Professional Documents
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Confidentiality Statement
The undersigned reader acknowledges that the information provided by FETCH101 in this business plan is unique to this enterprise and is confidential; therefore, the reader agrees not to disclose any information contained herein or in verbal discussions without the express written permission of by FETCH101, or its principals. It is acknowledged by the reader that information to be furnished in this business plan is in all respects confidential in nature, other than the information that is in the public domain, and that any disclosure or use by the reader may cause serious harm or damage to by FETCH101, or its entities. Upon request, this document is to be immediately returned to FETCH101, _____________________________________ Signature _____________________________________ Name (typed or printed) _____________________________________ Date
This is the business plan of FETCH101. The presentation of this business plan does not imply an offering of securities.
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Table of Contents
1.0 EXECUTIVE SUMMARY Introduction Location Objectives Growing Market Management Competitive Landscape Factors to Success Revenue Strategy Startup Costs 2.0 BUSINESS SUMMARY Company Profile Stage of Development Mission Statement Location & Facilities Objectives Keys to Success Capital Requirements Location & Facilities 3.0 PRODUCT SUMMARY Products & Services Description Environmentally-Friendly Technology Systems 4.0 MARKET ANALYSIS SUMMARY Industry Analysis Market Trends Competitive Landscape Marketing Sustainability MultiService/Convenience SWOT Analysis
5.0 IMPLEMENTATION SUMMARY Value Proposition Competitive Advantage Marketing Strategy Sales Forecast Exit Strategy 6.0 ORGANIZATION SUMMARY Management Team Personnel Plan Key Relationships 7.0 FINANCIAL PLAN Key Assumptions Break-Even Analysis Projected Profit & Loss (5 yr) Projected Cash Flow (5 yr) Projected Balance Sheet (5 yr) APPENDIX Pro Forma Financials
Introduction
FETCH101 provides pet care services and peace of mind for pet owners. FETCH101s service offerings are unprecedented for the Southern California market. There are other pet day care facilities that provide overnight care with a variety of other services. But, FETCH101 has studied the competitors and realized their weaknesses to come up with a formula for success that creates space within the market for growth and future expansion. FETCH101s competitive advantage relies on having a unique facility located in a highly-visible, highly trafficked location providing a one-stop location underlying convenience, and animal wellness above all else. FETCH101 will be the first Green animal care facility in Southern California. Services Pet Day Care Overnight Care Pet Grooming Pet Bathing Gift Shop Pet Energy Work Pet Portraits Renting Venue Animal Behavior Classes Holistic Care Agility Training $35/ Day $45/ Day $30/ Session $10/ Session Ranging from foods, toys, accessories, and FETCH101 Merchandise $30/ Session $175/ Session $500/ Event $200/ Course TBD TBD
FETCH101 is exceptional because it isnt an existing facility that is modified for pet care, rather an openliving concept barn-style facility built with animals in mind. The site plan contains plenty of landscaped, monitored pastures - ideal for dogs and other animals. Additionally, Fetch101 will also include an onsite, off-leash public dog park which is vital to organically bringing pet owners to the FETCH101 grounds.
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Location
The FETCH101 facility will be established in a steadily growing area in Southeast Los Angeles County on 3.5 acres of undeveloped, open land. FETCH101 will primarily service the City of Carson, Long Beach and the adjacent cities along with commuters using the 405 and 710 freeways. FETCH101 is also intent on capturing the surrounding areas including San Pedro, Rancho Palos Verdes, Lakewood, Seal Beach, and further south. FETCH101 will be located along a very busy stretch of the southbound 405 freeway, providing visibility of the FETCH101s facilities to commuters traveling from Orange County to Los Angeles. FETCH101s management has struck a deal on the previously undeveloped land that is owned by the City of Carson to lease the property with an option to purchase after 5 years. On a daily average, there will roughly 260,000 drivers who will pass by FETCH101 and the public dog park. Currently the property is owned by the City of Carson and is protected by the Redevelopment Society. The Redevelopment Society is completely open to the development of the land, as long as the eucalyptus trees are undisturbed. The City has tried to sell the property with no success and they are willing to rezone the land. The land was valued at $3 million a few years ago but since then has lost value. The City of Carson has requested various scenarios to present in order to negotiate a favorable agreement between FETCH101, the City of Carson, and the Redevelopment Society. These scenarios each change the funds that would be required for startup ranging from $500,000 to $2.5 million. FETCH101 financial model is based on a scenario where $3,000 rent is prepaid for all 5 years to the City in the first month and FETCH101 will purchase the property from the City of Carson for $1.5 million minus the prepaid rent.
Objectives
Based on in-depth observation, industry experience, and market trends, FETCH101 has identified the following sets of objectives as key to its growth: Utilize the on-site, off-leash public dog park to position FETCH101 as the market leader in the South Bay region as the full-service, first-class animal daycare provider by marketing its added value features and convenient location. Create a model that can be expanded by franchising or by opening and operating other locations under the FETCH101 brand. Capitalize on market trends and consumer demographics to maintain high profit margins while providing upscale, transparent services.
Growing Market
The growth of pet products and services and projected increase in dollars spent on pets. A large portion of this growth is non-medical pet services such as pet grooming, day care, overnight care and behavioral medication as the consumers pets are treated more and more like a part of the family. Large retailers are entering the market adding additional pet services, realizing the huge opportunity that is available, such as PetSmart and PetCo. According to Reuters (February 12, 2010), the economy grew at a 5.7% annual rate in the fourth quarter of 2009, the fastest clip in six years, for 2 straight quarters of growth.
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Management
Owner and founder, Doug Voorhees has worked at a high profile, fast paced, customer service oriented industries for more than 27 years and has earned the respect and admiration of his business colleagues and friends alike through hard work and dedication. Doug is currently a Vice President and Manager for a major financial institution managing a team of project managers across the United States. Doug has extensive knowledge in Treasury Management, Project Management, Product Management, and Client Relations. Doug has what it takes to make this venture extremely successful. He will count on his reputation to exceed expectations while continuously establishing an active client base. To achieve his objectives, FETCH101 will use a combination of cash reserves on hand as well as long-term financing. This financing will be paid back from the cash flow of the business, collateralized by the assets of the company, backed by personal integrity, experience and a contractual guarantee from the owner. Start-up costs will be used to secure real estate, (lease with option to purchase) purchase fixed assets, supplies, advertising, and opening cash on hand.
Competitive Landscape
Indoor/Outdoor Facility THE PET SET Indoor Only Supervision Individual Space Yes Daily Care Group Playtime Yes Webcam Behavioral Modification Additional Service None Additional Service Additional Service
Day Only
No Feedings, No Walks No Walks, 2 Feedings No Walks, Medicine Leash. Offleash, 2 Feedings, Medicine Leash, 2 Feedings, Medicine Leash. Off-leash, Feedings, Medicine
Yes
No No No
Indoor
24/7
Yes
Yes
No
None
FETCH101
Yes
Yes
Yes
Added Value
FETCH101 has a clear competitive advantage over its competitors because it has superior facilities, and provides a higher quality of care for the animals. Additionally, FETCH101 provides a wider range of services at a single convenient location located in the path of 280,000 commuters daily.
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Superior Animal Care Convenient Location off Major Freeway Multiservice Facility Environmentally-Friendly / Green Business Inclusive Pick-up / Drop-off Service Public Off-Leash Dog Park on Grounds Indoor/Outdoor Facilities with Natural Grass 24/7 Care with Web Cameras available to the public Open-Living Concept
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Startup Costs
Startup Expenses Buildings/Real Estate Capital Equipment Pre=Paid Expenses Admin Expenses Opening Inventory Initial Marketing Costs Total Startup Costs These figures are based on a $800,000 loan, which covers the development of the land, the on-site public dog park, and the erection of the barn with renovations, modifications and other initial costs for doing business while leaving over $220K for cash contingencies. An important note is that in this scenario, the lease is paid 100% upfront. With no additional payments the loan will be paid off in full on time within 5 years.
FETCH101 is looking for a $800,000 million loan which will cover all the start up costs and leave $230,000 of cash reserves. The business plan contains detailed financials that show FETCH101 reaching positive operating cash flows in Month 10 with only 50% occupancy.
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Stage of Development FETCH101 is currently in the advanced phases of start-up. All partnership and alliances are in place and the business will be operational once funding has been received. FETCH101 has handpicked its location pending approval from the City of Carsons City Planner. Management has also setup its construction and build-out plan for the facilities. Furthermore, FETCH101 has developed its strategy and growth plan. Although support staff has not been hired as of yet, management has recruited the most qualified candidates and will be ready to hire when business is operable. FETCH101 has also assembled a high-quality advisory board consisting of industry and community specialists, which is detailed in this plan. Mission Statement Simply stated, FETCH101s mission is to provide a safe, healthy, environmentally friendly and entirely fun atmosphere with an abundance of interaction between dogs and humans. Fetch101 will be the leader in the market of pet care for the Southland community by providing a safe, positive, playful environment for pets. The operations will instill confidence in pet owners with our ability to personally care for their pets rather than boarding them in cages..
Objectives
Based on in-depth observation, industry experience, and market trends, FETCH101 has identified the following sets of objectives as key to its growth: Position FETCH101 as the market leader in the South Bay region as a full-service, first-class animal care provider by marketing its added value features, convenient location, as well as its on-site, free, off-leash public dog park. Create a business model that can be expanded by franchising or by opening and operating other locations under the FETCH101 brand. Capitalize on market trends and consumer demographics to maintain high profit margins while providing upscale, transparent services.
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Keys to Success
Both the short-term and long-term success of FETCH101 rests in the ability to satisfy the needs of the market above and beyond what current service providers are doing. These factors create a competitive advantage for FETCH101. Fundamentally, success lies in the following elements:
Capital Requirements
Startup Expenses Buildings/Real Estate Capital Equipment Pre=Paid Expenses Admin Expenses Opening Inventory Initial Marketing Costs Total Startup Costs Total start-up requirements include legal costs, 3.5 acres of real property, (5 year lease with option to purchase) erecting a prefabricated, solid wood structure, utilities, website design, logo design and other business related expenses. There will be many advertising expenses in the beginning that will promote the service and this expense will decrease as months economics of scale are reached and the cost to acquire new customers decreases. Start-up inventory will be mainly grooming supplies, food for the pets and other supplies such as pet bedding. Assets will be the prefabricated structure, kennels, bathing facility and play structures for the dogs. $286,432 $30,000 $192,000 $10,000 $15,000 $35,000 $ 573,432 Loans will be needed to start up the company as well as the investment. The start-up costs are to be financed as long-term financing totaling $800,000.
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Route
Long Beach, Wardlow Rd/Long Beach Blvd Long Beach, Jct. Rte. 710, Long Beach Freeway Carson, Alameda St Carson, Wilmington Ave Carson, Carson St Carson, Avalon Blvd
Peak Hour* South of Exit/Jct. 20,700 21,100 18,800 18,600 17,600 17,200
Peak Hour* North of Exit/Jct. 21,100 18,800 18,600 17,600 17,200 18,900
* Peak Hour Traffic Included is an estimate of the "peak hour" traffic at all points on the state highway system. This value is useful to traffic engineers in estimating the amount of congestion experienced, and shows how near to capacity the highway is operating. Unless otherwise indicated, peak hour values indicate the volume in both directions. A few hours each year are higher than the "peak hour", but not many. In urban and suburban areas, the peak hour normally occurs every weekday, and 200 or more hours will all be about the same. On roads with large seasonal fluctuations in traffic, the peak hour is the four near the maximum for the year but excluding a few (30 to 50 hours) that are exceedingly high and are not typical of the frequency of the high hours occurring during the season. ** AADT (Annual Average Daily Traffic) Annual average daily traffic is the total volume for the year divided by 365 days. The traffic count year is from October 1st through September 30th. Very few locations in California are actually counted continuously. Traffic Counting is generally performed by electronic counting instruments moved from location throughout the State in a program of continuous traffic count sampling. The resulting counts are adjusted to an estimate of annual average daily traffic by compensating for seasonal influence, weekly variation and other variables which may be present. Annual Average Daily Traffic is necessary for presenting a statewide picture of traffic flow, evaluating traffic trends, computing accident rates. planning and designing highways and other purposes.
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Based on annual tax for the first $10 million in receipts or the first 100 employees, as applicable, for a manufacturing company.
Based on all Part 1 crimes per 1,000 population per State of California Dept. of Justice, L.A. County Sheriff's Office, individual police depts.; figures are based on FBI definition of Part 1 crimes, which include murder, forcible rape, robbery, aggravated assault, larceny-theft, motor vehicle theft and arson.
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Services Pet Day Care Overnight Care Pet Grooming Pet Bathing Gift Shop Pet Energy Work Pet Portraits Renting Venue Animal Behavior Classes Holistic Care Agility Training $35/ Day $45/ Day $30/ Session $10/ Session Ranging from foods, toys, accessories, and FETCH101 Merchandise $30/ Session $175/ Session $500/ Event $200/ Course TBD TBD
FETCH101s pricing will be close to the competition in order draw interest and appeal. However, once FETCH101 has achieved a customer-base, pricing will increase and this increase will be justified due to broad range of products and services that no other care facility can provide. Currently, pet care competitors are in the $25-40 range for day care services.
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o o o
o o
Added Services will be the following: o In-Home Animal Care: Bonded staff will go to pet owners private homes to feed, walk, play, and check on pets as often as requested. Mail will be picked up and plants watered as well, if requested. Education Services: Partner with local academic schools and city/state owned animal care facilities in order to provide on-site education on pet care and wellness. Pet Therapy: Partner with local retirement centers, hospices and assisted living centers to provide pet therapy and promote a healthy lifestyle by using consenting customers certified pets.
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Environmentally-Friendly Facilities
FETCH101 will be the first environmentally-friendly, sustainably designed and operated dog day care and public Dog Park in Southern California. This will be a key distinguishing feature from other pet day care centers and public dog parks nationwide. The FETCH101 facilities will be built with USGBCs LEED Credit system in mind in order to maintain the highest performance in energy use, water conservation, indoor air quality, working environment, protection of plant-life and wildlife in and around the facility. Sustainable Design: o Partner with Southern California Edison (SCE) to install a photovoltaic array to produce energy and sell back extra to SCE. o Use recycled/reclaimed water for all irrigation allowable. Install a water catchment system to reduce storm water runoff and utilize this water as a secondary water source for operations. o Partner with the County of Los Angeles and participate in their 1 Million Tree program by planting at least 20 trees throughout the FETCH101 property in order to absorb CO2 emissions and produce fresh oxygen back to the community, while beautifying the grounds. o Optimized use of lighting and passive solar for day lighting and reduction in heating/cooling energy. o Work with City of Carsons Redevelopment and Preservation societys in order to minimize the disturbance to the site being developed including the use of recycled, repurposed, and reclaimed materials. o Comprehensive recycling and composting programs to drastically cut waste while producing organic fertilizer for use on the grounds.
Technology Systems
FETCH101 will maintain the latest Windows and internet capabilities, including complete e-mail functionality, on-line reservations, animal web cameras, which will allow pet owners to view their pets from around the world, as well as the purchasing of products and services online. FETCH101s transparency will also allow pet owners to provide information, answer questions and get feedback from customers and staff. An interactive Web page will be developed that will provide information and maximum exposure of available services. This website will be developed so that pet owners can access the site from home computers, laptops as well as compatible cellular phones. Online Reservation System Customer Management Indoor/Outdoor Security System with web-enabled digital camera functionality Integrated web-enabled pet cameras accessible via website Ecommerce Shopping Tool
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The Pet Set Mar Mel Inn Kennel Kare Bark! Bark! All Star Pet Resort
North East Long Beach Central Long Beach Central Long Beach Central Long Beach South Torrance
Each of the competitive facilities has restrictions including: Restricted pet drop-off and pick-up times Do not provide an on-site attendant 24-hours a day Do not provide webcams for transparency Do not have a free, on-site public dog park Limited to certain animals Smaller facilities with no open fields
There is a combination of roughly 21 grooming and boarding facilities and 6 dog training and obedience facilities throughout the surrounding communities. However, FETCH101 will offer complete and total services at one location which is extraordinary within a 45-mile radius. The only substitute to FETCH101 would be pet owners choosing to leave their pets home alone, unattended. FETCH101 will target these individuals by offering incentives for them to try new services and experience the benefits offered at Fetch101 including, but not limited to a free off-leash dog park. Owners will be able to drop their pets off for a day of care and exercise and when retrieved, the pet will be exercised, socialized, bathed and groomed. Thus, meeting the busy lifestyle of todays professional class. FETCH101 will be a One-stop shop, providing high-quality pet care with customer convenience 24 hours a day.
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Day Only
Yes
Outdoor Only
Day Only
Yes
Yes
No
Indoor/Outdoor Indoor
Yes Yes
Yes Yes
No No
Indoor
24/7
Yes
Yes
No
None
FETCH101
Yes
Yes
Yes
Added Value
Market Trends o o According to Reuters (February 12, 2010), the economy grew at a 5.7% annual rate in the fourth quarter of 2009. The fastest clip in six years, for 2 straight quarters of growth. It is reported that the pet market has fared well overall despite economic recession and will continue to grow.
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The charts and graphs below illustrate the growth of pet products and services and projected increase in dollars spent on pets. A large portion of this growth are non-medical pet services such as pet grooming, day care overnight care, and behavioral medication as the consumers pets are treated more and more like a part of the family.
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Marketing Sustainability
For several years, a number of smaller companies have publicly positioned heavily along sustainable or green lines, including Worldwise, which bills itself as an environmental consumer products company guided by the principle of sustainability, creating products from recycled materials including plastic bottles and corrugated cardboard scrap. But the movement is also in full force among larger companies, which are increasingly committing to sustainability. 2009 was a banner year for sustainable initiatives. In early 2010, Debbie Phillips-Donaldson, Editor-inChief of Petfood Industry magazine, told Packaged Facts that Pet food manufacturers and suppliers are beginning to understand that green is not just about PR value, but that green equals greenthat is, that sustainable initiatives make good business sense, too. Bearing this out, during 2009 Cardinal Labs completed the conversion of its manufacturing and distribution center in Azusa, CA to include such energy-independent features as 100% solar power. During 2010, Cardinal is expanding its green commitment in two phases, converting its dog food and treat distribution center in Baldwin Park, CA to solar power, and constructing a 70,000-square-foot distribution center run on geothermal and solar power.
Other recent sustainable initiatives involve the pet markets two biggest players: Mars and Nestl Purina. In September 2009, Mars opened what the company has hailed as the first sustainable pet food plant in
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Looking ahead, green is not just a short-term trend, but a broad-based societal shift that will come to define the way virtually all companies do business within the next decade. A key factor is the Obama
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Multiservice/Convenience
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SWOT Analysis
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THREATS Large retailers expanding services Imitation from competitors City of Carsons negotiations on piece of land.
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$2,500
$2,000
Total Budget
$69,500
$10,000
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Year 3 Objectives Mobile Pet Care Trailer will provide pet care by the hour at various community events Mobile pet washer Exercise pool to provide extensive exercise and rehabilitative services to Dogs Sub-Contract with a local veterinarian to allow pet owners the ease of veterinary care on site. Add two satellite drop-off / pick-up centers in two additional citites.
Value Proposition
Management has identified several key factors on which to differentiate the business from regional competitors.
Superior Animal Care Convenient Location off Major Freeway Multiservice Facility Environmentally-Friendly / Green Business Inclusive Pick-up / Drop-off Service Public Off-Leash Dog Park on Grounds Indoor/Outdoor Facilities with Natural Grass 24/7 Care with Web Cameras available to the public Open-Living Concept
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Promotional Strategy 10 day care visits = one free overnight visit gift certificate. 10 overnight visits = one free overnight weekend gift certificate. 10 wash your own = one free day visit gift certificate. Three referrals = one free day care visit gift certificate. Monthly drawing = one free overnight visit. Create specified packages: o Two days, one night and one wash for a special discount price. o Weekly / Monthly / Yearly packages with guaranteed availability Family discount rate for multiple pets. Promotional Items toys, Frisbees, collars, etc.
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Year 1 Day Care Overnight Care Pet Grooming Wash Your Own Pet Pet Energy Work / Reiki Pet Agility Work Gift Shop Pet Portraits Animal Behavior Classes Venue Rent
Cost of Sales
Year 2 $882,000 $165,600 $8,640 $4,320 $12,960 $3,600 $3,600 $4,200 $9,600 $11,500 ($20,904) $1,085,116
Year 3 $957,600 $183,600 $8,640 $4,680 $13,398 $3,600 $12,960 $10,800 $4,200 $9,600 ($22,852) $1,186,226
Year 4 $1,149,120 $220,320 $10,368 $5,616 $16,077 $3,870 $15,552 $12,960 $5,040 $11,520 ($27,413) $1,423,030
Year 5 $1,378,944 $264,384 $12,442 $6,739 $19,292 $4,160 $18,662 $15,552 $6,048 $13,824 ($32,887) $1,707,161
$441,000 $56,700 $4,440 $4,320 $6,660 $1,850 $10,800 $4,200 $9,600 $12,000 ($10,425) $541,145
Gross Profit
Conservative occupancy rates have been projected for space for 120 dogs and 20 cats for day care as well as 20 animals for overnight care. The days available for day care and overnight care is 20 possible in a month. Occupancy rates for projects range from 25% to 95%. All services have been conservatively projected with growth in mind.
Exit Strategy
The management team is committed to the long-term viability of the Company and its innovative concept. As such, Doug intends to effectively manage and operate the business to ensure its success. If the projections are not met, and demand is not sufficient, and/or the default on financed customers causes FETCH101 to not operate with a profit, equipment and inventory can be liquidated to cover the cost of the remaining loan amount. There also might be licensing and franchising opportunities to exit the business for any reason. In addition, the City of Carsons agreement with the land lease/purchase adds another variable if the business must be vacated. However, with the projected success, the Company may entertain a possible merger with or sale to one of its alliances or to a competitor as a potential exit strategy for the principals.
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Management Team
Doug Voorhees, Owner, Founder, and President
Personnel Plan
FETCH101 will be organized and managed in a creative manner to generate very high customer satisfaction. FETCH101 will create a working climate conducive to a high degree of personal development and satisfaction for employees. A policy manual will be developed and implemented. Job descriptions will be developed to identify necessary competencies and skill sets. Team oriented professionals with common goals and diverse backgrounds will be employed. FETCH101 will also use volunteers to provide ground supervision, dog interaction as well as administrative and custodial duties. FETCH101 will conduct regular staff meetings to discuss ideas, suggestions, and operational procedures. The FETCH101 staff will be required to attend ongoing animal care training. Seminars will be held for the FETCH101 staff and will develop an employee recognition program. As the business grows, the company will eventually offer an employee benefit package to include health and vacation benefits. Initially, FETCH101 will be managed by owner/operator, Doug Voorhees along with two individuals hired part-time to provide assistance with some of the clerical duties until the client base grows, revenues increase and additional resources are required. Additionally, there will be one employee that will provide overnight care. The long term personnel plan will be as follows: One manager to oversee and fill-in for all FETCH101 facility job roles. Two front desk receptionists to greet customers, intake pets, receive payments for services/products, set appointments, answer phones, and maintain client files both in writing and on line. Two to four playground supervisors to feed and water pets, keep areas clean, walk and exercise pets, greet guests, maintain peace, collect pets at check-out time. Two will be on staff full time and two will work part time. Additionally, there will be one staff on site after business hours. For FETCH101 to be a 24-hour facility, a total staff of 10 full time and 4 part time staff will be employed. This number will grow as the business grows. Contract Employees:
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One Veterinary Technician One Pet Groomer One Behavioral Trainer Two Pet Energy Specialists Agility Training Specialist Pet Photographer
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Key Relationships
Becoming a member of the City of Carson and Los Angeles Chamber of Commerce gives automatic credibility to FETCH101. This will create other business opportunities for FETCH101 while giving access to service providers, business leaders, and other potential alliances. Through these networking opportunities will serve as another way to publicize the business locally.
The Southern California Regional Occupational Center, also known as SoCal ROC is a leader in providing current and relevant Career Technical Education programs that are meeting todays job demands and careers of the future. In partnership with the California public school system, the SoCal ROC programs are offered to high school students as well as adults in the South Bay and surrounding communities. FETCH101 will partner with SoCal ROC to offer pet care, pet grooming, and pet therapy to enhance their curriculum and offer internship and employment opportunities to the students and adults in the South Bay. Not only will this relationship give FETCH101 access to potential employees and provide visibility within the community in order to establish credibility, but FETCH101 also benefits by obtaining skilled help from un-paid interns. Courses are offered based on the following criteria: 1) 2) 3) 4) Industry standards and identified career area shortages Meet high school graduation requirements Meet UC/CSU college entrance requirements Part of a sequential pathway
EcoTuesday is a structured networking event for sustainable business leaders that takes place on the fourth Tuesday of each month in cities across the country. This is the perfect group for Fetch101 to partner with and demonstrate FETCH101s sustainability to individuals who reward businesses for those purposes.
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The Carson-Gardena-Dominguez Rotary Club has already benefitted FETCH101. This club is comprised of wealthy, influential business leaders in the South Bay that look for up and coming businesses that could be potential members. FETCH101 has already initiated contact with this group with a positive response.
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Advisory Board
FETCH101 has put together a team of experts to help assist management in long-term strategy and provide knowledge and insight when challenges are faced. This team is comprised of individuals from Dougs personal and professional network who all have agreed to ease the decision-making process. Robert Glass Vice President of Sales and Marketing at Ascent Media. With 10+ years at Ascent Media, Roberts solid understanding of sales techniques within the entertainment industry will help Fetch101 leverage the necessary tools to better expose themselves to the community in a quick and effective manner thus increasing revenue. Carly Moss - Senior Sales Officer for Southern California Waste Management. Carlys focus at Waste Management is on the commercial sector for four counties running from Ventura county to San Diego County and everything in between. With Waste Managements focus being on the community and environment, Carly will be able to help secure a very effective, efficient and environmental friendly manner in which Fetch101 deals with their waste needs in the present and future. This will help Fetch101 to be a more Green and sustainable business within the city of Carson as well as an industry leader. Brandon Carrillo - Real Estate Professional Lee & Associates / City of Carson Rotary Club Member Between Brandons Real Estate expertise combined with his active involvement with the City of Carson Rotary Club, Brandon will be able to ensure that Fetch101 is not only making the most beneficial decisions in regards to future development and expansion but, he will also be able to ensure that Fetch101 is aligning themselves with the City of Carsons mission statement in order to establish a solid partnership with the City of Carson and the communities it serves. Dr. Keith Barry - Owner & Head Veterinarian of Agoura Hills Veterinary Hospital & Calabasas Veterinary Hospital. With Dr. Barrys 33 plus years as the head veterinarian and owner of two veterinary practices in the Conejo Valley, Fetch101 will be able to utilize Dr. Barrys expertise by ensuring that the pets served as wells as the Fetch101 campus itself are always in a good position in regards to any potential insects, parasites or diseases that might impact the health of the people or pets that frequent Fetch101. Additionally, Dr. Barry will be able to help ensure that all pets staying at Fetch101 have and maintain proper vaccinations by validating health records as well as administering any necessary vaccinations at established clinics. Amit Jain, MBA, LEED AP - Management Consultant & Sustainability Expert Amits knowledge of sustainability coupled with his success as an entrepreneur and consultant to startup organizations gives FETCH101 a great advisor. Amit can help develop sustainable strategies carried out by FETCH101 and present ideas to market FETCH101 with restricted resources. Erika Stubbs - Architecture Designer Weiss Magness Architects. Fetch101 will be able to leverage Erikas expertise as an architect designer in regards to not only developing the Fetch101 campus in the most beneficial way for both Fetch101 and the City of Carson but, to also stay directly connected to the City of Carsons future development plans for the city overall so that Fetch101 can align themselves in preparation for future expansion and development ensuring a solid partnership.
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Key Assumptions
The annual assumptions, which form the basis for much of the financial plan, are depicted below. Rates are based upon the best available current data for the industry segment. In general, forecasts are based on the best ability of management to project sales growth, operating expenses, and expected profits using a combination of experience, research, and industry standards. GENERAL ASSUMPTIONS
Tax Rate Payroll Tax/ Personnel Burden Merchant Account Costs (Credit Cards) % of Sales Paid by Credit Card Bad Transactions % Long-Term Loan Interest Rate Current Liability Interest Rate 40% 12.5% 1.89% 100% 0% 7% 0.00%
ACCOUNTS RECEIVABLE
% of Customers Paying Within Immediately 30 days 60 days 75% 25% 0%
ACCOUNTS PAYABLE
% of Vendors Paid Within Immediately 30 days 60 days 100% 0% 0%
Projection Assumptions Number of days utilized for overnight per month Number of days utilized for day care per month Average Receipt in Gift Shop Capacity Capacity Cats Overnight Capacity
10 20 25 120 20 40
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In financial projection, FETCH101 reaches 50% occupancy for day care (60 dogs) in month 6. If 90% occupancy for day care is achieved in the same period monthly revenues will double for the revenue stream alone. Contract providers receive a 30% commission as compensation. Startup costs include the purchase, construction, shipping, modification, and equipment for building and land. This scenario also includes 50% contribution from the City of Carson for the public dog park and for infrastructure (water, sewer, electricity). Startup Expenses
Buildings/Real Estate Purchase Shipment Construction PV System Leasehold Improvements Park Development Total Capital Equipment Office Equipment Operational Equipment Total Prepaid Expenses Rent Prepaid Insurance Total $182,000.00 $10,000.00 $192,000.00 $15,000.00 $15,000.00 $30,000.00 Advert Promo Expense Advertising media Total $35,000.00 $35,000.00 $56,432.00 $25,000.00 $70,000.00 $35,000.00 $25,000.00 $75,000.00 $286,432.00 Opening Inventory Finished Goods Animal Supplies Total $15,000.00 $5,000.00 $20,000.00 Admin Expense Legal and accounting fees Permits and Licenses Total $5,000.00 $5,000.00 $10,000.00
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$21,000 $900 $240 $360 $360 $100 $900 $350 $800 $1,000
($492)
$33,600 $900 $240 $360 $360 $100 $900 $350 $800 $1,000
($730)
$33,600 $900 $240 $360 $360 $100 $900 $350 $800 $1,000
($730)
$33,600 $4,500 $240 $360 $360 $100 $900 $350 $800 $1,000
($798)
$33,600 $4,500 $240 $360 $360 $100 $900 $350 $800 $1,000
($798)
$33,600 $4,500 $360 $360 $540 $150 $900 $350 $800 $1,000
($804)
$33,600 $4,500 $360 $360 $540 $150 $900 $350 $800 $1,000
($804)
$42,000 $4,500 $360 $360 $540 $150 $900 $350 $800 $1,000
($963)
$42,000 $4,500 $360 $360 $540 $150 $900 $350 $800 $1,000
($963)
$42,000 $9,000 $360 $360 $540 $150 $900 $350 $800 $1,000
($1,048)
$46,200 $9,000 $720 $360 $1,080 $300 $900 $350 $800 $1,000
($1,147)
$46,200 $9,000 $720 $360 $1,080 $300 $900 $350 $800 $1,000
($1,147)
Gross Profit
EXPENSES Loan Payment Service Providers Salaries & Wages Benefits Employee Taxes (12.5%) Marketing Expenses (all inclusive) Rent Utilities Animal Supplies Telecommunications Insurance Transportation Website Monthly Costs Facility Maintenance Office Supplies Misc. Overhead Expenses Total Expenses EBIT Taxes (real estate, income) Interest
$25,518
Month 1
$37,880
Month 2
$37,880
Month 3
$41,412
Month 4
$41,412
Month 5
$41,756
Month 6
$41,756
Month 7
$49,997
Month 8
$49,997
Month 9
$54,412
Month 10
$59,563
Month 11
$59,563
Month 12
($15,846) ($341) ($24,867) ($2,708) ($3,108) ($35,000) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($85,350) ($59,832) $0 $0
($15,846) ($341) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,450) ($15,570) $0 $0
($15,846) ($341) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,450) ($15,570) $0 $0
($15,846) ($341) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,450) ($12,038) $0 $0
($15,846) ($341) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,450) ($12,038) $0 $0
($15,846) ($425) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,534) ($11,779) $0 $0
($15,846) ($425) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,534) ($11,779) $0 $0
($15,846) ($425) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,534) ($3,537) $0 $0
($15,846) ($425) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,534) ($3,537) $0 $0
($15,846) ($425) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,534) $878 $0 $0
($15,846) ($849) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,959) $5,604 $0 $0
($15,846) ($849) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,959) $5,604 $0 $0
NET PROFIT
($59,832)
($15,570)
($15,570)
($12,038)
($12,038)
($11,779)
($11,779)
($3,537)
($3,537)
$878
$5,604
$5,604
38
Confidential
Confidential
39
FETCH101
Assets
Current assets: Cash Investments (Marketing) Inventories Accounts receivable Pre-paid expenses Other Total current assets Fixed assets: Property and equipment Leasehold improvements Equity and other investments Less accumulated depreciation Total fixed assets Other assets: Goodwill Total other assets
Balance Sheet
2010 226,568.00 35,000.00 20,000.00 192,000.00 473,568.00 2010 316,432.00 10,000.00 326,432.00 2010 -
Accrued wages Accrued compensation Income taxes payable Unearned revenue Other Total current liabilities
Owner's equity: Investment capital Accumulated retained earnings Total owner's equity
2010 -
Total assets
800,000.00
Confidential
800,000.00
40