1.0 Executive Summary
Sage’s Pet Care LLC (“the Company”) will provide a broad range of dog daycare services to the Westmoreland County general public (Pennsylvania). The Company was founded by Matthew Deutsch. At this time, Management is seeking a $175,000 business loan in order to commence operations. Unlike other dog daycare facilities, the Company will operate in both an indoor and outdoor capacity so that dogs have free range of the fenced property.
Operations
The business will generate the bulk of its revenue from the daily charges that are made to clients. The business will charge $35 per day for care of a dog during an eight-hour timeframe. Half day programs will be available as well for $20.
In addition to this revenue stream, the business will also have a number of dog care items available for purchase. Given that dog owners will visit the facilities on the daily basis, this will provide an added level of convenience as they can purchase dog food, dog toys, and related items directly from the Company.
The third section of this dog daycare business plan for further document the operations of the Company.
The Financing
As noted above, the Company is currently seeking $175,000 a capital to commence operations. Matthew Deutsch will contribute $25,000 towards the development of Sage’s Pet Care. The funds will be primarily used for the following:
• Location development
• Furniture, fixtures, and equipment
• Working capital
Moving forward, the Company could easily secure additional capital should Management decide to develop additional locations within the greater Pittsburgh market area. This document assumes that this would not occur within the first five years of operation.
The Future
In order to ensure that the business operates with 100% capacity, the Company will develop extensive referral relationships with pet care businesses including veterinarians’ offices throughout the greater Westmoreland County area. The Company may also introduce overnight dog care services if there is enough demand.
Market Overview
The total market demand, based on population, is $17 million per annum for daily dog care. As of this year, the total population of Westmoreland County is 354,000 people. Among these residents, the median household income is $75,000. Approximately 50% of the population owns at least one dog.
Revenue Forecasts
2.0 The Financing
2.1 Funds Required
The required funds will be allocated as follows:
2.2 Management and Investor Equity
Matthew Deutsch retains a 100% ownership interest in the business.
2.3 Exit Strategies
As this business will produce highly recurring fees of revenue from ongoing dog daycare, there would be an immense demand to acquire this business by a third-party entrepreneur. In this event, the Company will retain a business valuation expert to determine a fair market value for Sage’s Pet Care. From there, a business broker would be retained in order to market the business either to an existing company or someone who is looking to get into the dog daycare industry.
3.0 Operations
Sage’s Pet Care has been designed for provide comprehensive daycare solutions for dog owners throughout Westmoreland County. The Company has sourced a farm facility that will be used to provide services. The entire of the property is fenced so that dogs will be able to run around outside during the course of their stays. The location will also have an ample indoor facility so that dogs can be cared for throughout the course of the year and during inclement weather (including for special needs dogs that cannot be outside for extended periods of time).
The business will have the ability to provide care for up to 35 dogs at any given time. The business will charge $35 per day per dog. For families that have more than one dog, they will receive a discount on each subsequent canine that stays with Sage’s Pet Care during the course of the day.
The Company will also produce moderate streams of revenue from the ongoing sale of dog food, dog toys, leashes, apparel, other dog related products. Management sees an opportunity to generate this revenue given that people will be coming back and forth from their jobs to pick up their dogs on a daily basis.
It should be noted that the business will have a number of procedures and protocols in place in order to ensure the safe handling of pets during their stay with Sage’s Pet Care. Dog owners will be required to submit information regarding emergency contacts and their veterinarians contact information.
4.0 Overview of the Organization
4.1 Registered Name
Sage’s Pet Care LLC. The business is registered as a limited liability company in the Commonwealth of Pennsylvania.
4.2 Commencement of Operations
Sage’s Pet Care will launch operations in the second quarter of next year.
4.3 Mission Statement
To provide exceptional care on a daily basis for dogs throughout the greater Westmoreland County area.
4.4 Vision Statement
To develop Sage’s Pet Care as a widely known and respected dog daycare facility in the target market.
4.5 Organizational Objectives
• Foster ongoing relationships with veterinarians in Westmoreland County for referrals.
• Develop referral relationships with related professionals that deal with a care of dogs.
• In here to numerous safety protocols to ensure the safe handling of dogs at the location.
• Maintain an expensive online presence so that people in Westmoreland County so that dog owners can quickly find the business.
• Provide compassionate care to all dogs enrolled in the Company’s programs.
• Properly onboard staff that have extensive experience working with dogs.
5.0 Market and Industry Analysis
5.1 External Environmental Analysis
This section of the dog daycare business plan will discuss the current economic climate, the industry, the demographic profile, an ongoing competition that the business will face moving forward.
At this time, economic outlook within the United States is moderate. While GDP has increased significantly, there are still issues with unemployment rates in increasing. The Federal Reserve, as well as numerous other government agencies, are taking the appropriate measures to ensure that inflation remains in check while also fostering ongoing economic growth.
It should be noted that this business will enjoy substantial degree of economic stability as dog daycare is an absolute necessity for busy people. Sage’s Pet Care will be located in a strategic area of Westmoreland County so that is easily accessible by people within this market. As has been one of the themes throughout this document, the Company will produce highly referring reams of revenue from the ongoing care of dogs.
5.2 Industry Analysis
There are 173,000 companies that provide specialized pet care services within the United States, including dog daycare. Each year these businesses generate an excess of $15 billion a year while providing jobs to 350,000 people.
One of the ongoing trends within this industry is to provide both half day in full day care. As many dog owners only require services within the morning or afternoon, the Company will provide programs to provide for truncated care during the day. The business will also capitalize in the trend of providing dogs care products in addition to supervisory services.
5.3 Customer Profile
Please note the following demographic profile:
• Has at least one dog that requires ongoing care.
• Will spend $35 per day for dog care.
• Lives within 15 miles of the Sage’s Pet Care location
5.4 Competitive Analysis
The Company will face modest competition as it establishes its operations in Westmoreland County. Foremost, Sage’s Pet Care is operating in both an indoor and outdoor capacity which will be a major differentiating factor for the business. Through its highly controlled operating cost – the business is providing a service services at a very reasonable price as compared to the income of the Westmoreland County population.
6.0 Key Strategic Issues
6.1 Sustainable Operations
Sage’s Pet Care will have sustainable operations as a result of the following:
• The revenue of the business is highly economically stable given that this is an absolute necessity among dog owners.
• An experienced Founder, Matthew Deutsch, who has extensive experience working with canines.
• The business will generate moderate streams of secondary revenue from the sale of dog related products, including dog food.
• The Company can easily scale operations to include new facilities within the greater Pittsburgh metropolitan area.
6.2 Basis of Growth
The Company will expand via the following methods:
• Continued to expansion of the number of relationships that the Company maintains with veterinarians in the target market
• Potential development of additional indoor/outdoor dog daycare facilities within Western Pennsylvania.
• Integration of overnight care services, which would produce substantial additional income.
• Integration of dog grooming services, which can be provided independent contractors.
7.0 Marketing Plan
7.1 Marketing Objectives
• Throughout the life of the business, conduct extensive direct outreach with referring parties throughout Westmoreland County.
• Develop a search engine optimized website that can be quickly found among Westmoreland County residents.
• Enrolled on numerous professional organizations that are specific for the pet care industry.
7.2 Revenue Forecasts
7.3 Revenue Assumptions
Year 1
• Sage’s Pet Care will launch full scale operations.
• Revenue will reach $498,000.
Year 2
• The business will continue to expand its referral relationships.
• Revenue will reach $538,000.
Years 3-5
• By Year 5, revenue will reach $677,000.
• At this time, the Company may establish additional locations as the Company will be at maximum capacity.
7.4 Marketing Strategies
Of utmost importance to the Company’s operations is the ongoing referrals that the Company will receive among veterinarians within the Westmoreland County area. Management will work closely with these professionals in order to ensure that the business receives a stream of business from the onset of operations. To that end, the Company will have a number of brochures and media assets developed that can be distributed to these individuals to showcase the comprehensive nature of the dog daycare offered.
The Company’s website will be a visually interactive platform that showcases each aspect of Sage’s Pet Care’s operations. Video tours of the facility will be featured so that pet owners have an understanding of the level of care that their dog will receive during the course of the day. There will be a number of articles regarding dog care, as well as other matters related to dogs that will naturally elevate the website’s standing among search engines.
In addition to the proprietary website, the business will maintain a presence among all social media platforms in order further increase brand new visibility. The Company will frequently upload videos and images of dogs enjoying their stay at Sage’s Pet Care. Of special importance of these operations is to maintain pages on platforms that allow for ongoing reviews to be left. This will foster a greater degree of trust with potential clients that are looking for dog daycare businesses.
To further increase the Company’s visibility, the business will engage in co-branding opportunities with organizations that help dogs find homes within Western Pennsylvania.
8.0 Organizational Plan
8.1 Organizational Hierarchy
8.2 Personnel Costs
9.0 Financial Plan
9.1 Underlying Assumptions
• The Company will acquire $175,000 of debt capital.
• Matthew Deutsch will contribute $25,000 toward adventure.
• Sage’s Pet Care will have an annual revenue growth rate of 8%.
9.2 Financial Highlights
• Given that these services are required on a daily basis, the business will generate highly recurring income.
• The Company will generate substantial secondary revenues from the sale of dog care products.
9.3 Sensitivity Analysis
Only in a severe and sustained economic reception does Management feel that revenue generation would become an issue. The demand for dog care typically remains incredibly strong as many people consider their pet to be part of their family. The business will generate highly recurring of revenue from its operations. Additionally, the Westmoreland County area has a substantial number of dog owners that are in need of these services.
9.4 Source of Funds
9.5 Financial Proformas
A) Profit and Loss Statement
B) Common Size Income Statement
C) Cash Flow Analysis
D) Balance Sheet
9.6 Breakeven Analysis
9.7 Business Ratios
Appendix A – SWOT Analysis
Strengths
• Substantial demand in Westmoreland County as more than half a population owns a dog.
• The operations of Sage’s Pet Care are highly scalable and additional facilities can be developed as needed.
• An Owner, Matthew Deutsch, who will be able to properly oversee all operations of the business.
• The Company can easily integrate additional services that will drive expanded revenue.
Weaknesses
• Operational complexities given that this is a business that handles animals.
• Ongoing competition for more established dog day cares in Westmoreland County.
Opportunities
• Integration of dog grooming services.
• Providing overnight services.
• Development of additional Sage’s Pet Care branded facilities within Western Pennsylvania.
Threats
• Continued issues with inflation can cause underlying operating cost increase, especially as a relates to both payroll and marketing expenditures.
• Potential liabilities as a result of an on-site injury that could occur during the course of business.
Appendix B – Critical Risks
Development Risk – Low
The location of the company will use has already been sourced by Matthew Deutsch. The primary issue that needs to be addressed is securing the funding sought in this document and completing the build out of Sage’s Pet Care.
Financing Risk – Low
The $175,000 of capital discussed this document will be principally used for the acquisition of assets related to providing proper care for dogs on a daily basis. They recurring nature the Company’s income substantially reduces the financing risks.
Marketing Risk – Low
As noted earlier, the company tends to develop an extensive referral driven marketing campaign within Westmoreland County. This will be complemented by the use of numerous online marketing strategies to create brand name awareness.
Management Risk – Low
Matthew Deutsch is a highly experienced canine care professional that will be able to properly establish the operations of Sage’s Pet Care while also providing an exceptional level of care to all enrolled dogs.
Valuation Risk – Low
The valuation risk is offset by:
• This is an economically insulated business as people require dog daycare on a daily basis.
• The Company will be able to develop additional facilities as needed given the demand in Westmoreland County.
• Additional services that produce substantial contribution margins can be easily integrated as Sage’s Pet Care expands.
Exit Risk – Low
Matthew Deutsch has no long-term intention of selling this business. In the event that he intends to retire or relocate, qualified business professionals will be hired to conduct a valuation while also marketing the business to an appropriate buyer. He would most likely stay with the business for one year after the sale to properly transition ownership.