Microsoft Word - Business Plan 2

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Patrick Eghlidi, Jessica Hernandez, Melissa Ward,

Amber Homeres-Brinkley, Matt Lewis, Nathan Emmet

BA101 Johnson 12:00PM

October 1 – November 24, 2009

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Table of Contents:

Key Strategic Concept Page 4

Executive Summary Page 4

Organizational Issues Pages 5 - 6

Name Page 5

Organizational Form Page 5

Our mission Page 5

General Objectives Page 5

First Year Objectives Page 5

Two to Three Year Objectives Page 6

Four Years and Beyond Page 6

Business Management Plan Pages 6 - 9

Organizational Structure & Plan Pages 6 - 7

Corporate Governance Policies & Assurances Page 8

Key Advisors & Supportive Services Page 8

Organizational Responsibility Page 8

Operations Pages 8 - 9

Market Feasibility & Viability Pages 10 - 12

Service Description Page 10

Current Development Page 10

Target Market & Segmentation Page 10

Potential Annual Growth Pages 10 - 11

Differentiation Strategy Page 11

Promotion Strategy Page 11

Distribution Pages 11 - 12

Purchasing Methods Page 12

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Table of Contents Continued:

Marketing Implementation Plan Pages 12 - 13

Sales Tactics Page 12

Service and Warranty Policies Pages 12 - 13

Ongoing Market Evaluation Page 13

International Element Page 14

Financial Plan Pages 15 - 16

Capital Budgeting Page 15

Operational Cash Flows Page 15

Aggregate Funding Page 15

Contingencies and Cash Flow Sensitivities Pages 15 - 16

Financial Controls & Management Practices Page 16

Financing Sources & Form Page 16

Capital Structure Page 16

Long – Term Financial Strategy Page 16

Critical Risks, Problems, and Assumptions Pages 17 - 18

Appendixes

Appendix A: Critical Events & Milestones Graphic Page 19

Appendix B : Organization Chart Page 20

Appendix C: Product Differentiation Chart Page 21

Appendix D : Perceptual Map Page 22

Appendix E : Capital Budgeting Page 23

Appendix F : Operational Cash Flows Page 24

Appendix G :Pricing & Food Cost Page 25

Appendix H : Potential Market Calculation Page 26

Appendix I: Employee Amount & Cost Page 27

Appendix J: Facility Layout Page 28

References Pages 29 – 30

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Key Strategic Concept

Choice Dog Care is designed to be the leader and trend setter in its own newly created

market of truly quality based dog day care services. The idea that “man’s best friend” deserves

just as much attention and space as an average child during working hours is an idea that many

people will agree with, offering the same quality care to their dogs that childcare offers to their

children is one of the key focuses of Choice Dog Care. Giving people the choice and opportunity

to provide their dogs with happiness and exercise while they are at work is something that dog

owners and lovers will not deny their pets. This opportunity to truly revolutionize the way dog

day cares are thought of is what Choice Dog Care is all about. Current market trends show that

people are spending too much for too little, the strategy of charging a small amount more for a

day’s worth of care that far exceeds our competition is the key to success. Small facilities, old

toys and play structures, small staffs, and a lack of food and treat qualities are a few of the many

problems with current dog day cares. We plan on changing this, with a large facility, new and

more interactive toys and structures for the dogs to exercise with and around, a large enough

staff to keep a good eye on all of the dogs as well as high quality foods without fillers and meats

that do not qualify for human consumption, we will be able to offer the best quality care in the

Portland Tri-Met area. Instead of focusing on grooming, retail sales, and training, we will focus

on what our customers want in the first place; a day care for dogs.

Executive Summary

Currently in the Portland Tri-met market for dog daycares there are no high quality

services being offered. This allows Choice Dag Care to establish and develop the ultra high

quality dog daycare service in the Portland Tri-met area with a 100% market share in this quality

based segment while utilizing only 0.09 – 0.4% of the estimated potential customer base. The six

investors will execute this opportunity with an initial investment of $250,000.00 from personal

savings. We will take a small loan out from a public bank of $114,180.00 so the total of

$364,180.00 will get our business going all the way through the second quarter of the first year.

By the end of the first quarter of the second year we will maintain 0.14% of the possible clientele

in the area, pay back the loan, and all six investors will have earned back their portions of the

initial investment of $250,000.00. We will maintain 100% of the market share at this time as

well which will allow us to continue to be very profitable. Expansion can be reached by the 1

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quarter of the 3

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year allowing for two facilities offering our service to the Portland Tri-Met

area. Through these two facilities we will be able to post annual revenues about $2 million while

only accessing 0.4% of the potential market in the Portland Tri-Met area, with further expansion

beyond the three year estimations there is only more profit to be made and more potential market

to control. The six investors are all qualified and capable of running this business because we all

have retained knowledge from Portland State University’s School of Business which is an

extremely innovative program. Combined we have over 10 years of experience in business and

individually posses the necessary skills to exceed at our elected positions within the company.

To maintain our market share if new competitors come into our market, we will continue to offer

the highest quality with guaranteed satisfaction and run our monthly promotions to gain an even

larger client base. We will also achieve customer loyalty through our exceptional customer

service by taking great care of their loved ones and keep them coming back to us and referring us

to friends and family. Choice Dog Care’s quality level will truly be the reason for its success, so

we will strive to keep an ultra high quality reputation and we will succeed!

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Critical Events & Milestones Graphic (See Appendix A)

Organizational Issus

Name: Choice Dog Care is the chosen name for our company and service. It is an ideal

name for the service we are offering because it is a classy and relatively tame name in

comparison to most of our competition. Instead of having a childish or wacky name we are

tailoring our name to our target market based on a segmentation of quality and not price, we are

not focusing on being cute, or appearing to be anything we are not, we are instead conveying our

choice service and maintaining a prestige through our name not only our service. Choice Dog

Care is easy to remember, conveys a mature management mentality and describes our business

at the same time as conveying the prestige of our service and the quality it offers. This name is

known to be an available corporate name based on a search through the Oregon Secretary of

State’s Corporate Division website and its business name search ("Oregon Secretary of State

Corporation Division").

Organizational Form: Choice Dog Care will be formed as a corporation. This will allow

for a liability protection not offered through any other business form that also allows us easy

expansion out of state. We will maintain the company shares privately and within the initial

investors, to allow for no vote out of the initial investors and maintain a privately run and owned

corporation. “Double Taxation” is one downside of the corporate business form, to avoid any

“double taxation”, all initial investors will maintain positions in the company at a “corporate”

level and be paid a salary that is market competitive; based on responsibilities and skills.

Bonuses will be awarded annually based on only, improved revenue and growth. Any remaining

profits will spent in expansion of the company to new locations, improved services, etc. By

reinvesting any remaining profits we will be able to avoid any “double taxation” by maintaining

expenses at an equal level as revenue. There will be no lost profits through corporate and

personal taxations on the same profits.

Our mission: Serve our community by offering the most exceptional care of their dogs,

through a high level of quality in every aspect of our day care services and stand out as an

industry leader and trend setter for all dog day cares.

General Objectives: Because of the tough economic time people are being careful on

what and how to spend their money. Our company will make them feel like they are not only

safe leaving their dog in our care, but that they are spending their money wisely by doing so. We

will do this by offering quality and environmentally friendly resources to their dogs, we will

offer things that our competitors are not currently offering such as organic treats and foods made

with no wheat, corn, or other grain fillers. The little things we do like this will set us apart from

the competitors and our friendly staff will also help gain customer loyalty.

First Year Objectives:

Within one year of gaining financial support for Choice Dog Care

we would like to spend no more than three months renovating a location, marketing the grand

opening, and hiring any necessary employees. Within nine months of acquiring financial support

we would like to have started building a customer base and see at least a 100% increase in

customers since the opening day. By the end of the first year of business we would like to have

paid all and any debts acquired through financial needs.

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Two to Three Year Objectives: Throughout the second and third year we would like to

continuing building our customer base while continuing to earn enough revenue to expand to a

second location. This location will need to be similar in size and should take no longer than three

months to prepare after acquiring the necessary funding through sales at our first and original

location. We would like to use this time to continue with market research and discover any needs

not being addressed by ourselves and our competitors. By the time our second location opens we

would like to improve any areas of weakness in our services and stay the industry leader in both

locations.

Four Years and Beyond: After opening and maintaining our second location for at least a

period of twelve months, we would like to continue with expanding our services to new areas

and markets that may not be tapped by any competitors. This will mean opening third and fourth

locations, these locations will need to be in the Pacific Northwest, they are not limited to Oregon,

and will preferably be out of state and allow us to start becoming a regional company. When we

have established a successful regional presence in the Pacific Northwest we would like to

advance across the west coast of the United States, and eventually precede throughout the mid-

west regions as well as the east coast regions of the United States becoming a nationally

recognized brand and quality service provider.

Business Management Plan

Organizational Structure & Plan: Choice Dog Care consists of six key positions to run an

effective business. Each position will focus on certain aspects to help keep our business as

productive as possible.

1. Chief Executive Officer (CEO): The CEO of Choice Dog Care will be in charge of

making sure this business is being operated properly as well as legally. The CEO will

need to host routine checkups on all of the employees within the company to not only

offer them guidance if needed but to make sure they are doing their jobs correctly.

Maintaining legally and ethically sound operations will also fall under the scope of

responsibility of the CEO, setting standards and precedence for all other employees.

The CEO will report to the board of directors at any time necessary. Choice Dog

Care’s CEO will be investor Patrick Eghlidi, compensation will begin at an annual

Salary of $36,000 and will increase based on quarterly profits.

2. Chief Marketing Officer (CMO): The CMO will be responsible for informing

customers of Choice Dog Care. Responsibilities will include creating a high level of

prestige in all marketing aspects of the corporation. The main priority of the CMO is

to get customers and maintain a majority market share in high quality dog care

services. The CMO will also be in charge of creating any and all marketing materials

and medias including but not limited to paper, print, video, and radio advertisements.

This includes promotional idea's and services packages, as well as maintaining a

continuing market research program to stay ahead of competitors and address any

needs from customers. The CMO will report to the CEO for all major decisions as

well as consult with the CFO on budgeting and cost based needs for programs and

marketing campaigns. Choice Dog Care’s CMO is investor Melissa Ward,

compensation will begin at an annual Salary of $36,000 and will increase based on

quarterly profits.

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3.

Chief Financial Officer (CFO): The CFO will be in charge of payroll and

bookkeeping. Because this position is not constantly needed, the responsibilities of

the CFO will also be to continue looking for new locations, work to acquire any

necessary funding for expansion, promotion, and capital. For this position the

qualifications are as follows; four plus years of college or work experience in finance

and accounting. The CFO will have an organized system in which all funds coming in

and out of the company will be accounted for in case of an audit. The CEO and CMO

will also rely on The CFO as a consultant in any major decisions made, and their

capital needs. The CFO will also maintain a bi-weekly report of profits and cash

flows to be presented to the CEO and CMO for strategic and tactical based decision

making. Choice Dog Care CFO is investor Jessica Hernandez, compensation will

begin at an annual Salary of $36,000 and will increase based on quarterly profits.

4. Daycare Manager: The daycare manager will be in charge of the other employees as

well as scheduling. We will supply them with 6 weeks of dog training course that

they must attend. They must be friendly and good with both people and dogs. The

manager will hold a key to the daycare, and will be in charge of ordering supplies

when they are low, help out with all of the customers dogs needs, as well as oversee

all other employees. Choice Dog Care’s Daycare Manager is investor Amber

Homeres-Brinkley, compensation will begin at an annual Salary of $36,000 and will

increase based on quarterly profits. Once a second location is open this position will

be filled at original location by Amber Homeres-Brinkley, and at the second location

by Matt Lewis.

5. Assistant Daycare Manager: This position will consist of taking on mangers

responsibilities on managers’ days off. The assistant manager will also hold a key and

will need to work open to close shifts on managers’ days off. The assistant manager

must also help supervise and educate employees about dogs. Qualifications for this

position are as follows; no college education required, but must have graduated high

school, must have at least 2 years of managerial experience, and also attend 6 weeks

of dog training courses. Must be friendly and outgoing, and will be primary

management position spending time with other employees and all pets in daycare

each worked day. Choice Dog Care’s Assistant Manager will be investor Matt Lewis,

compensation will begin at an annual Salary of $36,000 and will increase based on

quarterly profits. Once second location is opened this position will be terminated

replaced by a standard daycare floor employee.

6. Daycare Floor Employee's: Floor employees will be in charge of ensuring each and

every customer’s dog is happy. They must play with the dogs, feed the dogs and

make sure the dogs are really getting their money’s worth. They will also be in charge

of cleaning up after the dogs and maintaining the quality environment and atmosphere

of Choice Dog Care. At start up this position will be covered part time by all

investors and full time by investor Nathan Emmet, compensation will begin at an

annual Salary of $36,000 and will increase based on quarterly profits. Once the

amount of dogs exceeds 60 per day an additional floor employee will be hired for

every 20 additional dogs that attended day care. These employees will be

compensated at a rate of $9.00 an hour for their services with no benefits.

Organization Chart (See Appendix B)

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Corporate Governance Policies & Assurances: Choice Dog Care will be best run in the

form of a corporation, with six initial investors making up the board of directors as well as the

management team of the business. Investors will take on management positions based on skills

and knowledge of positions. There will be a CEO who will have final say in operations and will

be selected by a majority vote from the initial investors. The CEO will not have full power and

final say in all aspects of the company however and at any time can be replaced by a majority

vote from the initial six investors. This will maintain peace between investors and provide each

investor with a since of security knowing that they are not handing over their authority to one

individual. There will be six members on the board and they will fill six main positions in the

company including CEO, CMO, CFO, floor manager, assistant floor manager, and floor

employee.

Key Advisors & Supportive Services: Choice Dog Care will prepare and submit all forms

and legal documents internally. However on an annual schedule an auditing service will be hired

to look through and report on statements of cash flows, revenues, income, and tax returns. We

will also utilize dog trainers throughout the Tri-Met area to teach all floor employees through

standard dog training courses how to interact correctly with dogs of all sizes and breeds. We will

also rely on veterinary hospitals in the event of injury to any dogs in our care. For strategic

advice we will rely on teamwork and ideas generated therein from the initial six investors that

make up the board of directors as well as the management team.

Organizational Responsibility: Choice Dog Care will choose to take part in sponsoring

bi-weekly dog adoption events. Every other Sunday from 6:00AM to 6:00PM which is our

projected least busy day, we will offer a portion of our facility to be used by volunteers and

activists throughout the community to bring dogs from local shelters and foster care and be

paired with a new owner and home. We will provide food, water, and shelter for these dogs and

an environment where more people are likely to come, where they can run outside with a hopeful

companion or just play fetch inside our play room. Some studies have suggested that more

people are deciding not to adopt because they do not want to be in the “depressing” environment

of an animal shelter. By bringing these dogs to the adoptees and offering this experience in a

bright happy place we hope to increase the adoption rate of dogs in the Tri-Met area. The cost

will be minimal, no more than a few pounds of food and water, but the results will be something

that the community can be proud of and appreciate. This is our responsibility to the community

because our community is dogs, and without them we would have no business. So by giving

back to the dogs and helping them we are providing for the base of our success.

Operations:

There will be one main facility used by Choice Dog Care to house both the

day care as well as our “corporate” offices. The facility will have three indoor areas, a main

lobby and entrance that are adjoined to the managerial offices and meeting spaces as well as

employee break and bathrooms. The rest of the facility will be split up one third for all small

dogs, and two thirds for all large dogs. Outside will be a fenced off yard with both cement and

grass play areas with covered and uncovered sections to accommodate the ever changing weather

in Oregon. This area will also be split one third, two thirds for small and large dogs. The fences

will be uniformly ten feet tall so that even the craftiest dogs would have a hard time escaping.

That would be the primary layout of the initial day care facility. All management positions would

conduct the necessary work in the allotted office space. The facility will most likely be a rented

space to keep initial cost down as well as the limited availability to purchase sufficient space in

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the tri-met area. Cost of development would range between $75,000 and $100,000 depending on

available facilities. Most of the cost would be based on installing interior walls to split up offices,

as well as the general day care space for dogs, the second most costly would be in fencing, to

maintain a relatively low cost we will use a metal fence that is secure and still inexpensive. The

cost of development will also include the cost of cameras and installation so that at any time our

customers can log on to our website and see what their dog is doing. It will also include the cost

of play structures and interactive play areas. We will also be providing food, treats, and toys for

all the dogs and an estimated $25,000 initial investment in toys, treats, and food. These will all

be stored in the bad dog kennel spaces where we will be able to house up to ten dogs in

individual kennels until their owners come to get them. Upon arrival, clients are greeted and if it

is a return client, the dog is taken to their own kennel to get adjusted. Once dog is comfortable,

they are taken to their play area. If they are a large breed they are put in with the large dogs, if a

smaller breed then put in with the smaller dogs. This segregation helps keep possible injuries to a

minimum and allows the dogs to feel comfortable while they stay with Choice Dog Care. During

their stay they will receive repeated outdoor play time to increase their daily exercise as weather

permits it. They are provided with high quality dog food for up to two meals while they are with

us. If they have special needs, the owner has the option to leave any special dietary supplements

or special dog food with us to implement for their own individual dog’s needs We also have an

outside play area for nicer weather so the dogs can feel like they are in their own backyards. All

play areas are constantly monitored by staff to ensure the safety of the animals. All customers

will have an ongoing file in our computer database for their dog on any special needs,

personality traits, or notes that our staff feels are important to provide the best care of each

individual animal. Upon arrival, our staff will make sure this file is up to date by asking each

client if there is anything new that we should be aware of with their pet. This information will be

made available for our staff as a point of reference to provide the best care possible for the

clients pet. All dogs must have current vaccinations with proof from a veterinarian, go through

an intake evaluation by a staff member and pass a temperament assessment before attending

daycare. Also all dogs must be spayed or neutered by 6 months of age.

See Appendix G for pricing and cost analysis.

See Appendix I for employee amount and cost analysis.

See Appendix J for facility layout map.

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Market Feasibility & Viability

Service Description: Choice Dog Care provides a beautiful and welcoming, spacious

environment so you can have peace of mind about man’s best friend. We specialize in care for

your dog and your busy lifestyle. We provide the best possible care for your dog when you don’t

have time and are on the go. We provide a wide array of services. Including, but not limited to:

all day daycare, outside exercise for your pet, indoor areas for play and exercise, nutritious filler

free foods and treats, and training reinforcement.

Current Development: We are in the process of securing a location for the business, a

large space with a convenient location on the west side. Just outside of Portland to make it

available to a wide array of people and lifestyles. Projected capital would be about $300,000.00

to start with each business associate putting in equal amounts to get the business up and running.

We would be looking at three months start with losses as we get known in the area, after that we

would enter a period of six months to earn back initial investments. Beyond six months we

would see profits that allow for expansion and raises in wages and salaries for employees.

Target Market & Segmentation: The most important aspect of Choice Dog Care is the

target market and demographic that we are tailoring our business to; working class, excess

income earning, young and middle aged couples and families. This is a broad market that will

always be growing and expanding throughout the state and country. The age group of 25 – 64

years old is the most inclusive demographic that will need our service, this is the age range based

on the average age of a college student (under 25) and the traditional age of a retiree. These are

our target customers for three reasons; first they generally have a disposable income that can

afford the services we offer. Second they are busy working longer than just the old nine to five

job, which means they are gone more and not able to give as much attention to their dogs.

Thirdly they are value based, they do not want to waste their money on cheap services that are

not up to their standards, and they do not mind paying an extra four to ten dollars on a day of dog

care if it has the value and quality we are offering. We would hope to differentiate ourselves

from our competition enough that we can create our own brand new market and have a one

hundred percent market share to start out, we believe that we can offer that new market by

playing off of the weaknesses and strengths of our competitors. We have looked at what is

offered traditionally by our competitors and what services are new and strongly supported by

customers. By taking the best services, and the turning the worst into great services too we hope

to develop a market that has yet to be explored by any competitors we would face in a fight over

current market share (See Appendix’ C & H for market analysis chart & potential market

calculations).

Potential Annual Growth: Trends in the pet industry show that people are spending

money on their pets, last year $41.2 billion in revenues were pulled in across the country in pet

related products and services (Nichole). Although the recession hit America, pet owners seem to

not be affected. They are still going to spend high amounts of income on their pets. Although

they may not spend as much on unnecessary luxury items for their pets, the services offered

through Choice Dog Care are services that they will not be able to justify denying their dogs.

The large amount of money that is being spent, and the fact that we are offering a service that is

for the health and benefit of the customers dog will mean that we can acquire and maintain a

percentage of the population as loyal customers. According to the United States Census Bureau

there has been a 13.2% population increase in the Portland Tri-Met area (Clackamas,

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Multnomah, Washington Counties) over the past 8 years. This shows that there has been a

consistent increase in population and that means a consistent growth of customer base for our

business. Bases on the information gathered there was an average of over 22,000 new residents

in the tri-met area each year ("U.S. Census Bureau"). These new residents along with current

residents will mean that we will always have a growing market to offer our services to.

Differentiation Strategy: Our competitive edge is that there are very few quality based

dog daycare businesses on the west side (See Appendix D for Perceptual Map), and we would

market our business to middle/upper working class clientele. The differences between our

daycare and the daycare of our competitors will be based on quality. This would include but not

be limited to larger daycare facility, indoor and outdoor play areas, interactive and engaging toys

and structures, filler free quality foods and treats. We will not offer extra services such as

grooming and retail sales, instead we will focus on spending time with the dogs while under our

supervision. We will differ from our competitors by taking a new and innovative stance on what

dog day care should be it is not just a place to take a dog so that they are not alone in a house or

apartment all day. A dog day care in our view is a place for a dog to socialize with other dogs,

exercise and play with other dogs, and a place to continue with training through reinforcement of

tricks for treats, and status in the world of humans. These are all services that are offered here

and there from various competitors, but not with the viewpoint that we take, and not in an all

inclusive setting. This is what we believe our customers will want, a day care tailored to the dogs

with price as the last restriction on what is offered. Advertising as the up-scale and prestigious

daycare center that Choice Dog Care is will help let customers know that their dogs will receive

the utmost care and treatment which is not only key to the health of the dog, but the health of the

owner and our company. Focusing on clientele relationships and building friendships with our

customers will allow us to take full advantage of the best marketing strategy known, word of

mouth. This will be our cheapest and most effective form of marketing, and it will be through

our differentiation that we will gain so much talk throughout the community.

Promotion Strategy: Choice Dog Care will use various methods to promote and market

itself to customers and the community. We will begin with marketing through newspapers and

magazines, such as the Oregonian, the Clipper, and the Red Plum. These are widely distributed

medias, the Oregonian is distributed throughout the Tri-Met area and will allow a wide number

of people to be exposed to our quality service. The Clipper and Red Plum magazines are

distributed to specific markets and vary based on location and relevance of businesses and

residence throughout the Washington county area. We will also use flyers handed out at local pet

supply stores and posted throughout the area for people to see. We will work with local business

firms, veterinary clinics, pet supply stores, and animal parks to allow us to market in and around

their properties. We will offer coupons around the time of opening to allow the community to try

our services and benefit from them at a lower than usual price, giving us a larger customer base

to start and allow word of mouth to start throughout the community. We will also offer a

website that will allow customers to learn about our company, mission, and objective in running

our business.

Distribution:

We will maintain a direct distribution channel with our customers. Being a

service provider we will deal with customers on a face to face basis the majority of the time. This

will allow us to have a relationship with our customers that we would not have any other way. A

key focus around this distribution method will be building and maintaining a personal

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relationship, we will take all forms of criticism constructively and immediately to allow for

immediate correction and improvement.

Purchasing Methods: We will have initial purchases that will be based through retailers in

the community, after the initial purchasing we will have very little fixed cost and purchasing.

The main purchasing we will do is on bulk amounts of dog food and treats; we would prefer to

do this with Castor & Pollux Pet Works, a local company based in Clackamas Oregon who

produces food, treats, toys, accessories and cleaners. We would prefer to do most of our

purchasing through Castor & Pollux to help support our local community and potentially build a

relationship that would offer us an extra marketing method through a partnership with Castor &

Pollux. All necessary fixed costs related to purchasing of supplies could be done with this one

partnership allowing for a greater discount on food, toys, treats, cleaners etc. ("Castor & Pollux

Pet Works").

Marketing Implementation Plan

Sales Tactics: Choice Dog Care will offer one service, and only one service; dog daycare. We

will offer this for $35.00 per day for up to 12 hours of dog daycare. We will offer $20.00 half

day daycare pricing (up to 6 hours of daycare), and we will offer promotional packages that

include an extended amount of daycare days for a slightly discounted price. Choice Dog Care

services will implement promotional offers for customers to ensure exceptional service in the

following way(s). First time customers will receive 20% off coupons for their next full day of

day care, along with a promotional 10% discount offer when customers purchase a package

amount of days at one time. Staff members will put up flyers in local pet shops, groomers, and

pet supply stores to reach a broader market. An ad campaign will be established where we will

put a coupon with an advertisement for Choice Dog Care’s grand opening in the Willamette

week newspaper and when brought in they will receive 15% off a dog daycare package or $5.00

off their visit on one full day of daycare. Good for first time customers, after the promotional

purchase, day care goes back to regular price. Monthly specials will be available; will change

depending on what owners decide for that month. If customers prefer a friend and the new client

purchases a package of day care, the customer who referred the new client receives one day free

of dog day care. We will offer day care packages to be bought online from our web site as well

as in the day care center. All sales will be handled inside the day care at the check in counter

where all floor employees will be trained in selling packages vs. day by day prices. By doing this

we will increase the number of guaranteed days a customer will utilize our service and increase

our revenues by a percentage higher than the discount associated with each package.

Services and Warranty Policies:

Packages bought have no expiration and may be used for any

dog in the client’s household for day care. If our customers find that we have not provided

optional care for their pet we have a full refund satisfaction guarantee. The intake evaluation for

each dog is a form with a list of questions about the dog, containing but not limited to: has the

dog ever attacked or bitten anyone, past aggression problems with men or women, any traits or

conditions we should be aware of, past medical history, special needs, contact information of the

owner and an alternative phone contact in case of an emergency and we are unable to reach the

owner. This must signed by the staff member and owner of the dog after (s)he has passed a

positive intake evaluation to assure the safety and well being for staff, owner and other dogs at

the facility. The importance of continual service excellence is very important to Choice Dog

Care, so we implement follow up calls to clients to ensure their experience with us was a

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positive one and sending promotional flyers and discount coupons via email or via regular mail if

they do not have an email account. This ensures that the customer knows we care about them,

want to continue their day care with us and that they’re business is important to us. Warranties

such as the no expiration policy, dog intake evaluation form and a money back guarantee helps

keep damages and losses to a minimum and cut down on liability issues. In order to guarantee

the necessary funds are available for any refund to an unsatisfied customer there is a $50,000

contingency budgeted for each facility that will cover any cost of refund to a customer or

incident that may take place. This contingency will remain available and be replenished up to the

original amount from revenues each time it is accessed.

Ongoing Market Evaluation: We will have comment cards by the check out area so customers

can write down any thoughts, experiences or ideas they have about the day care. This is an

important way to find out how we can better serve our customers and be better able to provide

for their wants and needs. If we have not had a client bring their pet in for over a month we will

send them an email or regular mail with promotional coupons and offers to give them incentive

to use our services again. When a first time client signs up with us, we ask for their email. We

will send online surveys out to all clients’ e-mails in our data base as a way to see how we can

improve our business. This will also keep us up to date on how many clients we have and the

demographic of who our clientele are. We will do continuing research on new pet based

businesses within a 5 mile radius to see and compare ourselves to our competitors. We will

evaluate their services, prices, promotions and see how we can continually improve our own. On

the first Monday of every month there will be a staff meeting. Bi-weekly at the managerial staff

meeting, the managers will go over accounts, finances, scheduling and all upper management

issues that need to be addresses. These meetings will also go over any promotional specials that

will be happening that month and to keep staff up to date on any new information we need them

to know. All information from surveys, comment cards, and market research will be discussed

and evaluated at these meetings to determine any new directions that may need to be taken in

strategy or tactics of the business.



14

International Element

Being dog day care center based in the United States our primary language will be

English. Because we are a day care company that is based inside the United States we do not

have much of an international element, we are not going to be distributing or shipping products

from our business to international locations. Our service will directly benefit all residential and

local citizens. The most complex our international affairs will be when a non-English speaking

customer brings their dog in, for instance a Spanish speaking American citizen may be unable to

communicate with our employees. This would be negative and in fact lose a customer base that

may otherwise be untapped by local competition. So what we as a business can do to help cross

the language barrier is set up a method in which we can understand non English speaking

customers. We will make sure that we have a Spanish dictionary on site because the largest

minority population in the Tri-Met area is of Spanish speaking descent. This dictionary can help

whoever is on site or watching the dogs at this time to interpret and understand what the

employee is being asked. Our main goal is to have all of our staff members have a general

understanding of the Spanish language. The next thing that we will have is important because

there are more than just Spanish speaking citizens. We plan to have a translation device or

program available to all employees based at a check in counter. So if someone who speaks any

language other than English comes in we can have them enter what they are trying to say on the

computer and the computer can translate it to English and vice-versa. This will allow us to be

available to any customer who was interested in utilizing our service no matter what culture or

nationality they come from or the primary language they speak, giving us yet another edge over

our competition setting us apart and allowing us to truly be a better choice in dog day care

service.



15

Financial Plan

Capital Budgeting (See Appendix E): Choice Dog Care will have an initial investment

of $250,000 from its six investors, this along with a $114,180 loan from a public bank will

finance all necessary cost to start the business through the 2

nd

quarter of the first year. Pre-

opening costs during the 1

st

quarter will total $314,180 to pay for marketing, facility

development, operating supplies and all other costs. We will maintain a contingency of $50,000

for any unseen and uninsured events that occur. This will also cover the cost of an annual salary

totaling $36,000 a year for each of the six initial investors.

Operational Cash Flows (See Appendix F): Entering the 2

nd

quarter of the 1

st

year of

operations Choice Dog Care assumes it will maintain a 100% market share in the ultra high

quality dog daycare business and a 0.09% of the total potential customer base in the area (See

Appendix H). By maintaining 55 dogs per day at an average price of $30.00 per day the total

revenues earned during this period will total $148,500.00 and will cover operating expenses of

$136,400.00 leaving a profit of $12,100.00 to be used in payment of the initial loan used to

finance start up. Revenues are based on the assumption that there will be an increase of 10 - 15

dogs per day per quarter until reaching the maximum capacity of 120 dogs. Beginning the 2

nd

quarter of the 1

st

year we will hire our first 2 employees at $9.00 an hour based on a 1:15

employee to dog ratio. By the end of the 1

st

quarter of the 2

nd

year Choice Dog Care will have

paid the entire balance owed on the original bank financing. Allowing for a $5,300.00 increase in

investor salaries per investor and reaching the break-even point for all six investors, each

following quarter all profits will be paid out evenly to each of the six investors through salaries

to avoid any double taxation. During the 4

th

quarter of the 2

nd

year we will finance an additional

$190,000.00 through a public bank, $140,000.00 for development of a second location during the

4

th

quarter and $50,000.00 as contingency for the second location. We will open the second

location during the 1

st

quarter of the 3

rd

year and use the same pricing but we will assume an

increase of 20 - 25 dogs per quarter until reaching full capacity at the second location of 120

dogs. At the point of financing the second location we will determine salaries based on total

revenues minus expenses, minus one third of our outstanding bank debt and maintain salaries at

this level until the $190,000.00 finance is paid in full through profits from the second location

during the 3

rd

quarter of the 3

rd

year of operation. By the 4

th

quarter of the 3

rd

year we will see

maximum capacity met at both the 1

st

and 2

nd

locations and a steady revenue totaling $648,000

per quarter and salaries for the initial six investors at $237,000.00 per year.

Aggregate Funding:

Choice Dog Care will reach financial stability when it has paid all

financial loans and investors have earned back their initial investment of $250,000.00. This will

be met by the end of the 1

st

quarter of the 2

nd

year, when revenues are maintained above

$200,000.00 per quarter. This will require an aggregate spending of over $750,000.00 during a

time frame of 1 year, when this has occurred enough funding has been provided to pay back all

loans and again return through salaries the investors initial investments.

Contingencies and Cash Flow Sensitivities:

Some possible changes in our critical

assumptions might be the number of our potential customers. After doing some research and

calculating our potential market, it was a fairly high number. During these economic times, we

might see a slightly lower number than anticipated, causing us to have lower sales. Budgeting,



16

cash flows and aggregate funding are all based on a simple calculation of the potentially perfect

market consisting of 832 potential dogs to utilize our day care services (See Appendix H). This

means that our projections rely on possessing between 0.09% and 0.4% of this market, leaving a

very low potential of not meeting our projections. However there is always a possibility of

something happening whether it is vandalism on our equipment, or a dissatisfied customer who

needs a refund, so we will maintain a $50,000.00 contingency fund balance for each facility that

is open and will replenish it with revenues each time it is accessed for something. This should

cover any problems that arise and are not covered by our insurance, primarily in the event that

we need to hold a large marketing campaign to gain a large customer base.

Financial Controls & Management Practices: To insure proper financial reporting and

management practices there will be a bi-weekly meeting held with the original six investors and

any additional managers from other facilities (beyond second year). These meetings will insure

that all responsibilities have been met and appropriately handled throughout the previous 14 day

period. This will be in addition to the routine checkups held by the CEO. To further insure

proper financial practices in the 4

th

quarter of each year an outside auditing service will be hired

to review all financial statements and budgeting as well as tax returns to insure proper steps and

actions have been taken and nothing has been missed accidently or intentionally. All managers

will report any necessary information at the bi-weekly meetings including the CEO, CFO, CMO,

and store manager, this information will be discussed and any decisions pertaining will be made

by the original six investors.

Financing Sources & Form

Capital Structure: Choice Dog Care will utilize financing from public banks when

financing is needed to fund the opening of a new location. Staying with a public bank we will not

lose any control of our corporation to terms or conditions set by a venture capitalist or private

bank. The higher interest rates offered through public banks will not be a huge problem based on

the high revenues we will earn any loans taken will be for short periods of time totaling no

longer than 18 months. We will initially invest a total of $250,000 of our own money along with

a bank loan of under $120,000 and will pay this loan back within 18 months. We will maintain a

private company and not offer any preferred or common stock, all ownership will be split evenly

amount the initial 6 investors. Investors will be paid through salary for positions worked. Salary

will be determined by splitting evenly any profits that remain at the end of the quarter, however

if there is any outstanding debt to a public bank it will take priority and salaries will be frozen at

the previous quarters rate until said loan is paid in full.

Long Term Financial Strategy: The long term financial strategy of Choice Dog Care will

be a fairly simple pattern of developing a facility to reach its maximum capacity of customers,

borrow the assumed appropriate amount from a public bank and develop another facility until it

reaches maximum capacity and repeat leading to higher and higher profits as more and more

markets are accessed. Investors will continue to see a return based on quarterly profits and once a

point is reached where profits are equal to the total investment cost to develop a new location we

will by-pass public bank loans altogether are finance internally any development thereafter. By

financing in this way there are very few variables that would prevent us from expanding and we

can maintain the highest possible investor returns to our company owners.



17

Critical Risks, Problems, and Assumptions

The most common risks and problems that can be run into for a business fall under the

following categories listed.

1. Human errors

2. Equipment failures

3. Third-party failures

4. Environmental hazards

5. Fires and other disasters

6. Terrorism and sabotage

Some risks involved are possible scenarios where a dog could attack another dog even

after temperament intake evaluation. This falls under human error, nothing was intentional and

usually these are unforeseeable issues that happen. If the staff didn’t notice an aggression

towards another dog or person and something upset the animal or it was an instance where the

animal was aggravated before it came into the facility there is nothing to do but handle the

situation as it occurs. Having the client sign the intake evaluation form helps for legal reasons,

but if not handled properly with some sort of compensation to the client it could be harmful to

the business just by word of mouth that we handled the situation poorly and their dog was

injured, a staff member was injured or whatever the case may be.

Since our daycare is based on a lot of information that is stored on our computer systems,

a computer crash would be detrimental to our business. This would fall under equipment failure.

A computer crash or having our systems database erased would negatively impact our business

due to it being the main way we keep records of clients and dog information. We would need a

backup of all our information and make sure we have an associate that was knowledgeable in

computer technology to establish a system to keep everything in working order. We would need

to have a contingency plan, such as a backup computer and hard drive that was updated regularly

without information for if something like a hard drive gets wiped out or our computer system

crashes.

Third party failures would be less of an issue at this point in our business; if we had a

shipping issue with delivery of our dog food we could find a local substitute. Along with most of

our products we would need to keep the business running, most everything we need could be

purchased from local distributors with very low probability of this being a problem.

If something were to happen to make the work place a hazardous environment, we would

not be able to have animals in the facility until the issues was cleared up. There is too much

liability to have the business open in this kind of instance. If something like a water pipe burst

and flooded the work space and then improper cleaning of the original damage resulted in mold

spores in the building, this would extend the period of displacement from the building. This kind

of damage would result in a loss of revenue due to the fact that we would have to remain closed

and no dogs could be in daycare until everything was clean and in proper working order again.



18

Making sure we have proper insurance for these kinds of problems would be very important.

Likewise, with fire, flooding, earthquake and other such unforeseeable disasters having full

coverage insurance would be very beneficial in case something like that happened. Having

business interruption insurance to replace revenues lost when the business cannot open for

customers would be good add on to our general insurance.

Terrorism and sabotage would be highly unlikely, although not impossible. If a

competitor or angry customer wanted to they may try and cause harm to staff or the business.

This would lead to contacting law enforcement to try and rectify the situation.



19

Appendix A: Critical Events & Milestones Graphic

Yr. 1 Q1

Establish and incorporate Choice Dog Care.

Find location for first daycare center, have

website up and running. Begin renovation

of center and purchasing of necessary

supplies. Begin marketing in local papers

and magazines and face to face flyer

handouts

Borrow $114,180 from

bank, invest $250k.

Total $364,180 start up

financing.

Yr. 1 Q2 Hold Grand Opening Event. Average 55 dogs a

day. Employ 2 non-

investor employees.

Post revenues over

$100k.

Yr. 1 Q3

Average 65 dogs a

day. Employ 4 non-

investor employees.

Post revenues over

$150k.

Yr. 1 Q4

Market positions for hire in local paper and

job websites.

Average 75 dogs a

day.

Post revenues over

$200k.

Yr. 2 Q1

Average 85 dogs a

day. Employ 6 non-

investor employees.

Pay off bank loan &

increase investor

salaries. Break even on

original investment.

Yr. 2 Q2

Market positions for hire in local paper and

job websites.

Average 100 dogs a

day. Employ 8 non-

investor employees.

Increase investor

salaries. Post revenues

over $250k.

Yr. 2 Q3

Average 110 dogs a

day. Employ 10 non-

investor employees.

Increase investor

salaries.

Yr. 2 Q4

Find location for Second daycare center.

Market positions for hire in local paper and

job websites. Begin renovation of center

and purchasing of necessary supplies

Average 120 dogs a

day.

Borrow $190k from

bank to finance

second location.

Yr. 3 Q1

Hold Grand Opening Event for second

location and market positions for hire in

local paper and job websites.

Average 175 dogs a

day. Employ 16 non-

investor employees.

Post revenues over

$400k.

Yr. 3 Q2

Market positions for hire in local paper and

job websites.

Average 200 dogs a

day. Employ 20 non-

investor employees.

Post revenues over

$500k.

Yr. 3 Q3

Market positions for hire in local paper and

job websites.

Average 220 dogs a

day. Employ 24 non-

investor employees.

Pay off bank loan &

increase investor

salaries. Post revenues

over $550k

Yr. 4 Q4 Average 240 dogs a

day. Employ 26 non-

investor employees.

Increase investor

salaries. Post revenues

over $600k



20

Appendix B: Organization Chart

Year 1 Quarter 1 – Year 2 Quarter 4

Organization Chart

Year 3 Quarter 1 and Beyond

Organization Chart

ElectedfromOriginalInvestors

PatrickEghlidi,JessicaHernandez,

AmberHomeres‐Brinkley,Matt

Lewis,MelissaWard,NathanEmmet

BoardofDirectors(Original

Investors)

CEO:PatrickEghlidi

CFO:Jessica

Hernandez

CMO:Melissa

Ward

DayCare

Manager:Amber

Homeres‐Brinkley

FloorEmployee:

NathanEmmet

FloorEmployees

Uoto5

AssistantDayCare

Manager:Matt

Lewis

ElectedfromOriginalInvestors

PatrickEghlidi,JessicaHernandez,

AmberHomeres‐Brinkley,Matt

Lewis,MelissaWard,NathanEmmet

BoardofDirectors(Original

Investors)

CEO:PatrickEghlidi

CFO:Jessica

Hernandez

CMO:Melissa

Ward

DayCareManager

Location1:Amber

Homeres‐Brinkley

FloorEmployee:

NathanEmmet

FloorEmployees:

Upto6

DayCareManager

Location2:Matt

Lewis

FloorEmployees:

Upto7



21

Appendix C: Product Differentiation Chart

Competitors New

Small Facility Large Facility

Indoor or Outdoor Indoor & Outdoor

No Seperation of Dogs Dogs Will Be Separated based on size

Varying Services Day Care is only service offered

Retail Sales No Retail Sales

Grooming No Grooming

May Provide Walks Guaranteed Outdoor Exercise

May Provide Training Guaranteed Training Reinforcement

May Provide Food Guaranteed 1 Meal a Day

May Provide Treats Guaranteed Treats

No Quality Guarantee Guaranteed Health Locally Produced Filler Free Foods

Services offered by competitors based on information gathered from phone communication and

websites, all websites have been listed in works cited section.



22

Appendix D: Perceptual Map

Here is a perceptual map showing the price versus quality and where each of our competitor’s

falls assuming the price begins at $20.00 a day and ends at a high of $30.00.

1. Choice Dog Care ($30.00 ±5)

2. The Dog House ($26.00)

3. Hug-A-Bubbas ($26.00)

4. Central Bark ($26.00)

5. Fetch ($25.00)

6. Play and Chase ($24.00)

7. Camp Doggie Tails ($24.00)

8. Arf & Bark ($24.00)

9. Virginia Woof ($24.00)

10. Wag the Dog ($23.00)

11. It’s a Dog’s Life ($22.00)

12. Alpha Dog ($22.00)

13. Pet Smart ($22.00)

14. Dogs Dig It ($21.00)

15. Town & Country ($20.00)

16. 4 Paws ($20.00)

17. The Bark Park ($20.00)

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Cash Balance at Be

g

innin

g

of Period

$ - $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000

Cash Flows from Operations

- 12,100 25,780 44,180 32,120 - - 50,000 63,000 63,000 64,000 -

Owner Investment

250,000 - - - - - - - - - - -

Bank Debt

114,180

(12,100) (25,780) (44,180) (32,120)

- - 190,000

(63,000) (63,000) (64,000)

-

Other Debt

- - - - - - - - - - - -

Equity Financing

- - - - - - - - - - - -

TtlS fF d

$ 364 180

$ 50 000

$ 290 000

$ 100 000

CAPITAL BUDGET: SOURCES AND USES OF FUNDING

Sources of Funds

First Year Second Year Third Year

23

Appendix E: Capital Budgeting

Total Sources of Funds

$

364,180

$

50,000

$

50,000

$

50,000

$

50,000

$

50,000

$

50,000

$

290,000

$

100,000

$

100,000

$

100,000

$

100,000

Building/Real Estate

$ 50,000 $0 $0 $0 $0 $0 $0 $50,000 $0 $0 $0 $0

Capital Equipment

25,000 - - - - - - 25,000 - - - -

Administrative Costs

15,000 - - - - - - 15,000 - - - -

Opening Inventory

25,000 - - - - - - 25,000 - - - -

Pre-opening Expenses

25,000 - - - - - - 25,000 - - - -

Owner Distributions

- - - - - - - - - - -

Working Capital Requirement (from Operating Cash

Flow Analysis

124,180 - - - - - - - - - - -

Contingency (State Assumptions and Explanation)

50,000 - - - - - - 50,000 - - - -

Total Uses of Funds for Capital Expenditures

$ 314,180 $ - $ - $ - $ - $ - $ - $ 140,000 $ - $ - $ - $ -

Investments for Operating Activities

- - - - - - - - - - - -

Cash at End of Period

50,000 - - - - - - 100,000 - - - -

Total Uses of Funds for All Purposes

$ 364,180 $ - $ - $ - $ - $ - $ - $ 240,000 $ - $ - $ - $ -

Uses of Funds

23

Appendix E: Capital Budgeting

23

Appendix E: Capital Budgeting

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Cash Balance at Beginning of Period

$ - $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000

+ Revenue earned (Sales)

$ - $ 148,500 $ 175,500 $ 202,500 $ 229,500 $ 270,000 $ 297,000 $ 324,000 $ 472,500 $ 540,000 $ 594,000 $ 648,000

+ Other Income

- - - - - - - - - - - -

- Purchases/Materials

8,250 9,750 11,250 12,750 15,000 16,500 18,000 24,750 27,750 33,000 36,000 36,000

- Salaries

54,000 54,000 54,000 54,000 85,990 147,290 167,970 133,220 169,410 212,220 252,500 355,780

- Floor Employee Wages

- 9,720 19,440 19,440 29,160 38,880 48,600 48,600 87,480 106,920 116,640 126,360

- Rent

45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 90,000 90,000 90,000 90,000

- Utilities

1,000 1,000 1,100 1,200 1,300 1,400 1,500 1,500 3,000 3,000 3,000 3,000

- Telephone

30 30 30 30 30 30 30 30 60 60 60 60

OPERATING CASH FLOW ANALYSIS

Cash Flows from Operating Activities

Description/Period (Month, Quarter or Year)

First Year Second Year Third Year

24

Appendix F

- Advertising and Promotions

5,000 6,000 8,000 10,000 10,000 10,000 5,000 5,000 10,000 10,000 10,000 10,000

- Office Supplies and Expenses

900 900 900 900 900 900 900 900 1,800 1,800 1,800 1,800

- Insurance

10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 20,000 20,000 20,000 20,000

- Legal and Accounting

- - - 5,000 - - - 5,000 - - - 5,000

Subtotal: Cash provided by/(used in) Operating

Activities (Working Capital Requirement)

$ (124,180) $ 12,100 $ 25,780 $ 44,180 $ 32,120 $ - $ - $ 50,000 $ 63,000 $ 63,000 $ 64,000 $ -

+/- Investments in Inventories

$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

+/- Other Resources and Materials

- - - - - - - - - - - -

+/- Capital Uses of Funds from Capital Budget

(Excludes Working Capital Requirement)

(190,000) - - - - - - (190,000) - - -

Subtotal: Cash provided by/(used in) Investment

Activities

$ (190,000) $ - $ - $ - $ - $ - $ - $ (190,000) $ - $ - $ - $ -

+/- Owner Investments/Distributions 250,000$ -$

+/- Proceeds from Loans/Payments on Loans

114,180 (12,100) (25,780) (44,180) (32,120) - - 190,000 (63,000) (63,000) (64,000) -

+/- Proceeds from Common Stock Sales/Repurchases

- - - - - - - - - - - -

Subtotal: Cash provided by/(used in) Financing

Activities

$ 364,180 $ (12,100) $ (25,780) $ (44,180) $ (32,120) $ - $ - $ 190,000 $ (63,000) $ (63,000) $ (64,000) $ -

Total Cash Flows (Outflows) during Period

50,000 - - - - - - 50,000 - - - -

Cash Balance at End of Period

$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000

Cash Flows from Investment Activities

Cash Flows from Financing Activities

24

Appendix F

24

Appendix F



25

Appendix G: Pricing and Cost Analysis

Customer Pricing:

- $35.00 per full day (up to 12 hrs.) of dog day care per dog.

- $20.00 per half day (up to 6 hrs.) of dog day care per dog.

- $210.00 per 7 full day week per dog.

- $140.00 per 7 have day week per dog.

Included in pricing:

o Indoor play time & exercise.

o Outdoor play time & exercise.

o Training reinforcement (for treats!).

o 2 full meals (1 for half day).

o Water always available.

To determine total revenues:

55 * $30.00 = $1,650.00

Average number of dogs per

day 1

st

Year 2

nd

Quarter.

Average price of day care based on

discounts and regular pricing.

Revenue earned in one day

during 1

st

Year 2

nd

Quarter.

$1,650.00 * 90 = $148,500

Revenue earned in one day

during 1

st

Year 2

nd

Quarter.

Estimated days in

average Quarter

Estimated total revenues earned

1

st

Year 2

nd

Quarter.

Pricing based on estimated cost per dog per month.

Food & treats are estimated to cost $50.00 per dog per month.

55 * $50.00 = $2750.00

Average number of dogs per

day 1

st

Year 2

nd

Quarter.

Estimated cost of food and treats

per dog per month.

Estimated monthly cost of food

and treats during 1

st

Year 2

nd

Quarter.

$2750.00 * 3 = $8250.00

Estimated monthly cost of

food and treats during 1

st

Year

2

nd

Quarter.

Number of months in a Quarter. Total estimated cost of food and

treats for 1

st

Year 2

nd

Quarter.

All food and treats will be purchased during the prior quarter based on estimated average daily

number of dogs.



26

Appendix H: Potential Market Calculation

Total Dog Population Size for Portland Tri-Met area:

557,706 / 2.67 = 208,879

Population of Portland as

of July 2008.

National average for

individuals per

household.

Households in Portland

area as of July 2008.

208,879 * 0.372 = 77,703

Households in Portland

area as of July 2008.

Estimated percentage of

dog owning households

in the U.S.

Estimated dog owning

households in Portland as

of July 2008.

77,703 * 1.6 = 124,325

Estimated dog owning

households in Portland as

of July 2008.

National average

number of dogs per

household.

Estimated number of dogs

in the Portland area as of

July 2008.

Estimated Market Size in Portland Tri-Met area:

77,703 * 0.815 = 63,328

Estimated dog owning

households in Portland as

of July 2008.

Estimated average

percentage living above

poverty line.

Estimated households

living above poverty line.

63,328 * 0.755 = 47,813

Estimated households

living above poverty line.

Estimated percentage of

household without

children.

Estimated households

above poverty line living

without children.

47,813 * 0.781 = 37,342

Estimated households

above poverty line living

without children.

Estimated percentage of

households not in the

age range of 18 – 24 or

65+

Estimated households

above poverty line, ages

25-64 and living without

children

37,342 * 1.6 = 59,747

Estimated households

above poverty line, ages

25-64 and living without

children

National average dogs

per household.

Total Estimated Potential

Market Size

Source: (Dog Daycare Demographics)



27

Appendix I: Employee Amount and Cost Analysis

Cost Calculation per Quarter for Employees:

110 / 15 = 7 1/3

Estimated average daily

amount of dogs during 2

nd

Year 3

rd

Quarter.

Number of dogs under

supervision of one

employee.

Total number of employees

needed to safely supervise

estimated amount of dogs.

8 - 3 = 5

Total number of employees

needed to safely supervise

estimated amount of dogs.

Number of investors

working daycare facility

floor positions.

Number of employees

needed at any given time.

5 * 12 = 60

Number of employees

needed at any given time.

Number of hours per day

of operations.

Total number of hours to be

paid based on amount of

needed employees.

60 * $9.00 = $540.00

Total number of hours to

be paid based on amount of

needed employees.

Rate of pay per hour per

employee.

Total amount of funds to be

paid per day per estimated

amount of employees.

$540.00 * 90 = $48,600.00

Total amount of funds to be

paid per day per estimated

amount of employees.

Estimated amount of days

per Quarter.

Total estimated cost of

employees during Quarter.

Actual Amount of Employees Calculation:

165 / 15 = 11

Estimated average daily

number of dogs 3

rd

Year 1

st

Quarter.

Number of dogs under

supervision of one

employee.

Total number of employees

needed to safely supervise

estimated amount of dogs.

11 - 3 = 8

Total number of employees

needed to safely supervise

estimated amount of dogs.

Number of investors

working daycare facility

floor positions.

Number of employees

needed at any given time.

8 * 2 = 16

Number of employees

needed at any given time.

To ensure there is always

the estimated number of

employees needed at any

given time.

Total estimated number of

employees to insure that

there is always at least 1

employee per 15 dogs.



28

Appendix K: Facility Layout



29

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30

Works Cited Continued

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