Dog Obedience School Business Plan

Canine Critter College (Tri C) is a dog obedience school located in Eugene. Canine Critter College is unique in its approach to dog obedience. Instead of training the dog, Tri C works on training the owners on how to train the dog, as well as help to establish clear lines of communication between the dog and the owner. Establishing clear communication with the dog, and understanding the dog’s physical, and social, behavior is the most fundamental of the lessons to learn.  

Canine Critter College will leverage this strategy to develop long-term satisfied customers. Through the training philosophy and customer-centric business approach, Canine Critter College will consistently gain market share.

Canine Critter College is forecasted to reach profitability by month seven and will earn $91,000 in revenues for year three.

1.1 Mission

Canine Critter College’s mission is to provide the finest dog training program available. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.

1.2 Objectives

The objectives for the first three years of operation include:

1. To create a service-based company whose primary goal is to exceed customer’s expectations.
2. To increase the number of clients by 20% a year.
3. To develop a sustainable start-up business.

1.3 Keys to Success

The keys to success are providing a reasonably priced service that customers value. A customer-centric business model is the tool to achieve success.

Canine Critter College is a sole proprietorship based in Eugene, OR. Canine Critter College will offer three different levels of obedience training. The training will occur in a group setting, or through private lessons.

Canine Critter College is forecasted to reach profitability by month nine and will generate revenue of $91,000 by year three.

2.1 Company Ownership

Canine Critter College is a sole proprietorship founded and owned by Gerry Gestapo.

2.2 Start-up Summary

Canine Critter College will incur the following start-up costs:

• Computer system with a printer, CD-RW, Microsoft Office, QuickBooks Pro and broadband Internet connections.
• Fax machine, copier.
• Phone line, phone and answering machine.
• Assorted leashes, toys, collars.

Please note that the following items will be expensed; there will be no depreciation applied to them.

Canine Critter College provides dog obedience classes for groups as well as individuals. Tri C offers three different levels of classes:

• Puppy Kindergarten: this class is used to teach dogs the basic commands, as well socialization skills. This course will have an introductory explanation of proper communication techniques.
• Household Obedience Level 1: the goal of this class is to have all members of the family work with their dog in a positive and consistent manner. The family will be taught to establish a leadership relationship with the dog. Much of the curriculum uses the American Kennel Club’s (AKC) Canine Good Citizen Test. This course will offer an intermediate level of communication techniques.
• Household Obedience Level 2: this class will perfect the standard commands such as sit, down, stay, come, and leash walking. This level will also work on healing, and will offer advanced communication techniques.

Canine Critter College courses are all based on a basic idea which can be summed up from a quote from R.D. Shaw, Chief Archaeologist for the Alaska Department of Natural Resources:  “If societies are judged by their systems of order, justice, land rights, and family, the kingdom of the wolf is one of the most sophisticated.”

With this in mind, the courses are used to establish the pet owner’s role as the leader of the pack. Unless the owner establishes dominance, the animal will. Dominance is not punishment, dominance is the law of the pack. It is instinctively understood by all dogs. By showing dominance to the dog in a very responsible, consistent way, you are setting the dog at ease because he/she knows their place in the pack and are at ease around you because they know that you are in control and you will protect them.

The courses will also detail different types of canine social behavior as well as body language, providing the pet owner with insight into ways in which the pet is trying to communicate with them. 

Canine Critter College will target two different groups that have uses for dog obedience training. The first group is people who just received a dog, whether a puppy or a dog new to the owners, and they would like the dog to be trained for easy management and clear communication with the pet. The other group of people are having issues with an existing dog and they are using the obedience training as a way to solve or minimize the issues. In general the distinction is a proactive vs. reactive approach.

4.1 Market Segmentation

The market can be broken down into two segments:

• Dog owners with young dogs: this segment recognizes the value of obedience training, particularly the efficiency of training at a younger age. This segment is typically well educated, with either an undergraduate degree or a graduate degree. Their household income is greater than $60,000. These people are willing to invest time into the pet now to create ease of control for the rest of the pet’s life.
• Dog owners with misbehaving dogs: this group of people either has a dog with control issues and just now has decided to do something about it, or just received a dog and would like to have more control over the animal.

4.2 Target Market Segment Strategy

Canine Critter College will target the chosen segments through a focused networking and advertising campaign that will reach dog owners.

The sales strategy will be based on communicating Canine Critter College’s philosophy for training pet owners to train their dogs. This is Tri C’s competitive advantage because instead of the traditional dog obedience school that trains the dog, Tri C trains the adults in how to communicate with the pet, as well as how to train the dog. This philosophy empowers the owner to be able to problem solve with the animal on their own instead of being held prisoner to a rigid rule based training system.

The marketing efforts will be concentrated on networking activities as well as advertising.

5.1 Competitive Edge

Canine Critter College’s competitive edge is based on their underlying philosophy and the way they present it as being completely intuitive to the client. This greatly effects the quality of interaction between the dog and its owner because the intuitive nature allows the owner to completely understand why they are doing what they are doing.

Canine Critter College carefully details canine social behavior. This provides insight into why the dog is acting like it does. When the dog has some sort of behavior outburst, it is because it is trying to communicate something to the owner in the only way it knows how. If the owner is taught not only why the dog is acting out, but also ways to analyze future actions by the dog, the training session is empowering the owner to have a more sophisticated method of communication/interaction with dog. This is of course recognizing that communication is a two-way street, one element is the understanding of the dog’s behavior, the other is ways that the owner can clearly communicate to the pet.

The key here is helping pet ownersunderstand the reason their dog is acting as they are and providing them with requisite knowledge to problem solve on their own. This distinction is important. Most obedience classes teach you what to do in certain circumstances. Canine Critter College explains the dog’s behavior and empowers the owner to interpret and make a well-reasoned analysis and conclusion of what to do.

5.2 Sales Strategy

The sales strategy will be based on communicating Canine Critter College’s competitive edge to the prospective customers. Training the owners to train the animal is far more effective because it empowers the owner to work with the dog well beyond the classes, as well as allows the owner/dog relationship to grow beyond the training classes because the owner has been taught an effective communication mechanism.

When a prospective customer calls to get more information about the classes, they will be pointed to the website for more in-depth information. The customer will also be offered a list of past customers, as well as the offer to sit in on a class. The ability for the person to observe a class will be instrumental in turning them into a dedicated customer.

5.2.1 Sales Forecast

The first month will be used to advertise Canine Critter College as well as develop outlines for the different sessions within the classes. There will be no sales activity during the first month. The first group class will occur during the second week of the second month. Also during the second month there will be a couple of private sessions. From month three on, there will be a steady increase of sales as the classes develop more participants. Profitability will be reached by month nine.

5.2.2 Marketing Strategy

Canine Critter College strategy will be based on networking and advertising. The networking will take place with different breeders in the area. Gerry will network with many of the local breeders. This will not be difficult as the canine training/breeding community is relatively small and intimate. By forming relationships with the different breeders, the breeders will act as a well respected referral service for Canine Critter College.

Canine Critter College will also do advertising with the local chapter of the AKC as well as with the Humane Society. These will be the initial marketing efforts. After a while, word-of-mouth referrals will take over as the most effective marketing mechanism.

5.3 Milestones

Canine Critter College will have several milestones early on:

• Business plan completion. This will be done as a roadmap for the organization, and will be an indispensable tool for the ongoing performance and improvement of the company.
• Office set up.
• Development of class structure.
• Profitability.

Gerry Gestapo received her Bachelor of Arts degree in psychology from the University of Oregon. Throughout college, Gerry worked with a local veterinarian. She found this work enlightening and challenging. Upon graduating, Gerry knew that she wanted to work with animals. She considered dog obedience as a way of combining her love for dogs with her psychology degree. She moved to Portland and got a job at a large dog obedience school to gain experience in the field. While she was learning the ropes at the organization, Gerry did a lot of research on the subject recognizing that this was something that she wanted to pursue. After one year of work, Gerry felt that she had enough insight to open up her own school and began working on this business plan.

6.1 Personnel Plan

Gerry will be the sole employee.

The following sections will outline important financial information.

7.1 Important Assumptions

The following table details important financial assumptions.

7.2 Break-even Analysis

The Break-even Analysis indicates that approximately $3,600 will be needed in monthly revenue to reach the break-even point.

7.3 Projected Profit and Loss

The following table will indicate projected profit and loss.

7.4 Projected Cash Flow

The following chart and table will indicate projected cash flow.

7.5 Projected Balance Sheet

The following table will indicate the projected balance sheet.

7.6 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 0752, Animal Specialty Services, are shown for comparison.

Ratio Analysis
	Year 1	Year 2	Year 3	Industry Profile
Sales Growth	0.00%	91.77%	18.40%	6.64%
Percent of Total Assets
Other Current Assets	0.00%	0.00%	0.00%	29.75%
Total Current Assets	100.00%	100.00%	100.00%	55.50%
Long-term Assets	0.00%	0.00%	0.00%	44.50%
Total Assets	100.00%	100.00%	100.00%	100.00%
Current Liabilities	37.00%	13.98%	4.69%	23.28%
Long-term Liabilities	0.00%	0.00%	0.00%	22.37%
Total Liabilities	37.00%	13.98%	4.69%	45.65%
Net Worth	63.00%	86.02%	95.31%	54.35%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	96.37%	99.00%	99.00%	27.10%
Selling, General & Administrative Expenses	56.10%	79.68%	71.92%	12.51%
Advertising Expenses	0.41%	0.78%	0.66%	0.29%
Profit Before Interest and Taxes	-9.16%	28.41%	39.37%	1.91%
Main Ratios
Current	2.70	7.15	21.31	1.72
Quick	2.70	7.15	21.31	0.94
Total Debt to Total Assets	37.00%	13.98%	4.69%	56.36%
Pre-tax Return on Net Worth	-39.41%	85.36%	71.11%	5.58%
Pre-tax Return on Assets	-24.83%	73.43%	67.78%	12.78%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	-9.99%	19.62%	27.49%	n.a
Return on Equity	-39.41%	59.75%	49.78%	n.a
Activity Ratios
Accounts Payable Turnover	9.61	12.17	12.17	n.a
Payment Days	27	30	28	n.a
Total Asset Turnover	2.49	2.62	1.73	n.a
Debt Ratios
Debt to Net Worth	0.59	0.16	0.05	n.a
Current Liab. to Liab.	1.00	1.00	1.00	n.a
Liquidity Ratios
Net Working Capital	$10,186	$25,309	$50,395	n.a
Interest Coverage	-11.06	74.74	363.00	n.a
Additional Ratios
Assets to Sales	0.40	0.38	0.58	n.a
Current Debt/Total Assets	37%	14%	5%	n.a
Acid Test	2.70	7.15	21.31	n.a
Sales/Net Worth	3.95	3.05	1.81	n.a
Dividend Payout	0.00	0.00	0.00	n.a