BUSINESS PLAN ON
PAWS PET SHOP
BUSINESS PLAN ASSOCIATES
ASHWINI KUMARI DAYANAND
RANJITH SHETTY MANOJ SHETTY
SHARATH KUMAR VARSHA MALLI
UNDER THE GUIDANCE OF
MR. RUCHIRANAND
PROFESSOR
Submitted to the department of MBA, AIET, Mijar.
2010
ACKNOWLEDGEMENT
A successful and satisfactory implementation of any significant task is the outcome of
invaluable contribution of different people. It gives us immense pleasure to acknowledge the
assistance and help we received in developing this business plan and report the same.
On the onset, we would like to thank our guide, Ruchiranand, professor, department of MBA
for his encouragement, motivation and expert advice given throughout the course period. We
won’t be having enough words to prove the unconditional help that was showered on us by
him.
We humbly thank K.U.Nayak, professor and dean, department of MBA for his constant
involvement and moral support during the course of business plan.
It is through our heartfelt gratitude to thank Dr. Updhya, veterinary doctor, for his
unconditional help.
We are very thankful to Waterz, Pets-N-Ponds and Pet Hut for their co-operation and support
in our business plan.
TABLE OF CONTENTS
INTRODUCTION
There has never been a better time to start a pet care business. These days, people with pets
tend to look at their beloved animals as members of the family-a big difference from the old
days when dogs and cats were usually only kept around if they were useful. Pet businesses
are a great way to be your own boss, spend your time with the animals you love, and make
some money along the way.
More and more people each year are leaving their jobs in the corporate or professional worlds
and choosing to open their own businesses. There's nothing like working for yourself: Being
your own boss comes with tremendous benefits and rewards, as well as increased
responsibility. One of the most popular fields in which to open up a new business is the ever-
diversifying pet care trade.
The first requirement is a love for animals. People want to know that their animal is in good
hands while they're at work or away, and having an obvious love for animals is the best way
to make sure everything runs smoothly. A love for animals isn't enough, however. You'll also
need to have a good business sense and entrepreneurial spirit to get your pet sitting business
running smoothly. Pet care operations run the gamut in size from small businesses with two
employees that handle a few dogs a day, to large operations with five to six employees that
handle as many as 20 to 40 dogs a day.
BACKGROUND
We're living in an age where people treat their pets with more love and care than ever before.
Pet care businesses are by far one of the rapid growth areas in the pet care industry. The
reasons for this are many, but most important being the changing clientele. More and more
families and single people who are living without children in the house turn to a dog to be
their special loved one. And they want to treat this four-legged member of the family as well
as possible.
This is where we come in. Opening a pet shop in the neighborhood gives the dog owners a
safe, fun place to leave their dogs when they are away. Doggie day cares and kennels can be
more lucrative. Pet grooming has long been a way for pet owners to lavish love, affection and
money on their beloved pets. Pet clinics help to provide high standards of healthcare for the
pets.
The main reason behind starting this business is that it is a profitable business and most
importantly because of our passion for animals. We feel the need for animals to be treated
with lot of love, care and affection. We are very happy to help pet owners to do the same.
ABOUT OUR COMPANY
Legal name: Paws Pet Shop
Names of top management: Ashwini Kumari, Dayanand, Ranjith Shetty, Manoj Shetty,
Sharath Kumar, Varsha Malli.
Location of business: Nanthoor
Mission
Our Mission is to provide the education and loving support to our customers so that they will
have the knowledge to care for and enjoy their pets.
Vision
To provide holistic care for pets.
We love animals ...
At paws Pet Shop, we offer our customers a store that is well stocked with healthy and happy
animals - plus everything you'll need to keep them that way.
We specialize in hand feeding a wide variety of birds. This includes parrots, love birds,
doves, Finches and several others. We take pride in raising well-adjusted, socialized birds
that will make a welcome addition to any family. For the birds well being and safety we
gladly offer nail and wing clipping as needed, as well as tips and advice from the bird
experts on our staff. We also have varieties of fish, rabbits and turtles to choose from. People
interested in buying a dog or a puppy could place their orders with us and we could deliver
their pets in no time.
We provide an extensive assortment of organic, natural and holistic foods for birds, dogs, and
cats. You will find in our store a vast array of cages, bedding, toys, leashes, collars,
grooming supplies, and many other accessories. As an additional service, we added our
boarding facility to accommodate our customers while away.
Most importantly, here at paws Pet Shop, we offer you personalized service provided by our
highly knowledgeable staff members who are always ready to answer your questions and
assist you in any way.
At paws Pet Shop, our job is to help you, our customer, keep your pets happy and healthy.
We know how much you love your pets because we love our too. Our staff is committed to
continually learning more about pet care, products and nutrition. We promise we will always
do our best for you and the animals you love.
Services offered at paws:
Doggie Day Care and boarding facilities
When most people think about temporary homes for dogs, they think of shelters and
kennels--neither of which sounds very nice. This Doggie day care, on the other hand, takes
care of dogs when their owners are not around. Doggie day care is a day facility. It’s
basically just babysitting the dogs while the owners are at work. It is very Much like a day
care center that parents take their kids to. Doggie day care facilities enable pet owners to
leave their dog in good hands while they're at work.
Service includes: providing separate kennels, meals- twice a day, walking the dog, etc
Pet Grooming:
Pet grooming has long been a way for pet owners to lavish love, affection and money on
their beloved pets. We provide Traditional storefront grooming operation. This helps us
handle more dogs each day. We have well trained employees who possess the required skills.
As the pet grooming changes each year we quickly adapt to the new grooming products and
technologies that hit the market.
Grooming services (pet parlor):
1. Pet hygiene: nail, ear, stomach, pad and rectum.
2. D-mating: untangling of knotted hair.
3. Show grooming: bath and pet hygiene and intensive hair styling.
4. Coloring/streaking: only natural food colors.
5. Massage: aroma therapy, herbal ayurvedic massage.
6. Body clip: complete body haircut.
Pet clinic:
All of us at paws have lived our lives with pets. We know that each is an individual with his
or her own personality and a member of the family. We want the best standards of health care
for our own pets and we aim to provide that same standard for our patients. We offer the
quality care, which the pets deserve, in all aspects of Veterinary Medicine, with particular
emphasis on prevention of disease.
Our highly qualified staff provide ( 24 hours, a day / 7 days, a week) a unique & competent
diagnostic support and assistance for your animals whilst our modern computer facilities
keeping track of the pet's medical history. Our pet clinic is managed by Qualified and
Experience Veterinary Professional.
clinical services:
1. Treatment: rashes, skin disease, ticks, etc
2. Vaccination: anti rabies, distemper vaccines, etc.
3. Routine check-ups: liver function, ear infection, limbs etc
4. Superficial wounds: bites, tearing of skin, etc
5. General ailments: food poisoning, indigestion, lose motion, etc
pet store:
We have a fully stocked pet store at paws. It includes veterinary drugs, pet foods, pet needs, a
to z requirements of pets, shampoo etc. We also sell Dog Accessories Like (Pets Cloths, Pet
Toys, Pets collars, Pets Treats, pets Harness or more).
Products available at the pet store:
Medicines include:
1. Wokazole- body lotion
2. Srectrazole- cream for rashes
3. Freesia powder- for rashes
4. Vitamin supplements and calcium
5. B-complex
6. Seledfuff- shampoo
Other products include:
1. Leash
2. Food bowls
3. Toys
4. Accessories
5. Couch
6. Pedigree
7. cookies
Pet shop:
At paws pet shop you will find...
• Friendly, knowledgeable staff
• A clean, bright well-stocked store
• Lots of great varieties for birds, cats, and more
• Wide selection of healthy birds and rabbits
• Aquariums of various sizes.
• Competitive prices
• A convenient location and working hours.
Varieties of birds: love birds, doves, parrots etc.
Variety of dogs include: Labrador, pugs, terriers, german shephards, etc.
Variety of fish: guppy, gold fish, molly, sword tail, angel fish, etc.
Market analysis
Target market
Here our target market will be higher income people and also upper middle class.
Higher income people will have affordability for their pets and also they can buy pets with
higher price. We have chosen the location for our pet shop as Nanthoor, Mangalore. The
location is convenient and is well connected.
Customers buy pets depending on their lifestyle and psychographics. For example a
person with high income, with luxurious lifestyle would want to own a premium breed of
pet.likewise different people have different mindsets. Some people would like to have pets to
share their feelings and to get relieved from their stress. Some others may want to have pets
like dogs to guard their homes.
Purchasing pattern of customers differ from one another. Different people may want to have
different breeds of dogs which best suit their requirements. Some would like to have other
pets like Cats, Rabbits, birds etc.
Consumers are very sensitive about buying products. The same reflects in buying pets
as well. So while buying a pet, they consider each and every point or aspect. They also make
a study on the other breeds available. Finally they take a decision on the kind of pet they
would want to own.
Size of the market will help us analyze the market potential. Here the size of our
market is small, as we are concentrating mostly on the upper middle and higher income
residents of Mangalore. Extensive promotional activities will help us reach our target market.
Youngsters can be targeted through advertisements on social networking sites. We also target
our potential customers through our blogs. Trends of the market help us formulate our future
strategy. It gives us the different requirements of the customers and their demands.
The Competition
To compete with others in the first place we need to know where we stand. It is
required for us to have sufficient amount of funds which we do. Based on our requirement we
have good amount of workforce as well. We have worked out our strategies and know clearly
where we fit in the market.
We take into account the number of pets sold at our pet shop and also the different services
offered which are new and available only at paws giving us an edge over our competitors.
Our information on pets is genuine and reliable. We believe in maintain high standards of
quality in our services. Our main profits are from the excellent services that we provide.
Barriers to entry in this case can be to get license from government, the cost of
operation and cost of land. But since we already have our ancestral property which we are
taking on lease for a minimal rent our investment on land is taken care of.
We have also considered our future demands and are working towards meeting them.
Since this business is considered to profitable and promises a fairly good return on
investment, we can expect new entrants who could be our competitors in the future. But at
that point in time we will have the benefits of already existing in the business and would have
developed a good clientele base. If we are well established by then which we are very
confident of, we can enjoy the first mover advantage.
Strategic position
Our Company’s strengths are efficient and skilled workforce, sufficient amounts of
networking capital which can be well utilized, good return on investment, new and better
services, and good strategies to run the business.
We look forward to expand our business by providing different kinds of services to
pets apart from the ones already existing, also ensure Supply of different kinds of food
products for pets under our belt. We Also wish to look for other locations where there is good
demand for pet services and where competitors are nonexistent.
We constantly monitor our business growth in terms of the increasing clientele and
the revenues we generate. We also make sure we are in line with the objectives, mission and
vision of the company.
Market plan and sales strategy
Our company’s message matches with our overall business and is of such nature that
it can position our services in the minds of the customer.
Finding clients can be the hardest part of starting up a pet care business, but with a little
legwork we can establish a clientele rather easily.
We are not concentrating on conceptual marketing as it’s very expensive. We plan to start off
with a big bang conducting dog shows and creating awareness among people. We also wish
to meet with veterinary doctors and request them to convey to their clients about our services.
This word of mouth will help us gain clients as most have faith in their doctor’s
recommendations. We also encourage feedback from our customers so we are aware of our
performance and also know what we need to improvise on.
our Marketing tactics include:
• Press releases.
• Online press release.
• Social networking.
• Getting media coverage.
• Keeping in touch with our customers and potential customers.
• blogging to increase our client retention
• Getting into local pet community.
• Advertising at Local events, dog shows etc.
• Communicating and keeping our clients interested.
• Placing fliers in local hot spots. Many stores and parks offer bulletin boards where we
advertise our services.
• Providing services in form of packages at a discounted rate.
• Encourage word-of-mouth advertising.
Social responsibility:
• We seek the joy of donating a small portion of our profits every year to PREM
CHAAYA, which believes in giving a new life to abandoned and rescued animals.
• We also sponsor dog charity shows.
( In
Rupe
es)
201
Revenue Items 1 2012 2013 2014 2015 2016 2017 2018 2019 2020
Pet Sales
60,2 1,46, 2,26, 3,37, 3,70, 4,07, 4,48, 4,93, 5,42, 5,97,3
Dogs 00 190 095 150 870 956 762 632 996 00
32,0 1,05, 1,54, 2,34, 2,57, 2,83, 3,11, 3,42, 3,77, 4,15,0
Cats 00 600 880 256 686 459 806 991 289 19
Total Pet (Dog+Cat) 92,2 2,51, 3,80, 5,71, 6,28, 6,91, 7,60, 8,36, 9,20, 10,12,
Sales (A) 00 790 975 406 556 415 568 623 285 319
5,20 7,98 11,4 15,2 16,0 16,8 18,2 19,1 20,0 21,71
Rabbits 0 0 66 79 38 47 24 42 94 8
35,2 37,4 39,2 41,7 44,3 46,5 49,7 52,8 55,3 58,78
Fish 60 64 98 43 30 02 94 21 66 0
31,0 49,8 70,5 93,7 1,00, 1,06, 1,12, 1,20, 1,27, 1,35,0
Birds 00 75 28 98 928 546 560 384 108 24
Total other Pet Sales 71,4 95,3 1,21, 1,50, 1,61, 1,69, 1,80, 1,92, 2,02, 2,15,5
(B) 60 19 292 820 296 895 578 347 568 22
10,2 11,2
Total Pet Sales (A) + 1,63 3,47, 5,02, 7,22, 7,89, 8,61, 9,41, 8,97 2,85 12,27,
(B) ,660 109 267 226 852 310 146 0 3 841
Product Sales
(Pet Store)
25,7 27,1 28,5 29,9 31,8 34,2 36,0 37,9 39,9 42,18
Fish Food Sales 95 11 57 69 06 46 75 02 41 6
46,0 48,3 55,1 57,8 65,6 68,9 72,3 90,0 94,5 99,29
Aquarium Sales 00 00 25 83 43 25 69 58 60 2
81,2 1,29, 1,83, 2,42, 2,58, 2,74, 2,90, 3,07, 3,27, 3,47,8
Medicines sales 10 524 195 858 293 324 660 561 316 76
10,3 11,5 12,8
2,19 3,66, 5,44, 7,55, 8,40, 9,35, 7,72 4,74 3,16 14,26,
Other products Sales ,230 932 475 686 375 290 3 8 5 907
10,8 11,9 13,1 14,3 15,9 17,4
Total Pet Store 3,72 5,71, 8,11, 6,39 6,11 2,78 6,82 0,26 4,98 19,16,
Sales ,235 867 352 6 7 5 7 9 2 261
Services
1,32 1,98, 2,68, 3,56, 3,59, 3,62, 3,86, 3,89, 3,92, 3,98,9
Pet Clinic Revenues ,150 475 125 613 766 525 402 714 888 56
78,7 1,20, 1,62, 2,14, 2,17, 2,19, 2,33, 2,35, 2,38, 2,40,4
Pet Parlour Services 75 400 400 611 106 916 419 433 054 54
15,0 22,8 31,2 39,0 39,6 40,2 40,2 40,8 41,4 42,00
Boarding Servces 00 00 00 00 00 00 00 00 00 0
Total services 2,25 3,41, 4,61, 6,10, 6,16, 6,22, 6,60, 6,65, 6,72, 6,81,4
revenue ,925 675 725 224 472 641 021 947 342 10
7,6 12,6 17,7 24,1 26,0 27,9 30,3 32,8 35,4
1,8 0,65 5,34 8,84 2,44 6,73 7,99 5,18 0,17 38,25
Total Revenue 20 1 4 6 1 6 4 6 7 ,512
Expenditure Items
1,06 2,31, 3,36, 4,87, 5,33, 5,83, 6,38, 6,99, 7,64, 8,37,7
Cost of Pets Sold ,060 644 931 227 632 327 761 245 785 13
Cost of Aquariums 37,5 39,3 44,6 46,8 52,8 55,5 58,2 73,1 76,8 80,67
Sources of Funds
Construction Period Year 1 Year 2 Year 3 Year 4 Year 5
Owner's Capital 4,50,000
Term Loan From bank 4,00,000
-
Profit before Tax with Interest Added Back 2,79,369 -71,884 82,137 2,94,763 3,17,668
Depreciation 111000 68850 49073 38607 32181
Amortization Expenses 2,500 2,500 2,500 2,500 2,500
-
Total A 8,50,000 1,65,869 -534 1,33,710 3,35,870 3,52,349
Disposition of Funds
Capital Expenditure for the Project 5,65,000
Decrease in long term loan 50000 50000 50000
Interest on Long term Loans 60000 60000 60000 52500 45000
Taxation 0 0 6774 74133 83436
Total (B) 5,65,000 60,000 60,000 1,16,774 1,76,633 1,78,436
Opening Balance of cash in hand and at
bank 0 2,85,000 59,131 -1,403 15,532 1,74,769
-
Net Surplus/Deficit (A-B) 2,85,000 2,25,869 -60,534 16,936 1,59,237 1,73,913
Closing Balance of cash at hand and at
bank 2,85,000 59,131 -1,403 15,532 1,74,769 3,48,682
Category % of Number of Population Number of
Population Persons per Households
households
SEC A 14.00% 4.51 84020 18630
SEC B 15.00% 5.02 90021 17932
SEC C 13.00% 4.77 78018 16356
SEC D 12.00% 4.1 72017 17565
SEC E 13.00% 4.04 78018 19311
Total 402094 89794
$3,60,349
Co C1 C2 C3 C4 C5 C6 C7 C
-
1,65,86 3,52,34 3,66,78 4,09,47 4,1
-5,65,000 9 -534 1,33,710 3,35,870 9 4 4
$1,32,091
($19,705)
IRR/Discount
Rate NPV
10% $7,08,719.33
11% $6,26,488.28
12% $5,51,134.14
13% $4,82,027.32
24% 14% $4,18,601.94
15% $3,60,348.85
16% $3,06,809.34
17% $2,57,569.71
18% $2,12,256.43
19% $1,70,531.88
20% $1,32,090.54
21% $96,655.66
22% $63,976.30
23% $33,824.67
24% $5,993.79
24.23% ($0.00)
25% ($19,704.57)
26% ($43,441.79)
27% ($65,374.02)
27% ($65,584.72)
27% ($66,005.62)
27% ($66,110.74)
27% ($66,131.76)
27% ($66,121.25)
27% ($66,123.36)
27% ($66,125.46)
27% ($66,127.56)
27% ($66,129.66)
27% ($66,131.76)
27% ($66,133.87)
27% ($66,138.07)
27% ($66,139.12)
27% ($66,139.25)
27% ($66,142.27)
27% ($66,140.17)
27% ($66,152.78)
27% ($66,215.82)
27% ($70,178.36)
28% ($75,708.28)
28% ($85,643.71)
29% ($1,04,380.90)
30% ($1,21,704.41)
31% ($1,37,722.91)
32% ($1,52,535.86)
