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1.0 Executive Summary
Dog Groomer and Kennel, LLC (“the Company”) will provide the Boston, Massachusetts general public with comprehensive pet care and grooming solutions from the business’ campus. At this time, Management is seeking $1.25 million for the development of these operations. The Company’s Founder is Michael Logan. The business will generate highly predictable revenues from the overnight stays as well as dog day care.
1.1 The Services
The primary revenue center will come from the ongoing dog day care services offered. The business will have the ability to provide care for up to 40 dogs at any given time. The business will charge $30 per day for these services. In addition to daytime care, the Company will offer a full suite of boarding services. These services will be priced at $100 per day. Each dog will be given their own suite, and video technology will be installed so that dog owners can monitor their pet while they are at the facility.
In addition to these services, Dog Groomer and Kennel, LLC will provide a full suite of grooming services. The business, at the onset of operations, will employ two staff dog groomers.
Chapter three of this document will further discuss the operations of the business.
1.2 Financing
Management is currently seeking $1.25 million in order to establish the operations of the business in Boston. The terms of this loan are to be determined, but this document assumes that the Company will receive a 20-year loan carrying a 7.5% interest rate. The funds will be primarily used for:
• Land and real estate development
• Pet care equipment
• General FF&E
• Working capital
As time progresses, Dog Groomer and Kennel, LLC would be a strong candidate for expansion financing given the highly predictable streams of revenue produced from daily dog care services as well as overnight pet stays. This document assumes that the Company will finance its growth with the retained earnings of the business.
1.3 Mission Statement
Dog Groomer and Kennel seeks to provide an outstanding level of care that treats all dogs with an immense degree of compassion while fostering a positive environment for pets.
1.4 Management Team
Dog Groomer and Kennel was founded and is owned by Michael Logan. He has more than 15 years of experience as a professional dog trainer. The Founder will be able to quickly bring the operations of the business to profitability.
1.5 Sales Forecasts
1.6 Expansion Plan
Management anticipates that the business will quickly achieve 100% capacity given the wealth and population density of the Boston market. After the third year of operations, the Company may establish additional locations no less than 10 miles from the Company’s initial location. The Company may also acquire existing pet care businesses that can be integrated into the business’ ecosystem.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Dog Groomer and Kennel, LLC. The business is a limited liability company registered in the State of Massachusetts.
2.2 Required Funds
Management is seeking $1.25 million in order to develop the dog care and grooming facilities. The funds will be used as follows:
2.3 Management and Investor Equity
Michael Logan will continue to retain a 100% ownership interest in the business. An investment from a third party equity source is not needed at this time.
2.4 Exit Strategy
In the event that Michael Logan wishes to retire or relocate, a qualified business brokerage would be hired to mange the sale of Dog Groomer and Kennel to a third party. Including real estate, the business could receive a price equal to eight times the Company’s pre-tax income. The Founder has no intention of divesting the business for a substantial period of time.
3.0 Operations
As stated in the executive summary, Dog Groomer and Kennel will be actively engaged with providing an immense degree of ongoing care to pet owners throughout the greater Boston market area. The business’ state-of-the-art campus will feature numerous installations that will be mentally stimulating for dogs that are cared for during the course of the day. The business will provide these services Monday through Friday. The Company’s overnight care operations will be available seven days per week.
The Company’s dog grooming operations will provide highly predictable streams of revenue on a daily basis as well. The business’ staff groomers will work seven days per week. To a more modest extent, the business will generate income from the sale of pet care products.
It should be noted that all dogs care for at the facilities will be required to have up to date vaccinations. The business, on a retainer basis, will have a veterinarian on call in the event of an emergency. This will be a major competitive advantage for the business.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
At this time, the economy is doing very well. Despite moderately high interest rates and inflation – unemployment continues to remain very low. It is expected that interest rates will continue to decline given the proper fiscal policy implemented by the Federal Reserve.
It should be noted that any negative changes in the economy will not impact the Company’s ability to remain profitable and cash flow positive. The demand among pet owners in the Boston market area to have their animals cared for is immense. The substantial gross margins and controllable operating costs of the business will further contribute to the economic stability of Dog Groomer and Kennel.
4.2 Industry Analysis
There are 125,000 dog grooming and kennel facilities on a nationwide basis. In each of the last five years, the industry has generated revenues in excess of $10 billion. The industry employs 240,000 people.
This industry’s growth is expected to remain strong. People from the Millennial Generation and Generation Z are adopting dogs at record numbers. The pandemic caused a massive uptick in the number of people that own dogs. As people are more career focused in their early years, it is expected that the growth of the pet care services industry will exceed the rate of general economic growth.
4.3 Customer Profile
Any person that owns a dog is a potential customer of Dog Groomer and Kennel, LLC. Pet ownership is ubiquitous. Management will use the following profile when marketing the Company’s services to the general public:
• Works or lives within 10 miles of the facility
• Annual household income exceeding $75,000
• Will spend $150 per week on care for their pet
Management has specifically chosen the Boston market given its wealth and population density. In this section, you can further hone in on why you are developing your dog grooming and kennel facilities in your specific market. You can further discuss matters pertaining to household income, number of pets owned, median home value, and other attributes that can influence the success of your location.
4.4 Competition
Given the highly predictable revenues of pet care businesses, the Company will face ongoing competition from similar providers in the Boston market. Most importantly, the Company will differentiate itself by offering both care and grooming onsite. The business will also provide live video streams so that pet owners can have reduced anxiety when leaving their dog at the facility for overnight and day stays. Here, you can further discuss the reasons why your facilities will maintain a competitive advantage over other businesses.
5.0 Marketing Plan
In order to reach maximum capacity quickly, the Company will use a number of marketing strategies that will promote ongoing enrollment in the Company’s day and overnight care programs. The business, as more people use the facilities to care for their dogs, is expected to generate substantial word of mouth referrals.
5.1 Marketing Objectives
• Maintain an expansive online presence that showcases the state-of-the-art dog care, overnight care, and grooming operations.
• Develop referral relationships with veterinarians in the Boston market.
• Distribute mailed advertisements and other forms of print advertising in order to create immediate awareness.
5.2 Marketing Strategies
The Company’s website will be search engine optimized specifically for the Boston market area. The platform will feature content-rich images of the location, video walkthroughs, interviews with staff, and other videos that showcase both the care and grooming operations. The platform will have a video live stream so that pet owners can see the goings on of the facility on a daily basis. Access to this live stream will require login.
In addition to the Company’s website, the business will maintain profiles on all major social media platforms. On a regular basis, discounts for dog grooming will be offered. This will not only drive additional revenue, but it will further familiarize people with the care operations of the business. The Company will continue to post content that discusses dog care and related pet topics.
At the onset of operations, Management will acquire a regional mailing list that contains the names and addresses of people that own dogs in the Boston market area. The Company will distribute brochures that will contain discounts for both care and grooming services.
The Company will also foster ongoing referral relationships with veterinarians and real estate agents. Among veterinarians, the business will focus on receiving referrals specific for overnight care operations. Real estate agents will provide referrals to people that have recently moved to the area and are seeking qualified pet care services.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Payroll
7.0 Financial Plan
7.1 Underlying Assumptions
• Dog Groomer and Kennel, LLC will acquire a $1.25 million loan to develop its facilities.
• The loan will carry a 20-year term and a 7.5% interest rate.
• Management will provide a $250,000 infusion as the down payment.
7.2 Sensitivity Analysis
As has been one of the themes throughout this business plan, the demand for pet care services tends to remain incredibly strong even during times of economic recession. People are going to continue to need grooming, day care, and overnight care for their dogs. The business will generate substantial gross margins that will seamlessly cover all anticipated financial obligations.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
