BP JANUARY 2023

  
Tables

1. Introduction 2

2. Furever Home: Pet Sitting Service 3

3. Customer Segment, Targeting & Positioning 4

4. Assessing Business Environment 5-7

5. Financial Techniques 8-9

6. SWOT Analysis (Strength & Weakness) 10

7. Competitive Advantage 9

8. Controversies of SWOT Analysis 10

9. Conclusion 11

10. Appendix 12

10. List of References 13-14

1
Introduction

All businesses and organizations begin with an idea of a product or service to be

provided. Most businesses need investors to enable them get the funding for

operations and expansion. However, the ability of a business to present a feasible

and viable business plan is essential to getting investors to invest in the business

idea, product or service. This report presented the pet sitting business idea: Furever

Home to potential investors justifying their involvement in business, assess the

competition it faces and so on. The report adopts some models such as STEEP,

Porter Five Forces, SWOT analysis among others.

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Furever Home: Pet Sitting Service

It is believed that more than half of all people in the world currently own at least one

pet (Growth from Knowledge, 2016). Seventy percent of American households will

have pets by 2021, up from 68 percent in 2016. (Burgess, 2021).

Businesses that provide pet sitting services allow busy families to travel without

worrying about their pets. One of the responsibilities of a pet sitter is to visit a client's

home and care for their animals, whether they have dogs, cats, or something else

entirely. Pet sitters are responsible for providing basic care for pets, including

feeding, watering, playing with, and (in the case of dogs) walking them. It's important

for a pet sitter to keep their clients happy by giving them regular updates on how

their pets are doing.

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Customer Segment

With their increased education and disposable income, members of Generation Z

are propelling the pet care sector to new heights. Most members of Generation Z

don't have someone close by, therefore they're on the lookout for a friend. This need

is being filled in the lives of today's Gen Z by their pets. The current generation

prefers to socialise with their pets rather than with other people (Grand View

Research, 2022)

Dogs in particular have long been considered a man's best friend, and the growing

tendency of people delaying marriage into their 40s and 50s has increased demand

for pets. Many people are spending a lot of money on their dogs because they do not

have a life partner or a child to care for.

Targeting

• Family consumers with children under 18

• Family consumers with no children under 18

• Consumers living alone

• Consumers with roommates

Positioning
Furever Home has positioned its service in a unique stand in the online market,

providing pet sitting and boarding with the use of website and social medias to

connect with customers. In addition, professional certification can help businesses

stand out from the crowd and distinguish as professionals with training and a higher

level of standards (Grenier, 2022).

4
Assessing Business Environment

PESTEL Analysis

Political: As of the year 2020, over 63.5 percent of Malaysia's population identified

themselves as practising Muslims (Statista Research Department, 2022). As a result

of the influence of Islamic Laws, Muslims are not permitted to keep pets in their

homes, with the exception of those pets that are needed for hunting and security

purposes.

Economic: There are two ways in which the impact of per capita disposable income

on industrial development might arise, and both of these approaches contribute to

the expansion of the pet market. One factor that influences consumers' ability to

spend money is the amount of disposable income that is earned by each individual.

The capacity of customers to make purchases is the driving force behind production

decisions made by businesses, which then adapt their offerings in response to shifts

in customer demand. As a result, it can be seen that the spending power of

customers in the pet industry rises together with the per capita disposable income

thanks to the growth of the industry (Zhang et al, 2022).

Those who live in a world with a fast pace of life often find that they do not have the

time or energy to hang out with their friends and family or have meaningful

conversations with them. Pets are the most dependable companions when it comes

to those times when children and teenagers find themselves in situations that cause

them to feel isolated and under a lot of pressure. So, it should not come as a

surprise that an increasing number of households now have pets. The pet sector is

one of the most stable industries around the world, and it will continue to gradually

expand in the next years.

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The rapid expansion of the internet is having an effect at this time on how individuals

find pet sitting and boarding services. This is a consequence of technological

advancement. In the past, people who needed pet sitting or boarding had to take

their animals to a pet hotel or to someone else they knew. However, with the rapid

development of the internet and the rise of one-stop services, people began to rely

on booking online.

Environmental: In order to avoid drawing the serious, reputation-damaging criticism

that can come from relevant stakeholders, the company should adopt responsible

production practises, encourage responsible consumption practises among its

targeted consumers, try to improve its brand image on sustainability grounds, and

ensure full compliance with both international and local environmental regulations.

In order to legally possess a dog in Malaysia, one must first obtain the appropriate

licence (DBKL, NA). The number of permitted pet dogs in Malaysia is only believed

to be between 20% and 30%, according to the information compiled by the local

government. If the company is being investigated, this puts a large number of dogs

in immediate danger of being seized by the local authorities.

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Porter’s Five Force

Due to minimal brand recognition, low initial capital investment, and low consumer

switching costs, the barrier to entry is quite high. Because there is no exclusive use

of technology or materials, the company runs a greater risk of seeing its market

share eroded by competitors (Hayes, 2022).

Since pet boarding and hotels are the more usual and established choices, they

have more negotiating leverage. In addition, not all consumers may feel safe

handing out their keys to a complete stranger.

Customers face a substantial substitutes threat because they can quickly switch to

indirect competitors at no additional cost to themselves by relying on friends and

family.

Dog owners have a moderate amount of bargaining power because customers can

review their service and drive down prices, but they still need to receive the best

possible service from their pet sitter.

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Financial Techniques

This section adopts investment appraisal (Pay Back Period Rate) and break-even

analysis as financing techniques.

Investment Appraisal (Pay Back Period)

Payback Period = Initial Investment / Annual Cash Flow

Initial Investment:

 Equipment (cleaning, pet essentials, toys) RM 500 (~GBP 91.5)

 Training RM3000 (~GBP 550)

 Advertising RM 1500 (~ GBP 270)

Forecasted Cash Received:

 Pet boarding RM 80 per night (~GBP 14.6)

 Pet sitting RM 60 per run (~GBP 11), stay overnight RM 100 (~GBP 18.2)

 Transportation (for boarding) RM 10 each way (~GBP 1.8)

Let’s say GBP 3,072 can be made per year.

Payback Period = 911.5 / 3072 = 0.30

From the above calculation and analysis, the payback period will be 3 years. The risk

is higher when the payback period is longer as the decision rule is to minimize the

time taken for the return of investment.

Break – Even Analysis

Break-even quantity = Fixed costs / (Sales price per unit – Variable cost per unit)

8
For example, each pet sitting charges GBP 11, while the two-way transportation

costs GBP 2.7, making a gross profit of GBP 8.3 on each pet sitting service.

Let’s put other expenses such advertising, equipment, rent, utilities at GBP 611 per

month. Then divides that by the gross profit of GBP 8.3 that makes on each petting

service. So, the break-even in terms of unit sales is 73.6 pet sitting per month.

9
SWOT Analysis (Strength & Weakness)

The convenience of a pet sitting service is twofold: both the consumer and the

business owner. Pet sitters save on overhead costs like rent and property

maintenance by operating from their own homes. Customers can save both time and

money by using a mobile or online booking service, which eliminates the need for

them to be present at the time of booking.

Mobility is both a strength and a potential vulnerability. A lack of a permanent

storefront reduces the frequency with which customers encounter the company. A

pet sitting service can't hope to succeed without extensive marketing via methods

like fliers and web ads.

Having a mobile presence at the outset provides excellent potential for growth. If

things are going well, this will make it possible to open a brick-and-mortar storefront

where consumers may bring their pets. It's possible to attract a lot more clients if the

storefront is always visible. Adding more services like grooming, boarding, and

training would be a great way to grow the company.

Apparently Christmas, Easter, and the summer are going to be the major travel
times, thus seasonal demand fluctuations could be a problem.

10
Conclusion

The above-mentioned SWOT analysis and the fact that the payback period of the

business is three years both indicate that the risk associated with this business is

quite low. As a result, Furever Home is free to move on with the proposed business.

In conclusion, this report contains a number of models and ideas that are restricted

in the sense that they might not be realistic when applied to actual life situations.

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Appendix

(Double click to show PowerPoint presentation)

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References

Growth from Knowledge. (2016) Man’s best friend: global pet ownership and feeding

trends. Available from: https://www.gfk.com/insights/mans-best-friend-global-pet-

ownership-and-feeding-trends [Accessed 22 November 2016].

Burgess, P. (2021) American Pet Products Association Releases Newest Edition of

National Pet Owners Survey. Available from:

https://www.americanpetproducts.org/press_releasedetail.asp?id=1242 [Accessed

22 June 2021].

Grand View Research. (2022) Pet Sitting Services Market. Available from:

https://www.factmr.com/report/pet-sitting-services-market [Accessed Oct 2022].

Grenier, M. (2022) Understanding Pet Sitting Certifications. Available from:

https://www.timetopet.com/blog/understanding-pet-sitting-certifications [Accessed 25

February 2022].

Statista Research Department. (2022) Share of Malaysian population in 2020, by

religion. Available from: https://www.statista.com/statistics/594657/religious-

affiliation-in-malaysia/ [Accessed 5 October 2022].

Zhang, W., Cao, H. & Lin L. (2022) Analysis of the Future Development Trend of the

Pet Industry. Advances in Economics, Business and Management Research 648(7):

1682-1689. DOI: 10.2991/aebmr.k.220307.275

DBKL. (N.A) MANAGING DOG OWNERSHIP LICENSE. Available from:

https://edog.dbkl.gov.my/edog2017/dog-license.php#tanggungjawab [Accessed from

N.A.].

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Hayes, A. (2022) Barriers to Entry: Understanding What Limits Competition.

Available from: https://www.investopedia.com/terms/b/barrierstoentry.asp [Accessed

30 December 2022].

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