CHAPTER 1

Introduction

Cats are playing a larger role in our lives, and working people are

choosing to provide them with a good life. Owning a cat can be an extremely

rewarding relationship. A cat has the ability to both calm your nervous system

and provide an immediate outlet for fun and play. Loving families with active pets

and an active conscience are in search of better lives for their pets and peace of

mind for themselves, causing busy cat lovers to flock to an ever-growing number

of cat facilities across the nation.

V&J Cattery is a cat care facility, dedicated to consistently providing high

customer satisfaction by selling high-quality kittens and supplies. And rendering

excellent services such as quality pet daycare, stud services, grooming and

furnishing a fun, clean, enjoyable atmosphere at an acceptable price. We will

maintain a friendly creative work environment which respects diversity, ideas,

and hard work, all at one facility.

In the first year of V&J Cattery, we will be hiring employees and adding

more equipment for the convenience of everyone. In the second year, we will be

adding more equipment and hiring a Veterinarian technician on staff to

administer vaccinations on specified days and tend to any unforeseen

emergencies. And In further more years, we are looking forward to expanding our

facility to accommodate more cats and customers, And opening franchises.

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 V&J Cattery has been established as a partnership in Batangas,

Philippines. It is owned and operated by Vanne karylle Bloetz and Mark japhet

Gonzales. The co-owners are both cat owners for years, both are well-

experienced in cat care. Soon after, they decided to open a cat care facility and

sell high-quality purebred kittens and supplies.

Ms. Bloetz and Mr. Gonzales both owned multiple cats with different

breeds for years. They both are well-experienced in cat care including ear

cleaning, bathing, drying, nail trim, and know how to handle their behaviors

properly. They even feed stray cats and are also members of cat rescuers in

Batangas. When they see stray cats around, they will treat and find them a fur-

ever home with responsible owners. They also know how to handle a business

which makes them both qualified to run a cattery.

V&J Cattery is equipped with well-experienced staff to make sure that your

furry friend is in good hands. Hiring the right and experienced staff who are multi-

skilled and adaptable, deliver more for less and respect customers and co-

workers alike, makes the Cattery have the best customer service experience in

the market and improve its performance. It is a huge advantage not only for the

Cattery itself but also to the customers.

There are lots of breeders and retailers that are selling kittens and cat

supplies everywhere. But how are you sure that the kittens are purebreds and

supplies are safe for your cat? Another one of V&J Cattery’s advantages is that

they breed and sell Quality Tri-coat Persian, Himalayan and Siamese cats that

are very healthy and always have laboratory check-ups before releasing to

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ensure that they are free from sickness and diseases. And, sell organic products

made with natural ingredients.

V&J Cattery believes that what’s good for humans should be just as good

for our pets. They ensure that all their products are naturally handmade products

that are completely vegan, and made without chemicals, parabens, drugs or any

harmful toxins to clean, shine, and soften your furry friend and can fight off fleas,

heal itchy skin, and reduce shedding with these specialized products, and it’s

even safe enough for humans to use. This means the products are reliable and

you can feel good about using these gentle products on your pets.

V&J Cattery has its own Facebook page to distribute products and

services in a wider range. These products and services are also posted in the

marketplace. Presence over the social media channels and the user-friendly

languages makes the Cattery more popular among the buyers. It is very

convenient to owners who don’t have time to visit and stay in the shop for a long

time. They can just place their order online and pick-up the products at the

physical shop for a faster transaction. This is another great advantage in the

Cattery’s distribution.

Another major advantage for V&J Cattery is the lack of strong local

competition. Several retailers carry a small assortment of cat products because

they only specialize in dogs, but V&J Cattery is the only specialty cat service and

product retailer in Batangas. Many items in V&J Cattery’s merchandise

assortment aren’t sold by other local retailers. All products are eco-friendly and

organic which make the prices very affordable and budget-friendly for customers.

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And, since cats are notoriously picky by nature, grabbing toys that don't cost a lot

is a gamble that can pay off big time.

V&J Cattery promotes its products and services not only for profit but also

for helping stray cats everywhere. When you purchase a product or service it is

not only for your own benefit, but you are also helping feed stray cats. It is a

win/win situation. V&J Cattery is very down to earth and committed to helping.

This initiative of the Cattery is an integral part, promoting and positioning itself as

reliable and ethical. Giving back to a cause is a great way to build emotional

connections with customers. Supporting the causes consumers care about, the

Cattery gain their trust, attention, and respect.

V&J Cattery ensures that all products and services are with the best

quality which will benefit the customers for a long period of time and so that they

will surely not regret purchasing it and it also increases the Cattery’s reputation.

Selling quality products is important because it can build trust with the customers,

it can also fuel word of mouth and social media recommendations for more

unpaid advertisements for the products and produce fewer customer complaints

and returns. Because people care about aesthetics, they notice every detail of

the product that is why good quality products will definitely add up to their

purchasing decisions. The customers support and also differentiate the Cattery

from the competition, further supporting their public image and making them

stand out.

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 CHAPTER 2

Marketing

Products/Services

V&J Cattery wants to set itself apart from other animal service facilities

that may offer only one or two types of services and only focuses on dogs. While

talking to several pet owners, I have come to realize they desire the services I

am proposing, but are frustrated because they must go to several different

businesses. The focus of V&J Cattery is day care and breeding. However, the

services we provide will be above and beyond what our competition can offer.

• Kittens: Quality Tri-coat Persian, Himalayan and Siamese cats that are

very healthy, active, playful, litter trained, Bath trained, dewormed and always

have laboratory check-ups before releasing to ensure that they are free from

sickness and diseases.

• Cat Shampoo: Made with Madre De Cacao extract leaves, moringa, VCO,

neem oil, acapulco and guava extract which makes it 100% pure organic and

natural that are perfectly safe for cats and also helps to re-grow fur loss, treats

skin infections, anti-dandruff, anti-tick and fleas, anti-mange and deodorizes the

skin.

• Cat toys: V&J Cattery’s toys are naturally handmade products that are

completely vegan, and made without chemicals, parabens, drugs or any harmful

toxins that are perfectly safe for cats to play.

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• Cat collar and leash: Uses repellent effect of margosa extract which offers

effective protection from ticks, fleas and mites. The active ingredients are

released continuously and spreads through the fur, acting as a natural alternative

to chemical pharmaceutical products. This sturdy collar features a one size fits all

design with a secure lock and several nibs for convenient adjustment, from a

small kitten to a fully grown cat breed. Save time, energy and money from

monthly buying tick and flea medication with the collar.

• Cat litter: Made with 100% Pure Sawdust (Kusot), no chemical added,

eco-friendly, Odorless which makes it naturally organic. The shavings are very

inexpensive and can work very well as a litter box liner. Since wood has a natural

scent, it can often cover up the ammonia smell caused by cat urine.

• Day Care: Provide 70 sq. meters for a fun, safe atmosphere for cats to

spend the day exercising and enjoying the company of other cats with two large

kitty condos and lots of toys to play. Staff will feed, walk, play, and check on cats

as often as requested and automatically send messages to owners to keep them

updated.

• Special Requests: Provide service for pets with special needs including

administering medication, assisting with recovery from surgery, handicaps, etc.

• Stud service: Offers Purebred Himalayan and Persian stud service at a

budget-friendly price. Tomcats are very healthy, vaccinated, aggressive and

proven to give four to six kittens. Female cats should also be vaccinated, free

from tick, flea and mites to ensure the safety of cats in both sides.

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• Grooming: Provide on-site professional pet grooming services with well-

experienced staff that knows how to handle cats with attitude and behavioral

issues.

Market

V&J Cattery will focus on dual-income, traveling professional families with

hectic schedules. Those trying to strike a balance between the demands of their

careers, personal lives and their pets. Our most important group of customers

are those who do not have as much time as they desire to invest in their pets and

are willing to seek additional help regardless of costs. On average, 43% of the

population in the Philippines, owns a cat according to Pet Ownership Asia.

Our target customers are cat owners, not restricted to only one cat per

household. They are working professionals that need reliable, trusting and

convenient pet care available to them to keep up with the demands of their hectic

schedules. There is a need for one-stop convenience.

Pet care has been moderately affected by the economic slowdown that

has taken place since the outbreak of COVID-19 in 2020. This slowdown can be

partly traced back to a slower growth in the pet population in the Philippines

during the COVID-19 crisis as consumers have been less willing and less able to

get new pets during the severe health crisis and have been less financially

prepared for pet ownership due to the difficult economic conditions caused by the

COVID-19 pandemic.

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 The recovery of pet care over the forecast period is expected to be largely

dependent on the growth of the pet population in the Philippines, especially when

it comes to purebred cats and dogs as these pets are more likely to be pampered

by their owners, resulting in more purchases in pet care. Despite growth rates

stalling slightly during the COVID-19 pandemic, however, the dog and cat

population is projected to continue to grow throughout the forecast period,

supporting growth in pet care.

We will not be successful waiting for the customer to come to us. Instead,

we must focus on the specific market segments whose needs match our

offerings. Focusing on targeted segments is the key to our future. Therefore, our

focus and marketing message will be the services and products offered. We will

develop our message, communicate it, and fulfill our commitment to excellence.

The animal care industry is made up of many small participants that are function-

specific. These businesses offer one or two services. There are no businesses

that offer full care, including day care, and in-home care for 24 hours a day.

Current facilities have limited hours, causing a great inconvenience for the

customer. V&J Cattery will change these trends and offer “one stop convenience”

for all their cat needs.

The competition comes in several forms. There are four Pet care facilities

in Bauan and San Pascual Batangas area that offer one or two services for cats

at their location. All of them are mostly focused only for dogs. V&J Cattery offers

complete and total cat services at one location. One-stop high-quality cat care for

customer convenience. This business will begin with a general corporate

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brochure establishing offered products and services. This brochure will be

developed as part of the start-up expenses and distributed to large businesses,

restaurants, local veterinarians and pet stores. There will be a direct mailing to

registered cat owners and a website created. Literature and mailing for the initial

market forums will be very important, with the need to establish a high-quality

look and feel in order to create a trusting sense of professionalism. V&J Cattery

will maintain the latest Windows and Internet capabilities including complete

email capabilities on the Internet to work directly with clients for reservations,

purchasing products online, asking questions, providing information, etc., as well

as a Web page will provide information and maximum exposure of available

products and services.

Industry

V&J Cattery will face a few competitors that are already well known by lots

of cat owners but this will not be the downfall of the cattery but a challenge. V&J

Cattery is down to earth but very competitive. Using the advantages and great

marketing strategy, V&J Cattery will also be a well-known and established cattery

that offers different services and various products that are beneficial and very

affordable for customers.

The benefits of sharing our lives with our pets offers owners affection,

companionship and security. For busy families, professionals and single pet

owners, V&J Cattery offers a peace of mind alternative to leaving their cats home

alone. According to Pet Ownership Asia, as of February 2021, 43% of the

population in the Philippines, thousands of families owns a cat.

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 Studies have shown that having a furry companion can positively impact

owners’ health, but also their lifestyle. It’s not surprising to find out top 3 reasons

to own a pet: ‘To feel less down, less stressed’ (41%), followed by ‘To have some

company’ (36%) and To ‘feel more secure’ (36%). Owners can be confident that

their cats are in the best of hands at V&J Cattery. cats can socialize with

buddies, revel in attention from expert care givers, and enjoy play activities.

The economic trend of pets continues to grow deeply in the pet care

industry and there is no sign of abating according to Euromonitor International.

Pet owners are treating their pets like members or a part of their family

increasingly, whereby pets could provide companionship for their owners,

especially dogs and cats. It is because the companionship of pets gives a

fundamental psychological need for many people under a more atomized and

urbanized living environment. Also, referring to the report of Euromonitor

International, later marriage, elevated divorce rates, the smaller size of family

and the social atomization are the sociological factors that causing the pet

humanization trend. The pet care industry commercializes this trend into

extensive sales of humanized pet products and services. Therefore, many

human characteristics pet products in sale caused by the high demand from pet

owners, as pet owners want to buy similar products that human use for their

‘children’ pets. Pet humanization is the main original cause that arouses other pet

trends in pet care industry, as the pet humanized attitude of pet owners are

affecting the supply of pet care market.

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 Internet or mobile pet care refers to pet merchandises retailing online via

the Internet or mobile applications. Consumers purchase pet care good or

service through the internet by ordering or appointing. Then, the ordered

products would be delivered with package via shipping to delivery address.

Online payment may be required to complete the transaction of online purchase,

debit or credit card, etc. are the common methods to pay online. As the coverage

of Internet access keeps growing and fast development of electronic commerce

(e-commerce), consumers are feeling more comfortable with online purchasing.

Meanwhile, mobile pet care is another spotlight of pet m-commerce. With

the installment of the mobile application software (apps) in the smartphone,

consumers could shop for their pets in a quick and convenient way via the apps.

For most of the leading pet care companies or retailers, they would provide

online purchase service and mobile applications software. Indeed, internet

retailing in pet care is growing resolutely in the global market in particular of pet

food. And Asia Pacific region and North America region are the leading regions in

the internet or mobile pet care according to the article of Euromonitor.

Location

This facility will be established in a growing area in Sambat San Pascual,

Batangas. It is exactly at the middle of Bauan and San Pascual area for the

benefit of the customers. We will service the two growing areas, while capturing

those customers coming into the Public Market. We believe that these areas are

less concentrated with competitors, allowing us easier access to the market.

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 CHAPTER 3

Financial Management

Identification of Risks

V&J Cattery’s major risk is Potential Health and Safety Hazards When

Working with Displaced Domestic Animals such as animal bites and scratches,

animal handling and restraint hazards and sharps-related injuries. The Cattery’s

response is workers can reduce their risk of the occupational hazards associated

with displaced domestic animals by sanitation and hygiene, care of animal bites

and scratches, and wearing of personal protective clothing and equipment. Only

workers who have received proper training in animal restraint, handling, and care

should work directly with displaced animals. Employers, response leaders, and

volunteer coordinators should ensure that only trained, properly equipped

workers are assigned to tasks involving direct animal handling and care.

Financial Statements

The start-up cost of our business will be approximately $102,500 which

includes building, construction and initial training costs. We require approximately

$115,000 of government, partnership and non-profit funding in order to

successfully commence the business. We estimate that approximate $75,000 will

originate from a SEFA grant, $15,000 from a kick-starter/crowdfunding campaign,

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$15,000 through joint fundraising ventures with partners, and $10,000 from direct

partnership donations and investments.

STARTUP COSTS
V&J CATTERY
Item Estimated Cost
Equipment and Supplies
Cash Register Php. 20,000
Computer 10,000
Printer 5,000
Weighing scale 10,000
Grooming kit (2 @ Php.1,500) 3,000
Cage 20,000
Personal protective equipment 3,000
Supplies 10,000
Subtotal Php. 81,000

Furniture and Fixtures

Chairs (8 @ Php.1,000) Php. 8,000
Tables (3 @ Php. 2,000) 2,000
Shelves 10,000
Subtotal Php. 20,000

Remodeling
Drywall replacement Php. 10,000
Electrical work 10,000
Paint 5,000
Grooming area 5,000
Partitions 10,000
Subtotal Php. 40,000
Legal and Accounting Fees Php. 10,000
Total Php. 151,000

FORECASTED DISBURSEMENTS
V&J Cattery
May 2021

Disbursement Amount
Cost of goods Php. 5,000
Utilities 5,000
Salaries 20,000
Advertising 1,000
Supplies 5,000

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Insurance 1,000
Payroll taxes 1,000
Other 500
Total Php. 38,500

PERSONAL FINANCIAL STATEMENT

V&J Cattery

Assets Liabilities
Cash Php. 50,000 Bank Loan Php. 50,000
Checking Account 45,000 Credit cards 30,000
Certificate of 10,000
Deposit
Stock 30,000
Computer 10,000
Equipment
Coin Collection 6,000
Total Assets Php. 151,000 Total Liabilities Php. 80,000

Total Assets – Total Liabilities = Net worth

Php. 151,000 – Php. 80,000 = Php. 71,000

FORECASTED RECEIPTS
V&J Cattery
May 2021

Cash sales
Quantity sold
Price Total
Cat Litter 50 Php. 40 Php. 2,000
Cat Leash 20 100 2,000
Cat shampoo 20 250 2,500
Grooming fee 20 500 10,000
Stud fee 5 2,000 10,000
Subtotal Php. 26,500
Accounts Php. 5,000
Receivable Php. 5,000
Bank loan Php. 36,500
Total

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 PRO FORMA CASH FLOW STATEMENT
V&J Cattery
May-October 2021
Cash Receipts May June July August Septembe October
Php. Php. Php. Php. r Php.
36,500 38,000 38,000 40,000 Php. 50,000
43,000
Cash Disbursements
Cost of goods Php. Php. Php. Php. Php. 5,500 Php.
Utilities 5,000 5,000 5,000 6,000 5,000 6,000
Salaries 5,000 5,000 5,000 5,000 20,000 5,000
Advertising 20,000 20,000 20,000 20,000 1,000 20,000
Supplies 1,000 1,000 1,000 1,000 6,000 1,000
Insurance 5,000 5,000 5,500 5,000 1,000 6,000
Payroll taxes 1,000 1,000 1,000 1,000 1,000 1,000
Other 1,000 1,000 1,000 1,000 5 1,000
Total 00
Disbursement 500 500 500 500 500
s Php.
Cash Flow Php. Php. Php. Php. 39,000 Php.
38,500 38,500 39,000 39,500 Php. 4,000 39,500
- Php. - Php. - Php. Php. Php.
2,000 500 1,000 500 10,500

PRO FORMA INCOME STATEMENT

V&J Cattery, 2021
Item Year 2 Year 3
Revenue Php. 700,000 Php. 900,000
Cost of goods sold 250,000 300,000
Gross profit Php. 500,000 Php. 600,000
Operating expenses:
Salaries Php. 240,000 Php. 240,000
Utilities 60,000 60,000
Advertising 12,000 12,000
Supplies 55,000 60,000
Insurance 12,000 12,000
Payroll taxes 12,000 12,000
Other 6,000 6,000
Total operating Php. 397,000 Php. 402,000
expenses

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 Net income before taxes Php. 103,000 Php. 198,000
Taxes 25,750 49,500
Net Income / Loss after Php. 77,250 Php. 148,000
taxes

PRO FORMA BALANCE SHEET

V&J Cattery
December 31, 2021

Assets Liabilities
Current Assets Current Liabilities
Cash Php. 50,000 Accounts payable Php. 80,000
Accounts receivable 50,000
Less allowance for Long-term
uncollectible accounts -5,000 liabilities Php. 124,000
Inventory 500,00 Loans payable Php. 204,000
Total current assets 0 Total Liabilities
Php.
Fixed Assets 595,000
Equipment
Owner’s Equity Php. 200,000
Less depreciation
Php. 10,000 Vanne Bloetz 200,000
Total Fixed Assets
- 1,000 MJ Gonzales
Php. 9,000 Total Liabilities Php. 604,000
Total Assets
and Owner’s
Php. Equity
604,000

Funding Request and Return on Investment

We expect sales growth will be slow to moderate, and that cash flows will be

steady with annual sales projected to equal Php. 60,000, Php. 72,250 and Php.

148,000 for the years 2021 – 2023.

Once the company reaches a sufficient level of profitability and accumulates a

cash reserve, it plans to invest 50% of profits in research and development of

new products, existing product and operational improvements, and to expand

marketing and sales efforts from local to foreign markets. 38% of profits will be

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invested in low risk financial instruments. 10% of profits will be used for

employee bonuses. The remaining 1% will be used to support non-profit

organizations that promote the health and welfare of pets in the Philippines.

These expenses will be itemized in the later years of the business plans.

In the event that the company does not earn a profit, additional funds will be

sought to finance research and development activities. 100% of funding obtained

during break-even or loss periods will be used for V&J Cattery, while the

investment in financial instruments, employee bonuses and charitable giving

activities will be foregone.

The following table summarizes key financial assumptions, including payment for

services in cash or credit card. We assume fast-growth and large demands in

this new specialized service.

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