Question

Business Case situation: You have decided to explore the idea of opening your own pet food and supplies retail store. You have 10 years of retail management experience, a college diploma in business and a strong love for animals. You currently live in the Toronto area – but are willing to move. You are leaning towards serving the higher end of the market – but are not sure. You want to provide a good range of products, maybe focused more heavily on higher quality goods that cater to other pet lovers like you. At the same time, however, you know the value of a dollar and that everything seems very expensive. You are a bit unclear on the specific direction you should take. You know that a great deal of research and analysis is needed to better understand the opportunity, formalize your mission/goals and shape your business. Your research will also help inform how your business may grow. You also know that at the end of the day, you may need to make very important assumptions – some of these at a very high level. Indeed, you know from your time as a student that the perfect set of relevant research may be unavailable or incomplete.

Please write a thorough financial plan for a business plan for the above scenario (approx 500 words)

Answer 1

Peruse pet stores, and you'll see lots of trends that reflect the human specialty and natural food trends: We all want good, clean food. Just like the shift toward natural foods in human foods, pet owners are embracing fresh, clean ingredients.

These trends drive success at the small business level, The shift toward a more health-conscious pet owner mentality continues to open up new market opportunities for an aspiring small-business owner.Animal safety should, of course, be of first priority for a pet food manufacturer. The Federal Food, Drug, and Cosmetic Act requires that all animal foods be safe, produced under sanitary conditions, contain no harmful substances, and be truthfully labeled, just as with our own human foods..

Select a business structure with advice from a Certified Public Accountant familiar with pet-related and small retail businesses. Common business forms include sole proprietorships, limited liability companies, Subchapter S corporations and general corporations. Contact a commercial insurance agent with similar background and liability experience, obtain a business license at your city or county clerk’s office and contact your state Department of Revenue for a sales tax license.

Obtain a retail business location that is easily accessed from main roads and with plenty of customer parking. Ensure that large delivery trucks can easily reach your store as well. Obtain written zoning department approval before you sign a building lease and engage a sign-making company to create colorful pet-related graphics that accurately describe your pet supply business.

Compile a list of pet supply stores in your city and surrounding towns and discreetly visit each store to view the shop’s product line, layout and employee interactions with customers. Obtain copies of promotional materials and information on educational events scheduled at the shops.

Pinpoint your pet product lines. Pet supply businesses cater to a variety of market segments, notes “Entrepreneur” Magazine. Some stores focus on healthy pet products, including organic pet foods and non-toxic bathing and grooming supplies. Other businesses feature standard pet supply products, along with fancy pet clothes and bedding for pet owners with higher budgets. Pet owners who purchase products from online retailers represent another market segment.

Order your pet supply products. Select a pet product line based on available shelf space and on identification of products unavailable at competitors' stores. Prepare a merchandise order that includes bathing and grooming products, dental health supplies and training aids. Include treats and general-purpose foods. Ask your veterinarian to recommend specialty foods for various animals' medical conditions. Evaluate the feasibility of supplies for birds, reptiles and small pets, such as ferrets and hamsters.

Hire outgoing and pet-loving staff. Search for employees in community college veterinary assistant programs and animal rescue groups. Place newspaper "Help Wanted" ads searching for animal lovers who enjoy helping other pet owners.

Open your pet supply store with a grand opening event for well-behaved pets and their owners. Feature discounts on higher-margin items and volume food purchases. Conduct pet product giveaways, and utilize entry forms to create a mailing list. Invite veterinarians or pet care experts to speak on the benefits of quality pet nutrition and care. Advertise the event in ads on the local newspapers’ community pages, and place fliers at veterinarians’ offices and grooming shops.