the needs of
the middle, upper-middle, and high end market niche. This diversity of services and
products is designed to attract all market niche tiers, thereby establishing a stable base
clientele.
Our pricing will also be margin driven. While our price floor will be determined by our
break-even point, we will need to employ a flexible pricing mechanism that will allow us to
reflect competition and market conditions. At the same time, we will be selective in our
services offerings. We will choose only those services and products that will allow us to
support sound profit margins.
Our primary market research of our direct competitors in the City of Williamsburg and
James City County market indicates that a minimum of a 100% mark-up is generally
applied to all retail products and 250% to 300% is applied to grooming services. (This
number needs to be provided from your primary market research of direct competitors
in your market territory) percent mark-up is generally applied on their (wash and
grooming) service offerings.
(Pricing of your services will basically follow a formula that includes the following
components: (Your annual worth as a labor commodity (what you would like to make
or will need to pay an employee(s)/261(150 = 3days/week – holidays)(the number of
billable working days in the year for which you will provide the service))+(Overhead:
the costs of service providers vary by industry but generally average 65-145% of there
annual labor rate)+(Profit: apply a margin that will result in a healthy business such
as 15-25%). For example:
1. Daily Labor Rate: (Labor rate) $80,000/261 (Billable days) = $306

2. Overhead: (Daily Labor Cost) $306 x 95% (Cost of Service = 290
21
Total Cost of Service $596
3. Add in your Profit (20%): $596/divided by .80 {100%-20%) = $745
(Your desired daily service charge rate becomes $745 and by dividing it by the number
of hours you work you can identify your desired hourly rate 745/8 = $93 per hour for
your services or the services of your employee(s). NOW IDENTIFY WHAT THE
MARKET RATE FOR THE SERVICE IS TO DETERMINE YOUR
COMPETITIVENESS.)
We have illustrated our costs and markup for a typical (wash and grooming) service to
demonstrate our pricing competitiveness. This pricing approach has also been
incorporated into our financial projections.
1. Daily Labor Rate: Labor rate $(#)/ (#) Billable days = $ (#)
2. Overhead: Daily Labor Rate $(#) x (#) % Cost of Service = + (#)
Total Cost of Service = $ (#)
3. Total Daily Service Charge Rate with Profit Added = $ (#)
The service costs above will result in an average (per-pound/per-session/a la carte) rate
of $(#) for our (DIY wash and grooming) services and an average (per-pound/per-
session/a la carte) rate of $(#) for our (professionally administered wash and
grooming) services.
The service costs above will also result in an average (per-program /per- workshop) rate
of $(#) for our training services.
Our service charge rates (will/will not) be competitive with those charged by our direct
competitors in the marketplace.
Our primary market research of our direct competitors in the (name of community or
metro area) market indicates that a (#) (This number needs to be provided from your
primary market research of direct competitors in your market territory) percent mark-
up is generally applied on their product offerings.
(There are four main methods of determining the price of your product. It is
suggested you adopt a consistent pricing method that is compatible with your industry
and marketplace. Apply one of the following methods and illustrate it below to
demonstrate to the lender that you will be competitive in the marketplace after
accounting for all your operating costs plus a profit. The traditional product pricing
methods are:
1) The Suggested or Going Rate: You simply set your prices based on competitor’s
prices.
2) Full-Cost Pricing: Add up all your operating costs, distribute them over the cost
of your merchandise/products, and add a preset profit. For example: ($10,000
for inventory or materials and the labor it costs to produce the product + $5000
22
fixed operating expenses/1000 units of the product = $15 per product + $5
profit per product = $20 selling price per product.
3) Gross Margin: The mark-up method multiplies a percentage times your base
cost. For example: {50% mark-up on an item that costs $1.00: $1.00 + (50% of
$1.00) = retail price of $1.50}.
4) Margin Percentage: This method is a percentage of the retail price. For
example: {33 1/3% margin on a product priced at $1.50: Retail price of $1.50 -
$1.00 cost = .50, then divided by the retail price of $1.50 = 33 1/3%}).
We have illustrated our costs and markup for a typical (product) charge to demonstrate
our pricing competitiveness. We will apply a (suggested rate/full-cost/gross
margin/margin percentage) pricing method to our products. This pricing approach is
also incorporated into our financials.
Average Price of Our Product Charge = $(#)
(Illustrate the formula from above by inserting your numbers and computation)
We feel we will be able to keep our cost of services sold expenses (at/under) (#) percent
and our cost of goods sold expenses (at/under) (#) percent by implementing the specialty
trade techniques we have learned over the years. Such management techniques will
include: selective use of product, material and equipment wholesalers and a price bidding
process integrated into our purchasing procedure. A facility and equipment preventative
maintenance program will also be used to implement and assure a cost efficient operation.
Other cost savings and enhanced revenue generation potential will be captured through
efficiencies in customer service operation. (Name of Person Responsible) will manage
the production and service delivery components of the business. Inventory/supply
management, staff training and scheduling, and refined account management techniques
will enable us to more effectively utilize our personnel, facility, equipment and operating
capital.
Finally, value added and creative pricing strategies will also be employed. Such time
tested industry strategies as: service package specials, discounts to targeted market
customer groups/long-term contracts, and regular seasonal pricing features will be utilized
to grow market share and enhance margins.
Sales
Our revenue will be generated by our service and product sales.
We will use a number of approaches to generate sales for our business. They include:
(Every business must utilize some type of approach that initiates sales. Describe the
way you will initiate your sales process. Pet DIY wash and groom service with retail
supplies businesses utilize sales approaches tailored to their target market such as:
direct sales calls/telemarketing, customer assisted sales assistance, competitive contract
bidding, networking, club/association group sales presentations, and cold calling are
often used in soliciting contracts with business-to-business customers. Direct
23
consumer sales may involve: direct counselor selling and customer assisted sales
assistance. Will you use one or more of the following traditional approaches: direct
counselor selling, cold calling, inside sales contacts, online shopping cart approach,
customer assisted sales assistance, customer DIY, door-to-door, group sales
presentations, telemarketing, manufacturer representatives, answering/order taking
services, catalog sales, registration with sales agents/listing services/dispatching
services, etc. Or will you use a new or novel approach)
While our advertising will bring customers to us it will be our management and staff that
will initiate and ultimately complete the sales process. All staff will be trained to provide
superior customer service and education. Our timely response to customer inquires and
requests for service will immediately distinguish us in the marketplace. Our staff will be
schooled in our service offerings and will be trained to be able to recommend services that
will compliment the interests of the customer. Our staff will employ soft touch techniques
such as warm greetings, expressions of appreciation for patronage and detailed posted
quotes on services provides.
Our sales approach will be supported by a year around marketing effort and campaign.
There will be some revenue swings to the business that we will want to respond to in our
sales efforts. Sales may be affected by special events, economic cycles, regulatory
standards, the holidays, and the seasons.
We will generate and grow our customer base with consistent sales and marketing effort.
Susan Guthrie will be responsible for the creation of our marketing plan and budget,
material development, targeted marketing, plan implementation, and direct sales. She has
progressively responsible experience in all these areas and will also be assisted by SCORE.
The rollout of the initial marketing campaign and its consistent application will generate
immediate contracts and will create a relatively quick cash flow for the business.
Most sales will be cash, check, or credit card transactions for services completed.
Consumer services will be collected at the time of service. All major credit and debit cards
will be honored. Local checks and travelers checks will also be accepted for payment.
Contracting arrangements with our business and commercial clients will generally produce
payment within thirty days of the service delivery.
Advertising and Promotion
There are time tested advertising strategies employed by the industry. They are, of course,
utilized in varying degrees with levels of sophistication tailored to the targeted markets.
Bubble Buddies will primarily employ the following advertising mediums: (Typically, pet
DIY wash and groom service with retail supplies businesses use: newspaper classifieds,
local magazines, Yellow Pages, business signage, flyer distribution in pets stores/etc,
word of mouth referral, Websites and Internet Directories, and direct mail to local
target market residential customers. For targeted business and commercial target
markets such mediums as: direct mail, the Yellow Pages, telemarketing, trade shows,
competitive contract bidding, word of mouth referral, Websites and Internet
Directories, and signs on vehicles. Identify and briefly discuss those advertising
strategies and mediums that you will use in the launch and establishment phases of
24
the business. Below are some traditional advertising methods and mediums to
consider)
Newspapers Weekly Papers Shopper’s Guides?

Radio Television Cable TV Shows
Magazines Direct Mail Brochures
Yellow Pages Trade Directories? Signage
Point of Purchase Displays? Trade Shows Clinics
Outdoor Billboards Signs on Vehicles Telemarketing
Uniforms? Website Press Releases
Lectures Newsletter Public Presentations
Publish Articles Teach Workshops Direct Selling?
Association Memberships Open House/Grand Opening
Catalog Flyer Distribution Cooperative Ads?
Customer Bounce-backs Daily/Weekly Specials Seasonal Specials
Cold Calling Dog Shirts/Walking
Our marketing message will need to reflect the demands of the target customer we are
trying to attract. Our patrons will all be seeking somewhat different benefits from our
establishment. Therefore, our advertising message and service offerings will be tailored to
attract and meet the demands of our diverse customer base.
OPERATING REQUIREMENTS
Production of the Service
The over-all business management and operational components of Bubble Buddies will be
the responsibility of Susan Guthrie. Susan Guthrie will supervise the quality of our
product/service delivery. Susan Guthrie will oversee the human resource needs of the
business. The financial accounts payable/receivable/cash flow management duties of the
business will be performed by Susan Guthrie.
Our typical (DIY) service process will involve (Identify, in general terms, the process
that will be used to serve your clients such as: animal assessment, staff preparation of
unit for service, client instruction in use of equipment for service administration,
finishing, payment, etc. Emphasize that which will set your company apart from it
competition).
Our (value added professional services) will be supervised by (Proprietor(s) Names who
are responsible). (His/Her) experience includes (Identify the experience, training,
certifications, licenses, etc. that your lead manager has in pet breeds/training, or
services). Our value added programs will generally involve (Identify the components of
your programs such as length of training, phases of training, field testing, quality
control standards, etc.)
Our administrative, service, and equipment storage facility provides us with (#) square
feet. This will be sufficient to accommodate our launch and early growth phase of the
business.
25
In addition, employee safety procedures and systems will be integrated into the operation.
All necessary equipment and tools necessary for the service of our customers have been
included in the plan. Two separate telephone systems will serve our main office and
customer service operations respectively. Customer service and billing procedures have
been developed. These procedures and systems include: (Identify the procedures and
systems that will be used in your operation).
We have located and researched the key venders and suppliers that will be needed to
supply and service the administrative needs of (Name of Business). (Identify the major
vendors and/or suppliers you will be relying upon for your business. Major U.S.
Manufacturers and Service Businesses may be found at
(http://www.thomasnet.com/index.html).
Staffing and Employees
Figure 2 of the Attachments illustrates the profile of the potential labor force needed to
serve the venture. The business will require several skill sets for its operational areas.
These skill sets include: knowledgeable pet groomers/trainers/handlers/etc. staff, service
attendants, retail staff, facility maintenance staff, service bidding/scheduling/supplying
management, marketing/advertising/sales, financial management, human resource skills,
and office administration staff. The compensation representations were acquired from
current Virginia job network postings and labor market information
(http://www.vawc.virginia.gov/analyzer/default.asp) and represents current labor cost
projections.
Services will be performed by (employees/other subcontracted independent

contractors/a combination of employee and subcontracted/independent contractors)
personnel.
An adequate area labor supply currently (exists/does not exist) in the desired job
classifications. (Explain any job classification gaps that may exist in the local
marketplace)
The positions of (Identify the positions that will be salaried) will be salaried.
All staff will be employed in accordance with state labor law requirements. We (will/will
not) be a union certified operation. Key staff and other necessary management will
require experience in the pet DIY wash and groom service with retail supplies industry.
The positions of (Identify those positions that will not be paid a salary) will be paid
(commission/an hourly wage/on a project basis).
Management & Administrative Support
(Proprietor’s Name) possess considerable core competencies relevant to this business

venture. Resumes of all key principles and management are included in the Attachments.
They demonstrate competencies in the following key operational areas of the business
operation:
26
 Highlight any competencies in the area of product and/or service
 Highlight any competencies in the area of operations
 Highlight any competencies in the area of sales
 Highlight any competencies in the area of marketing
 Highlight any competencies in the area of financial and or business
operations
 Highlight any competencies in the area of human resource management
 Highlight any competencies in the area of organizational leadership
In addition we will also be utilizing the services of area professionals to support the
administration of the business.
We have engaged the law firm of (Name of Law Firm). They have also advised and
assisted us in the legal registration of the business. They will continue to provide for our
legal services as needed.
We have also engaged (Name of Accounting Firm) to support the accounting and tax
reporting requirements of the business.
Regulatory Requirements
Regulatory oversight is significant in the industry. We will make application for all
necessary local, state and federal licenses, registrations and permits.
Our primary regulatory obligations include the following: (List the business specific
regulation relative to the jurisdiction, state, etc. in which you will be located. Typically
these would include: State/Local animal care/health/disease/injury treatment
standards, zoning compliance, environmental regulations, liability insurances, service
contracting regulations/property and animal liability insurances, training staff
certifications/training, facility accreditation/association memberships/certifications,
etc.).
Local, County, State and Federal regulatory contact information, applications and
forms may be found at the following websites:
United States Department of Agriculture (http://www.usda.gov/wps/portal/!

ut/p/_s.7_0_A/7_0_1OB?navtype=MA&navid=AGENCIES_OFFICES)
Virginia Department of Agriculture http://www.vdacs.virginia.gov/animals/index.shtml
Environmental Protection Agency http://www.epa.gov/
FDA (http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/cfrsearch.cfm)
Federal, State, Local Licenses & Permits (http://www.business.gov/register/licenses-

and-permits/)
27
Business Name & Domain Registration (http://www.business.gov/register/business-
name/)
Internal Revenue Service http://www.irs.gov/businesses/index.html
Virginia Towns http://www.statelocalgov.net/state-va.cfm

Virginia Cities http://www.statelocalgov.net/state-va.cfm
Virginia Counties http://www.statelocalgov.net/state-va.cfm
License & Permitting in Virginia http://www.dba.state.va.us/licenses/
State Labor Offices http://www.dol.gov/esa/contacts/state_of.htm
Virginia Business Taxes http://www.tax.virginia.gov/
A copy of (Name of Certification Holder) (Figure (#) of the Attachments) etc.

certification(s) and is included in this document.
All zoning, permits, and inspection, (will be/have) also (be applied for, been fulfilled).
THE FINANCIAL PLAN
Forecasted Start-up Budget
Figures 3 and 3.1 of the Attachments illustrate the estimated start-up budget for (Name of
Business).
Discuss the cost quotes, estimates, and real dollars budgeted for such major expenses
as:
 (Inventory/Supplies/Material Acquisition Costs)

 (Equipment Needed)
 (Lease Hold Improvements/Build-out Costs)
 (Initial Rent Outlay)
 (Initial Operating Permits/Fees/Licenses)
 (Signage)
 (Advertising)
 (Utility Hook-up/Deposits)
 (Point-of-Sale System)
(Provide documentation in the business plan Attachments on as much of the above as

possible, details on needed equipment, blueprints on Lease Hold Improvements and
the layout and design of the business, etc.)
Forecasted Break-Even Analysis
Figure 4 of the Attachments illustrates the monthly and first year break-even point in sales
for (Name of Business). Sales of $(#) and $(#) will be required monthly and annually
28
respectively to reach the break-even point. We have used (conservative/ moderately
conservative/optimistic) monthly and annual sales estimates in our projections.
Forecasted Twelve-Month Cash Flow
Figures 3 and 3.2 of the Attachments (your projections must validate your primary
market research relative to your costs and revenue potential in your specific market)
illustrate the projected first year cash flow of (Name of Business). We feel these are
(conservative/moderately conservative/optimistic) projections.
We project that (Name of Business) will provide an average of (#) (DIY) services per
month and generate an average per-service payment of $(#) (These figures should be
developed from your primary market research of target market, competition and
application of your pricing strategy). We estimate that our (product sales) operation will
generate approximately $(#) in monthly revenue (These figures should be developed
from your primary market research of target market, competition and application of
your pricing strategy). Our (professional services) operation will generate approximately
$(#) in monthly revenue (These figures should be developed from your primary market
research of target market, competition and application of your pricing strategy).Our
annual revenue projection of $(#) falls (within/short of/ beyond) those averages
documented in both the national and state figures.
Key operating expenses for (Name of Business) include (Identify from the following
those operating expenses those that will be most relevant to your business: cost of
goods sold, salaries/wages, payroll taxes, employee benefits, advertising, office
supplies/equipment, insurance, legal/professional services, meals & entertainment,
production equipment/maintenance, vehicles/vehicle expense, rent, facility
maintenance, travel, depreciation, utilities, interest expense, leases/contracted labor,
etc.) National benchmarking statistics (Business benchmark data may be found at the
following web link (http://www.census.gov/csd/bes/) US Business Expenses Survey
information may be found at the preceding web link. Click on the preceding web link
and surf the site to research and obtain relevant business statistics, operating ratios,
and benchmarking data to validate the expense projections you are illustrating) relative
to businesses of our type indicate we are generally (under/in line with/over) those
experienced by similar ventures. (Briefly identify the benchmarks you are in national
operating ranges with and explain any of those where those of your business will be
different)
Our business will need to accommodate both cash and account receivable payment
operations. (Product sales) will be (cash/check/credit card) transactions that will be
collected at the time of the sale. (DIY) sales will be (cash/check/credit card/coin
operated) transactions that will be collected at the time of the service completion and/or in
advance of service. (Professional services) sales will be (cash/check/credit card)
transactions that will be collected at the time of the service completion and/or in advance
of service. We are assuming a relatively quick cash flow from these sales. Our typical
(invoiced) client contracting to service completion to payment collection timeframe will be
(15/30/45/60/90) (days). At risk cost will be collected upon contracting with our
(invoiced) clients. The balance will be paid as service targets are met or at the completion
29
of the service. The loan amount requested will support both our startup costs and provide
us with (#) months of operating capital. This financial foundation will allow us to achieve
a positive cash flow by our (#) month of operation.
Our revenue projections are validated by those benchmarks by the US Economic Census
data (http://factfinder.census.gov/servlet/IBQTable?_bm=y&-ds_name=EC0781A1&-
geo_id=04000US51&-search_results=01000US&-_lang=en&-fds_name=EC0700A1) and
our expense projections are confirmed by our primary market research. We (are/ are not)
confident that they accurately reflect our business needs and impact on its cash flow.
Forecasted Five Year Cash Flow Analysis
Figures 5 and 5.1 of the Attachments (This projection must to be validated by Your
Primary Market Research relative to the costs and revenue potential of your specific
market) illustrate the projected five-year cash flow of (Name of Business). Our
projections are (conservative/ moderately conservative/ optimistic). We assume increases
in sales in years two and three of (#) percent and (#) percent respectively. These
projections reflect our aggressive marketing strategy and commitment to quality customer
service. By years four and five we projected a leveling off of sales to (#) percent and (#)
percent respectively.
The (conservative/moderately conservative/optimistic) nature of the sales projections are

further demonstrated by the fact that by year five we (are/are not) projecting ourselves to
be (smaller/equal to/larger) than the average size (name of state, county or metro area)
pet care (except veterinary) services sector, which includes the pet DIY wash and groom
service with retail supplies services segment, businesses as per U.S. Economic Census
statistics (http://factfinder.census.gov/servlet/IBQTable?_bm=y&-ds_name=EC0781A1&-
geo_id=04000US51&-search_results=01000US&-_lang=en&-fds_name=EC0700A1) or
_lang=en&_ts=331465828783) or
(http://www.census.gov/econ/census02/data/va/VA000_81.HTM#N812).
Variable costs assume (illustrate the increase assumption used) increases as illustrated in
the assumptions. Fixed cost increases are also aligned with (illustrate the increase
assumption used) inflation assumptions.
Our year-end cash balances show (describe nature of growth illustrated) growth over the
five year period with all unused funds being channeled back into the businesses growth.
Forecasted Five-Year Income Statement
Figures 6 and 5.1 of the Attachments (This Projection must reflect Your Primary Market
Research relative to the costs and revenue potential you have validated for your
specific market) provide a Forecasted Income Statement for (Name of Business). You
will note that the revenue projections are based on the business reaching a
(low/moderate/optimistic) sales level for its market area.
30
Our projections demonstrate a (conservative/ moderately conservative/optimistic)
potential for (below average/average/above average) profit margins for the operation.
Forecasted Five Year Balance Sheet
Figures 7 and 5.1 of the Attachments (This Projection must validate Your Primary
Market Research relative to the liability and asset accumulation you have validated for
your specific business) provide a forecasted five-year balance sheet for (Name of
Business).
[Discuss the projected growth of the business assets, owner’s equity, and cash liquidity
of the business as opposed to the business’s debt obligations over the time period
projected.]
THE SOURCES AND USES OF FUNDS
Sources and Uses of Funds Statement
(Name of Business Owner) will provide a cash equity investment of $(#) for the initial
business investment.
We are requesting a total financing package of $(#) at competitive market rates and over
terms to be negotiated. (Information regarding loan programs, requirements, and
terms may be found at the following link:
(http://www.sba.gov/localresources/index.html) Click on the preceding web link to
search the United States Small Business Administration (SBA) for information on
various loan programs and to link to local lenders, micro-lenders, etc. that are
affiliated with the SBA loan programs and for Federal & State Grants & Loans
Resources at (http://search.business.gov/startLoans.html)) $(#) of the requested amount
will be for the startup of the business and acquisition of the necessary equipment and
operating capital as proposed below:
Construction/Lease Hold Improvements/Acquisition $(#)

Service/Retail Equipment $(#)
Startup Expenses $(#)
Retail Product/Animal Service Inventory $(#)
Total $(#)
The additional $(#) will be allocated to operating capital to support the initial phase of the
business’s market entry and growth phase. Because (Name of Business) will generate
(an immediate/ a relatively quick/delayed) cash flow, the amount of operating capital
needed to launch and operate the business will be moderate for a business of this type.
Repayment of the loans will be made through the cash flow of the business. The
(Owner’s Name) will assign as collateral for the requested financing (name collateral
that will be pledged and provide documentation as to its debt free value). A description
of the collateral is contained in Figure (#) of the Attachments. (Attach a description of
31
any personal property/investments or business land/property/equipment that you can
pledge/assign as collateral for a loan)
Personal Financial Statement
Figure 8 of the Attachments contains the Personal Financial Statement of the (Business
Owner’s Name) for your review.
ANALYSIS OF THE RISKS
Risk Analysis
We have consulted with (Name of Professional Property, Casualty and Business

Insurance Agent and the Company he/she represents) to assess the major risks
associated with our business. These risks include the following:
Property & Liability General Liability

Property Damage Liability Fire Insurance
Earthquake/Flood Theft
Fidelity Bonds Surety Bonds
Machinery/Equipment Coverage Workers Compensation
Business Interruption Vehicle Insurance
Errors & Omissions Officers & Directors
Umbrella Insurance Product Liability
Other
We have also consulted with (Name of Professional Health, Life, Disability, and
Financial Planning Agent and the Company he/she represents) to assess the major
personal risks associated with this venture. These risks include the following:
Life Insurance Disability Insurance

Employee Benefits Group Insurance
Retirement Programs Overhead Expense
Key Person Insurance Buy/Sell Agreement Funding
FICA Contribution Rates Unemployment Insurance Rates
Other
Strategies to Address Risks
A risk is typically addressed in one of four ways: elimination, reduction, retention, and
transference. Your insurance and risk assessment professional will be able to help you
devise the strategies that will address the risks you have identified above.
Identify any of the above risk(s) that you will eliminate by dropping a product or
service that exposes you to a particular risk.
32
Identify the above risk(s) that you will reduce by modifying a potential loss by
continuing to assume the risk(s) while changing an element of the risk(s) that will
reduce the likelihood of the severity of the loss.
Identify the above risk(s) that you will retain because the likelihood of a loss is low or
because the cost of insuring against the loss or changing your business operation is
higher than you can afford or want to pay and you will assume the full consequences
of the potential loss.
Identify the above risk(s) that you will transfer to an insurance company.
ATTACHMENTS
ATTACHMENTS THAT ARE REQUIRED IN A BUSINESS PLAN:
 Forecasted Startup Budget

 Forecasted Break-Even Analysis
 Forecasted Twelve Month Cash Flow
 Forecasted Five Year Cash Flow
 Forecasted Five Year Income Statement
 Forecasted Five Year Balance Sheet
 Resumes of Principles
 Executive Summary
OTHER RELEVANT ATTACHHMENTS THAT GENERALLY ACCOMPANY THE

BUSINESS PLAN:
 Personal Financial Statement

 Secondary Market Research
 Primary Market Research
 Patent/Copyright/Trademark Documentation
 Photographs or Sketches of Product/Service/Project
 Resumes of Key Management
 Financial Statement of Anyone Guaranteeing/Co-signing a Loan
 Letters of Customer Intent
 Copies of Leases, Contracts, other Legal Documents
 Offer to Purchase an Existing Business/Purchase Terms Documentation
 Due Diligence Documentation on Existing Business Being Acquired
33
 Blueprints or Layout of Plant/Business/Office
 Price Quotes/Bids on Equipment, Materials & Inventory
 Pricing Schedule
34

Business Plan 9-18-12

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Business Plan 9-18-12

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BUSINESS PLAN

Marketing & Sales Strategy

The Financial Plan

The Sources and Uses of Funds

Analysis of the Risks and Rewards

The Service and Products

Bubble Buddies will aggressively pursue business-to-business contracts through processes

The Target Market

Our target markets continue to grow.

Number of dogs: A local demographic survey (Appendix X) estimated 26,412 households

Our area of operation will be (local/regional/statewide/national/international) in

Our market territory will be (local/regional/national/international) in its geographical

Our targeted (government/municipal law enforcement) customer is (What are the

There are over (#) (local/state/regional/national/international) targeted

Our area of operation will be (local/regional/statewide/national/international) in

Our area of operation will be (local/regional/statewide/national/international) in

Our area of operation will be (local/regional/statewide/national/international) in

To compete (Name of Business) will need to take advantage of our competitor’s

 (The Product(s)/Service(s) they offer)

The Competitive Advantages

We will differentiate (Name of Business) from our competitors by addressing the

Quality Service Perceived Value

Market Share Estimates

MARKETING & SALES STRATEGY

Pricing and Positioning

1. Daily Labor Rate: (Labor rate) $80,000/261 (Billable days) = $306

3. Add in your Profit (20%): $596/divided by .80 {100%-20%) = $745

3. Total Daily Service Charge Rate with Profit Added = $ (#)

Average Price of Our Product Charge = $(#)

Our revenue will be generated by our service and product sales.

Advertising and Promotion

Newspapers Weekly Papers Shopper’s Guides?

Production of the Service

Staffing and Employees

Services will be performed by (employees/other subcontracted independent

Management & Administrative Support

(Proprietor’s Name) possess considerable core competencies relevant to this business

United States Department of Agriculture (http://www.usda.gov/wps/portal/!

Virginia Department of Agriculture http://www.vdacs.virginia.gov/animals/index.shtml

Environmental Protection Agency http://www.epa.gov/

Federal, State, Local Licenses & Permits (http://www.business.gov/register/licenses-

Internal Revenue Service http://www.irs.gov/businesses/index.html

Virginia Towns http://www.statelocalgov.net/state-va.cfm

A copy of (Name of Certification Holder) (Figure (#) of the Attachments) etc.

THE FINANCIAL PLAN

Forecasted Start-up Budget

 (Inventory/Supplies/Material Acquisition Costs)

(Provide documentation in the business plan Attachments on as much of the above as

Forecasted Break-Even Analysis

Forecasted Twelve-Month Cash Flow

Forecasted Five Year Cash Flow Analysis

The (conservative/moderately conservative/optimistic) nature of the sales projections are

Forecasted Five-Year Income Statement

Forecasted Five Year Balance Sheet

THE SOURCES AND USES OF FUNDS

Sources and Uses of Funds Statement

Construction/Lease Hold Improvements/Acquisition $(#)

Personal Financial Statement

ANALYSIS OF THE RISKS

We have consulted with (Name of Professional Property, Casualty and Business

Property & Liability General Liability

Life Insurance Disability Insurance

Strategies to Address Risks

ATTACHMENTS THAT ARE REQUIRED IN A BUSINESS PLAN: