Animal Day Care Business Plan

Doggie Pause is a canine daycare facility catering to professionals who have disposable income and the desire to provide quality care for their pets while they are work. It is a response to a real market need in a high-end high-income market.

1.1 Objectives

1. To launch the business and develop sales approaching $25K per month by the end of the first year.
2. To break even in the second year, and be profitable by the third year.
3. To increase sales by 20% per year in the second and third year while also becoming profitable.

1.2 Mission

We will be the leaders in the market of canine care for the upscale community by providing a positive environment for the animals that we house. Our operations will instill in owners confidence in our ability to care for their pets in appropriate ways. We will control significant market share and increase profit as we grow and expand. We will develop our business conservatively, financing our growth through operational revenue.

1.3 Keys to Success

1. The initial location will be in an upscale community on the outskirts of the metropolitan area.
2. We will cater to the needs of our canine owners as much as possible.
3. We will uphold the statement ‘the customer is always right’ because when it comes to canines, owners know best.
4. The business finances will be run in an organized and timely manner.

Doggie Pause will be established as a Subchapter S corporation owned in equal shares by two founders, Barque Oldeyeller and Rufe Rintintin. We are working with the local legal firm Akita, Shar-Pei, Pug & Kesshond, to establish the legal entity.

2.1 Start-up Summary

The start up for Doggie Pause will be simple and cost efficient. Rent and utilities will be the main expense, which will consist of a large building space and office. There will be many advertising expenses in the beginning that will promote the service, and this expense will lessen as months go on and people become aware of our service. Start-up inventory will be mainly shampoo and grooming supplies, food for the dogs, and other supplies like bedding. Assets will be the kennels and play structures for the dogs, and the bathing facilities.

Loans will be needed to start up the company, and we will also be investing some of our own funds. At this point we’re planning to invest $10,000 each as founders, and to take a small business loan of $42K. The loan will be paid off over three years as shown in the cash flow.

Doggie Pause offers upscale dog owners a place where they can leave their pets while at work, and away for weekend trips or on vacation. It also offers feeding and exercising, as well as washing, grooming and low-level veterinary services. The location will be a large lot on the outskirts of a high-income residential area. Our projections include a heavy rent because of the location requirements. Customers pay by the day, by the hour, or by the month. Our assumption is that the average customer generates about $250 per month. 

The market for Doggie Pause is all of the dog owners in the metropolitan area and surrounding areas of the city. We believe that this is going to be 2/3 of the population, and we have a goal of gaining a 50% market share. We have a target of a 20% yearly profit increase as the business continues.

4.1 Target Market Segment Strategy

We have chosen our target market because they own canines and have the ability to afford a service such as Doggie Pause. We are aware that our service is an extra in life, not a necessity. We anticipate and expect to cater to the upper-class citizens within our geographical area.

4.2 Service Business Analysis

Our familiarity with this business indicates that the service we offer is not currently available anywhere within the metropolitan area. We think our marketing problem will be more a matter of making dog owners aware of the Doggie Pause, than it will be related to the competition.

4.3 Market Segmentation

Our target market consists of canine owners that have the financial capabilities to care for their dogs in an elaborate manner. Most will be from double income homes with high profile jobs that require an extensive amount of time away from the home. Our target market consists of men and women primarily between the ages of 35 and 65. They live in the upscale suburbs surrounding the metropolitan area. Our market segment customers will lead a lifestyle in which their canines play a large part, and these pets are often seen as “children” by their owners. 

4.4 Competition and Buying Patterns

Our real competition is owners choosing to leave their dogs at home unattended. We recognize that only relatively wealthy people will be interested in spending an average of $250 monthly to provide daycare for their dogs. Still, there should be sufficient market.

Doggie Pause will focus on the geographical market of upper-class suburbs surrounding the metropolitan area. Our initial site will be in West Linn, a suburb of Portland. Our target market consists mainly of men and women ages 35-65.

5.1 Competitive Edge

Doggie Pause is the first canine daycare facility of its kind. Never before has there been a place where a canine owner could take their dog to be cared for, for the day. The owner feels no guilt in leaving the dog because it is a secure, safe and fun environment.

5.2 Sales Forecast

Sales are based on an hourly fee for each dog. There will be a $15.00/hour charge for the “day care.” This includes the care of the dogs, and grooming services. Forecasted sales are based on the estimated number of dogs that will be cared for daily, and an average of how many hours each dog will be housed per day. There is an assumption that we will initially be offering services Monday through Friday, 7 AM  to 6 PM, with time for owners to drop off and pick up their pets before and after work. Sales will increase as months go on, due to an increase in number of dogs per day that we are caring for.

Services will expand to include weekends and long-term “vacation” boarding as the need and demand arises.

The management team will consist of the two co-founders, Barque Oldeyeller and Rufe Rintintin. We do not anticipate taking on other managers until locations are opened in other metropolitan areas. As we grow we expect to need outside guidance in the areas of accounting and financial advising. 

We want to finance the start-up of our company mainly through personal investment and a short-term business loan.  We think this is a good risk/return situation and we will provide the necessary personal guarantees to secure the business loan. We will finance growth through the collection of the fees for our services. We understand that without these payments we will not be able to be a profitable business.

7.1 Important Assumptions

Our important financial assumptions are shown below.

7.2 Break-even Analysis

According to our break-even projections, we need more than $12,000 in monthly sales to break even. We think this is a manageable sales amount. Furthermore, a significant portion of our fixed cost is our own salaries, so that reduces risk as well.

7.3 Projected Profit and Loss

The projections show how we intend to almost break even in the first year (a loss of less than $1,000), make a small profit in the second year and show profit of 9% on sales in the third year. We are confident that even though we have a loss in the first months after opening, we will be profitable in the future as years go on and business increases.

7.4 Projected Cash Flow

For Doggie Pause to be successful we need a steady growth in clientele. Without customers bringing in their canines we have no cash flow, no profit, and no business. The cash flow depends on a bridge loan in mid-year from the founders, to be repaid at the end of the year.

7.5 Projected Balance Sheet

The projected balance sheet shows stability and a gradual increase of net worth.

7.6 Business Ratios