Queens Technical High School

Business Plan 2019-2020

PetParadise Customerservice.petparadise@gmail.com
Business Plan 2019-2020 1
pet_.paradise 37-02 47th Avenue Long Island City, NY 11101
Table of Contents
Executive Summary
Business Rationale
 Customer Empathy
 Problem Statement
 Ideal State
 Company Goals

About the Business

 Company Overview
 Mission Statement
 Organization
 SWOT analysis

External Environment
 Current Economic Conditions
 Industry Analysis- Real & Virtual
 Competitive Analysis

Marketing Plan
 Target Market & Market Segmentation
 Marketing Mix
 Discussion of Business Risks

Financial Planning
 Break-even Analysis
 Summary-Profit & Loss Statement
 Balance Sheet
 Financial Statements and Charts

2
Executive Summary
In todays society, pets are no longer animals that we decide to take under our wing for and
domesticate, but instead they have grown into more than just that. These pets have turned into
individuals’ family, best friend, childhood friend, their baby, their reason to live for etc. Currently
7.8 billion people worldwide and approximately 57% of the consumers own pets. Each year,
millions of animals are either bought from breeders, pet shops, or are adopted from animal
shelters, showing how there is an excessive demand for pets, lifetime companionships.
Poverty in the United States specifically has fallen by .5%, although it has dropped, it is not such
a drastic change as there are still millions of families and individuals struggling. Pet Paradise
blooms into existence in hope to mitigate these troubling statistics. At Pet Paradise, as a team we
do everything in our power to make it possible for consumers to provide the best for their loved
ones without worrying about money or the integrity of brands that we carry out as distributers in
the market. We do this though our prices, we don’t mark up so drastically on purpose. At Pet
Paradise, we provide the best price for both the best quality and quantity instead of just settling
for quantity with poor quality.
Our company provides the public with everything one might need to provide the finest for their
treasurer. Pet Paradises primary objective is to fill the void in pet’s system that they have due to
the disproportionate amount of factitious ingredients with organic ones. We encourage these new
products with monthly boxes that customers have the option to either buying monthly whenever
they desire or setting up a plan that lasts for months or years. Our corporations break-even is
$429,498.34, translating to 858.17 units. We must accumulate $800,000 in revenue at the end
of this fiscal year.
Through carefully thought out strategies, Pet Paradise will make it in their responsibility to care
for all. We encourage the continuation of pet’s existence as a healthy and satisfied yet spoiled pet.
Pet Paradise, the smart way to go.
-Yours Truly,
Michelle Hernandez, Chief Executive Officer

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  Business Rationale
Customer Empathy
While currently, the United States is modernizing at a fast pace with a flourishing economy, 66%
of the population are middle-class families who struggle to afford essential resources such as
healthy food, education, health care, etc. The media failed to emphasize the awareness of how
limited affordable veterinary and pet wellness services create similar obstacles and how that lack
of access disadvantages millions of people and their pets across the United States1. Pet Paradise
is aware of the ways customers are influenced when making purchasing decisions. An individual
listen to friends, family, co-workers, and reads online reviews when shopping for distinctive
products, specifically food for their beloved pets. They share those experiences with those
around them. Thus, Pet Paradise has created online surveys for new customers to accommodate
their pets’ needs, as well as reaching new customers through social media, leading to more sales
as the customers spread the word of the company. Pet Paradise’s target market, 16- 35 years of
age, became aware of the market and is motivated to deliver a better nutritional option for their
pets. Not only do consumers want to know what is in the bag, but they want to know where it’s
made, how it’s made, and where the ingredients are sourced. However, this demographic does
not have much disposable income. Therefore, Pet Paradise presents itself with an opportunity in
this market. The company’s Petluck monthly boxes (small, medium, and large) allows customers
to support organic pet food at an affordable price. All products dedicated to their pet’s needs are
natural without artificial flavors and additives. Pet Paradise will satisfy customers with high-
quality products.

Problem Statement
While the ease of online and retail shopping, pet parents are overwhelmed by an oversaturated
market in New York alone. According to surveys performed by the National Pet Owner Survey,
“Half (50%) of pet owners surveyed agreed that they consider natural and organic pet foods to be
safer than regular pet food, with 22% strongly agreeing. Two thirds (66%) of pet product

1
Amanda Arrington is the Director of the Pets for Life Program and Michael Markarian is the Chief Operating
Officer for The Humane Society of the United States (humanesociety.org).

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purchasers pay attention to the first ingredient on the package ingredient panel on the pet food
they buy, with 81% of those who purchase natural, organic or eco-friendly pet food adhering to
this practice. Over half (51%) of pet product purchasers feel that Natural/Organic pet foods are
more nutritious than regular pet foods, and 71% are willing to spend extra to ensure the wellness
of their pets.” As the market matures, Pet Paradise sets itself apart, and one way is through
greater transparency in ingredient content and sourcing. In the end, it is all about health. Pets are
ones’ family, and for today’s pet owners, natural products are one more way to keep them
healthy and delighted as long as it is humanly possible.

Ideal State
In the pet industry, natural foods have been growing with several companies such as PetSmart,
Petco, and General Mills that market as artificial colors, flavors or preservatives free. Although
Pet Paradise is similar to those companies, it differentiates itself as the price of this marvelous
natural foods are economical, beneficial, safeguarding customers will be content with the impact
of their purchase. Pet Paradise furthers its impact by partnering with an outside charity, such as
the American Society for the Prevention of Cruelty to Animals to enrich lives through an animal-
human bond, while placing the charity’s name on our products to associate Pet Paradise with that
charity, therefore creating an alliance between the two.

Company Goals
Long Term:
 Pet Paradise’s long-term goal is to eventually increase the company's evaluation by 8%
throughout one year, as well as keeping consumers satisfied with the care that we provide
for their beloved pets. We will keep them satisfied by giving them discounts throughout
seasonal times in the year and coupons and promotional codes throughout the website
and some designed to them specifically when there is a special occasion like their pet's
birthday or the
subscriber themselves.
We ensure consumers
“Your Pet
remain loyal subscribers
Our Passion!”

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 throughout the duration of the company's existence. To remain a strong competitor in the
ambitious pet industry
 Establish Pet Paradise as the central pet supplier for New York City and then to the whole
United States, by the use of social media and attend pet trade shows to promote our
company


Medium Term
 Pet Paradise’s medium-term goal is to send a service quality survey to every customer
within 30 days of their first purchase, to ensure that we take into consideration their
feedback and how to make their next purchase on the website easier.
 Vice President of Human Resources will schedule training courses for each employer on
how to formally interpret surveys

Short Term
 One short term goal is to increase our advertising budget by 4% each month for the next
three months.
 Another short-term goal we need to accomplish is to increase the number of our
subscribers each month by catching their eye through social media and giving them a
discount for their first monthly box.
 Establish Pet Paradise as the central pet supplier for New York City

Smart Goals
 Pet Paradise smart goals are to reduce the amount of time we spend on client involvement

and staff schedules by 5% during quarter one of this year and ultimately by 8% at the end of
the year.

About the Business

Company Overview

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It is crucial for us to take good care of our pets and be committed to them. Every animal needs
love, good care, and food. Our Company, Pet Paradise has an innovative idea that will be both
convenient and beneficial, consisting of travel crates, car seats, blankets, gates, collars, leashes,
etc. We are located in Sunny Side 37-02 47th Avenue, Long Island NY 1101. Our Company
offers a Pet Luck Box that would satisfy the kind of animal you have Pet Luck Box is
specifically, the two pets that discuses are turtles and fish. If your beloved animal has a special
condition you should provide it in one of the questions in our survey and we will take into
consideration when deciding the products, we ship to you. In addition, in our Pet Luck Box we
will combine several Pet supplies with natural ingredients in one single gift box, it will allow
customers to save time and money. Our company service will bring the owners the Pet Luck Box
to the front of their doorstep, instead of them going through the hassle and taking multiple trips
to a variety of pet stores. With our company existing owners will be able to fulfill their pet’s
needs at an affordable price. We will introduce customers with products that best suit their pet
based on the survey that is provided on our website.

Mission Statement
Across the nation, over 38.1 million people either live in poverty or are
in the middle class. The middle class, which makes up most of the
population, struggle to afford basic necessities as is the same for those
families who have a pet. Families clash between affording both care
for their loved ones and their pets. Essentially, the purpose of Pet
Paradise is to provide beneficial products of high quality specifically
to those families, but is not limited to that class only, as all are
welcome to our company.

Pet Paradise’s products that are introduced to the public are made with
love and care in hope to decrease the amount of pets that get sick due to lack of nutrients in their
body. With every purchase you make, Pet Paradise has made it in their power to donate a
specific percentage towards a non-profit charity, The Pet Fund. This charity is dedicated
specifically towards a future where decisions about companion animal medical care needs are
never made on the basis of cost. Thousands of animals are sent to shelters every year, many

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 because of treatable medical conditions their owners cannot afford to find. We want to care for
the pets of our customers but be inclusive as all pets deserve the best care.

Pet Paradise encourages and promotes an extensive array of products, the introduction of the
merchandise is achieved by our monthly box, Pet Luck Box Charm. By analyzing the results of
the consumer’s survey, Pet Paradise is able to assess which products are the best fit for their pet.
Allowing customers to receive the maximum benefits one can expect.

Organizational Chart
Pet Paradise works consistently to make the living of pets and their owners better. The
organization is layered out accordingly, the Chief Executive Officer who makes all major
corporate decisions and manages all company projects. Which then, the CEO assigns the
employees in each department a task during weekly meetings. This type of work will continue on
since it is monitored weekly in each meeting. CEO, Michelle Hernandez, discusses with the Vice

Presidents about what has to be completed from the departments. Additionally, the VP’S inform
those under their department on new apparent tasks that need to be complete or be assisted on by
them. Once the project is completed, it goes back to VP of Administration for revisions, the
number of times that it is revised varies on the quality of work and standards, therefore finally
being viewed by the executive.

Michelle
Hernandez
Chief
Executive
Officer

Ariana Litzy Delgado

Daniel Ramirez Valentina Jessica
Ocampos Vice President Castrillon
Vice President of Pinguil
Vice President of Human Vice
Of Graphics Administration Vice
Resourses President of President of
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Accounting

Wendy
SWOT Analysis
Strengths:
Enthusiastic and Creative Staff Members
 At Pet Paradise, the staff is always looking forward to working with their co-
workers. In the workspace, each employee is delightful and contributes to creating
a positive atmosphere. We inspire one another while constantly showing an
infectious amount of enthusiasm. Furthermore, as customers are becoming more
demanding, our creative thinkers will brainstorm outside of the box solutions.
Employees at Pet Paradise create documents such as the logo, the letterhead, etc.
while using the color scheme to make such documents appealing. One example is
how original and aesthetically pleasing our Vice President of Marketing has
created the website for Pet Paradise.

Prioritizing Customers
 Pet Paradise puts the needs and requirements of our customers ahead of anything
and everything else, providing a personalized experience. We acknowledge and
thank customers of our business from time to time. For example, promotional
offers will be provided during special occasions, such as Valentine’s Day, in order
to demonstrate our gratitude to consistent customers. Pet Paradise is a customer-
oriented business, we serve the clients’ needs, and measure customer satisfaction
levels in order to contribute to the success of the business.

Strong Consumer Relationships

 Pet Paradise is certain that powerful customer relationships are invaluable for the
success of the company. We nurture and cultivate customer relationships. We
want the pets to be satisfied and fulfill their needs to live a good, healthy life.
Ways we will contact our consumers is to communicate either in person or via
email. We will call them by their first name to show a friendly bond between

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 them as valuable customers and Pet Paradise. Additionally, we will ask for
feedback and listen to what our customers have to say. By doing this, it shows
that we are concerned and willing to listen to improve our service in any way
possible. We will address their problems to better their experience with Pet
Paradise.

Weaknesses:
Recognition
 Pet Paradise is an uprising company waiting to thrive. We tend to notify and
inform the public of our great service. Our Vice President of Marketing will share
information about Pet Paradise that will catch an individual's eyes. We will use
distinctive social media platforms, including for customers to be engaged with our
product, motivating them to buy it and recommend it to others.

Tight Advertising
 As a startup company, Pet Paradise has a tight budget which holds us back
from creating advertisements to promote our product throughout the country to its
best potential. Our company has not received any sales due to this issue.
Throughout the course of the next few months, we are expected to have our
website up and running, and start selling our products to the public.

Limited time & Employees

 Pet Paradise only has 10 employees and is able to work for 8 hours each day from
Monday through Friday―excluding holidays. Arriving at our workplace can be
difficult for some since transportation can be delayed due to improvised
situations. However, with such minimal time given, employees are expected to
complete their tasks, given by the Chief Executive Officer, in their own time.

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Opportunities
Increasing the amounts of pets in households
 Pet ownership is on the rise in the United States. They serve people's need to
cherish, love and fight boredom. According to the American Pet Products
Association (APPA), almost 85 million households have a pet, and over the last
30 years pet ownership has
gone from 56% to 68% of
all households. This
increase in ownership
drives innovation in the
market, resulting in a vast
array of new choices and
unique items for pets,
including specialty treats,
bully sticks, vitamins,
supplements and electronic training equipment. According to the APPA, “the
average annual growth rate since 2002 is 5.4%, and revenue has been growing
steadily for well over 20 years. “It is oblivious that the bond between owners and
their lifelong companion is unmeasurable, making them prone to splurge on them.

Trend for natural, organic food for their beloved pets

 Every individual cares for their own health and when having the responsibility for
a pet their health matters. Organic foods provide better quality sources of
nutritional substances that even non- organic, premium brands provide. Many pet
parents love providing organic food to their darling pets for their health, for
example to support canine and feline health by including vitamins. “More than
half (55%) of millennial pet owners are willing to try holistic and natural-branded
nutritional pet supplements before resorting to conventional pet medication.
Nearly three-quarters (69%) of millennial pet owners are more likely to consider
foods whose recipes use naturally-made ingredients over “normal,” mass-
produced foods, versus fewer than half (44%) of owners over 35”. In addition,

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 according to Statista sales of natural and organic pet food in the United States
were forecast to reach approximately 6.8 billion U.S dollars by 2019. Pet Paradise
strongly beliefs that what an individual feeds their pets will have a direct impact
on how he or she looks, feels and acts. By feeding organic food Pet Paradise is
enduring your pet lives a long, happy and healthy life. It is one ingredient in an
overall healthy lifestyle we can help your pet enjoy.

Attending Pet Trade Shows

 Pet Trade shows are invaluable events, it includes the opportunity to network,
collaborate, gain knowledge, develop skills and prepare for the future of the
company, Pet Paradise. Unquestionably, it has become huge in the pet industry.
According to the Center for Exhibition Industry Research, an estimated “13,000
trade shows take place in the United States each year, representing 40% of all
trade shows globally”. Attending trade shows allows the company to increase
brand awareness, present networking opportunities, and it gives a chance to learn
more about the industry one conducts business in. One of the world’s largest pet
grooming trade show is Groom Expo. This event—of more than 170 booths—
showcases grooming competitions (including the PetSmart Groom Olympics)
and educational seminars, therefore, sparking an interest in professionals and
hobbyists such as groomers, trainers etc.

Threats
Changes In regulations can impact the business
 Regulations include occupation safety, health standards, and environmental laws.
They can vary as the government continues to expand and establish new ones.
Taxes, interest rates, and regulations can affect a company. Since taxes will affect
the pay of employees it will cause a decrease in profits and leave less money for
private investments. An increase in interest rates, or even it being established, will
lead to a decrease in consumer spending.
Products are already sold by major companies
 Competition is a major factor. Products are already being sold by other massive
corporations that can affect us by decreasing the amount of our products sold or

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 even decreasing any public interest. Such competitions include Chewy, Pooch
Perks, Woof, BarkBox, etc. These companies are constantly growing while Pet
Paradise is new and has yet to be introduced to society. These major corporations
have hundreds of subscribers in which most are loyal consumers. Pet Paradise
will go hard and strong to gain a similar, or even greater, amount of customer
loyalty.
Increase in price input causing upward pricing
 Price input creates an increase in pricing which is not great for Pet Paradise or its
customers. Having to upward the pricing can lead to an impact on the company in
various ways. The increase in prices can lead to consumers canceling their
subscription. A rise in the prices of these inputs that are independent of output in
this industry will cause the supply curve to shift upward causing costs to increase
at each level of output. As an opposite outcome, a fall in input prices
independently of industry output will cause the supply curve to shift downward.

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External Environment
Economic Conditions
 As of January, 2020 employment levels are currently 61%, increasing rapidly over the
years. The rate of change in goods is 2.1% and out of that 4% has also increased 1.8
percent, the interest rate is 2 % out of 4%. Thus growing a whopping 0.2% since the
beginning of 2020. Currently the Pet industry has a net worth of $75.38 billion in the
United states and is expected to grow within the years to come. Challenges that
companies are struggling with is how to define their brand. Social media has risen as a
marketing strategy, consumers’ ratings about a brand’s quality or integrity are now led
by the very people who will choose whether or not to buy it. Consumers have a big
impact on a company's reputation as they are the ones that decide whether or not to
recommend it to friends and loved ones/ leave a poor review or praise the company in
the review. These factors impact our corporation because we depend on social media
to increase sales and bring in potential customers while also keeping our current ones
loyal, therefore, surviving in the competitive pet industry.

Competitive Analysis
 Characteristics that a virtual marketplace would have are Sale, Transfer or
Exchange. Dealings in Goods and Services, Regular Dealings, Creation of
Utilities, and Economic Activity. Other firms would have blog posts or access to
video equipment that lead to the creation of an interesting commercial. Our
business would be different because we would be only organic products and only
promote those products and try to find what’s best for everyone’s pets.
Businesses sell all types of brands, including those that contain artificial
ingredients. These artificial ingredients are harmful but companies continue to
sell them due to the fact that they only care about making a profit. Pet Paradise is
original in this aspect, due to the fact that because of this, we only carry
companies that are healthy and organic for pets.

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Marketing Plan
Target Market & Market Segmentation

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Marketing Mix
 Products
o Overview: Pet Paradises’ monthly product, Pet Luck Box, is solely based on the
customers results from the survey, any special conditions or allergies their pet has,
and any specific preferences they want us to be aware about. The shipment of these
monthly boxes can be either cancelled or paused for a specific amount of time if the
customer contacts us via email in a week of advancement due to personal reasons or
traveling plans. Prices vary depending on the size that one decides to purchase. The
products in these boxes are hand picked and reviewed before actual shipment to
reduce human error.
 Price
o As of November 29, 2019, the C-Corporation, Pet Paradise marked the development
of their Pet Luck Box to provide consumers with affordable and high quality
products; the pricing was determined with regards to statistics and the current
condition of the economy, therefor ensuring affordability for consumers while still
making a profit. The consumer has the option of paying the total amount upfront in
one payment for the duration of the monthly boxes or paying the fee each month
when they receive our product.
 Placement
o In today’s society, people are always on their phones scrolling on social media apps.
Therefor, Pet Paradise has decided on gaining acknowledgment by the average
person through social media. Potential customers view our informative posts and
captions that are posted by our VP of Marketing. These posts provide our viewers
with promotions and the benefits they acquire by choosing us.
 Promotion
o Through the use specific colors, various pastel and a navy blue, Pet paradise
portrays soft colors to have potential customers view us as a soft and warm hearted
company. Since we know that most of these light colors may be too feminine and
gender based, Pet Paradise chose to incorporate a navy blue to portray to the male
side and be inclusive. Our main target market of consumers is for those specifically
in the middle class and those in poverty. As stated before, this does not mean that it
is limited to those people only, as all potential customers are welcomed to our
company.

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  Discussion of
Business Risks

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Financial Planning
 Financial Write-Up
Startup Budget: Pet Paradise requires
$413,785.20 of capital to maintain successful
operations in its first fiscal year. The
company’s total expenses is a result from the
sum of rent, utilities, and payroll in a 10-month
period. The hefty one of all is payroll with
$400,000 annually. Prior to these recent
calculations, the company’s annual fixed cost
was $435,785.20. However, due to the loss of
VP of Marketing, payroll had to undergo a few
changes which eventually brought down our
fixed cost by nearly $200. Fortunately, since the company has just stepped foot into the pet
industry, Pet Paradise has obtained $20,000 from an investor which could potentially cover
nearly 5% of the total expenses.

Break Even Analysis

As of February 2020, Pet Paradise has
completed the Break-Even Analysis.
With an annual fixed cost of $413,785.20,
the company chose to purchase goods at
wholesale prices to ensure buying at a
cheaper price. The monthly total cost of
goods bought is $216.69 making the
average cost of goods sold per sale
$18.31. With a 75% mark-up rate our
average selling price per sale is $500.48 making our average profit rate of 96.34%.

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Pet Paradise is new to the pet industry and therefore
has not yet made profit or revenue. According to the
analysis, the total sales at break-even is $429,498.34,
translating to 858.17 units. After further discussion,
the company has settled to accumulate $800,000 in
revenue at the end of this fiscal year, almost doubling
the amount to break-even which means the amount of
units needed to reach such a goal will also have to be
doubled.

Balance Sheet
The purpose of the balance sheet is to gain insight
into Pet Paradise and its financial operations as of
February 2020. The company’s total current assets
is $20,331 which includes both cash on hand and
supplies. Fixed assets—including computers,
furniture and fixture, and office equipment—are a
total of $11,275 with a summed up deprecation of
$2,819. Total liabilities encompass the accounts
payable and costs associated with payroll.
Stockholder’s equity has yet to be determined. As
of February 14, Pet Paradise has $31,606 in assets
and $32,155 in liabilities. With time and patience,
Pet Paradise plans on scouting angel investors and
retain a large amount in earnings to provide the
company a significant amount for a safety net.

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 Profit and Loss Statement
As of February 2020, Pet Paradise projects to attain total
sales of $800,000. With a total of $2,197 in total cost of
goods sold after 10 months and an estimated revenue of
$800,000, the total gross profit is projected to be $797,803
with a gross margin of 100%. Several aspects were taken
into consideration when calculating the total operating
expenses—such as rent, salaries, utilities, depreciation and
supplies—all totaling up to $416,935. Due to lack of
discussion on advertisement and promotion, those sections
are currently occupied with a 0. Overall, after corporate
income tax is deducted, Pet Paradise projects to profit
$380,868 in the fiscal year.

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Pricing Guide

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Work Cited Page
https://www.packagedfacts.com/Content/Blog/2017/02/01/For-pet-marketers-the-natural-and-
Organic-segment-is-competitive-catnip-

https://www.franchisehelp.com/industry-reports/pet-care-industry-analysis-2020-cost-trends/

https://www.packagedfacts.com/Content/Blog/2017/02/07/1-in-3-US-Pet-Owners-Millennials-
What-it-Means-for-the-Pet-Food-Market

https://www.statista.com/statistics/548957/us-sales-of-natural-and-organic-pet-food/

https://nimloktradeshowmarketing.com/top-100-trade-shows-list/
https://evoexhibits.com/top-5-benefits-of-attending-trade-shows/
https://www.thebalancecareers.com/best-pet-trade-shows-125842

https://www.worldometers.info/world-population/

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