Business Plan for Just Like Home Mobile Dog Grooming Company
Business
Business Plan for Just Like Home Mobile Dog Grooming Company
I. Executive Summary
The dog grooming company was created by a group of friends who are dog owners themselves, and want to set up their own grooming company that can attend to the grooming needs of their pets and at the same time earn profit out of it by offering grooming services to the neighborhood. The business partners decided to name of the company “Just Like Home Mobile Dog Grooming Service” that is located in Richmond Virginia. At present, there are no other pet mobile grooming companies within the area. This company will be the first of its kind and is expected to become successful since there are 227,000 homes with pets in the target area. The partner decided to establish the business in Richmond Virginia because there are many pet owners within the area who seek the professional grooming services for their pets but had to spend time traveling just to bring their pets to dog salons. With this new business, pet owners within the area will no longer have to take time off from their busy schedules just to bring their pets for professional grooming services because the company offers free pick-up and delivery of pets at the convenience of the pet owners. Aside from professional grooming services, the company will be selling pet care products, food, brushes, combs, wardrobe, accessories, toys and treats. At present, holistic food is also increasing in demand in this field of business as many pet owners want to save on their costs by purchasing bulk bags but do not have the means to transport the bulk bags. With the mobile van in place, the company will be able to supply the demands of pet owners. The term “just like home” in the company name means that the pet owners will be assured of personalized grooming services to their pets. The services that will be offered can be compared to the home care that the owners would have done themselves for their own pets.
II. Table of Contents
Introduction
Demographics
Trends
Market penetration
Potential sales revenue
Cash Flow Analysis
Just Like Home Mobile Dog Grooming Company offers professional grooming services that call on pet owners and pets at their residences. The concept of the company revolves around mobility and convenience of pet owners who can save time and resources by simply calling the hotline to avail of the mobile grooming of their pets any time of the day. The services that will be offered include nail clipping, haircuts, flea baths, dental care and aromatherapy. The company will also sell pet merchandise from pet clothes, combs, brushes, accessories, toys and treats. Since holistic food is a continuously in demand among pet owners, the company will also cater to the needs of the pet owners. Most of the breeders and pet owners want to save on their expenses by buying in bulk the dog and cat food but do not have the means to carry the merchandise. The company decided to offer as an add-on service to their clients the delivery of bulk bags to their clients using the van. The company will invest in a fully outfitted van that will include features such as heated bath water, large stainless steel bath tubs, blow dryers, grooming tables and vacuum systems to keep the floors from clutter. The mobile service will meet the needs of the pet owners and their pets by giving the pets the personalized care that they need. The owners do not have to spend time to bring their pets to far-off pet shops for hours and the pets no longer have to be in contact with other pets. The mobile grooming service is a stress-free grooming alternative for both the owners and their pets. Another added feature of this business is the term “just like home” in the company name. This means that the pet owners will be assured of personalized grooming services to their pets. The services that will be offered can be compared to the home care that the owners would have done themselves for their own pets.
The management team is composed of 2 team members. The first team member shall be in charge of marketing and promoting the services of the company. The second team member will be in charge of the accounting and operational expenses of the business. The services that will be provided shall cover nail clipping, haircuts, flea baths, dental care and aromatherapy.
IV. Market Strategy
- Demographics
Opening a grooming enterprise will need advertisements in the usual places through print media, direct mail and internet advertisement. Fliers and business cards should be distributed in the targeted demographic within Richmond community or the 227,000 homes with pets in the target area.
- Trends
At present, there are many independent grooming outfits that offer professional dog and cat grooming services. The increasing demand for mobile grooming services will be profitable for the company. The number of dogs that are availing of professional service these days is climbing up in rapid pace. The grooming businesses and professionals who engage in grooming careers are also increasing in number due to the bigger demand.
- Market penetration
The partners of the business decided to use the abundant information that is available in other professional organizations in this discipline to take advantage of getting in touch with the listed pet owners. Print, media and internet advertisement will be applied. At the same time, distribution of fliers and business cards in malls and community events will boost the potential market of the business. The best marketing strategy is word of mouth and testimonials of competence by the clients. Thus, providing the best grooming service will be an advantage for the business.
- Potential sales revenue
The initial capital is 50,000 U.S. dollars to start-up the business. The business will have to invest in equipment such as the bath tubs, tables, clippers and grooming products. Other expenses will be used for payment of insurance and operating permits. The purchase of a specially equipped van will match the initial investment cost with the opening of a regular grooming shop in a physical locale.
The professional fee for dog is 75- 120, dollars depending on the breed and size of the pet which shall range from small, medium and large pets. The business is expected to bring in about $3000 USD a month since there are no other mobile pet shops in the area.
V. Cash Flow Analysis
Cash Flow Analysis (Grooming and Pet Care Services Only)
Monthly Number of Services to achieve break-even 40
Monthly Gross Sales of Services to achieve break-even $1,980.00
Assumptions
Estimated Monthly Fixed Cost $1,980.00
Estimated Per Unit Variable Cost $ 90.00
1st Year Sales of Services $36,000.00
2nd Year Sales of Services $39,000.00
3rd Year Sales of Services $43,000.00
1st Year Units of Services 400
2nd Year Units of Services 550
3rd Year Units of Services 800
Average Per Unit of Services Revenue $ 45.00
The above computation will show the sales forecast for the first year to the third year of the mobile grooming business. The Monthly Number of Services that is required for the first year to achieve break-even is 40. The Monthly Gross Sales of Services to achieve break-even is $1,980.00. The Estimated Monthly Fixed Cost is $1,980.00 that will cover the payment of transportation expenses, professional fee of groomers and other miscellaneous expenses to operate the business per monthly average cost. During the first year of the business, the estimated 1st Year Sales of Services is $36,000.00. During the second year, the 2nd Year Sales of Services is expected to increase by at least $3,000.00 to achieve the $39,000.00 target. During the third year, the 3rd Year Sales of Services is expected to increase by $4,000.00 to hit the $42,000.00 target. The average per unit of services revenue is $45.00 for every complete grooming services provided to the pets. During the first year, the Units of Services is expected to hit 400 on the average. On the second year, the Units of Services is expected to reach 550. During the third year, the Units of Services is expected to hit the 800 target.
