Daily Doggy Care Centre Business Plan: A Small Business Case Study

This case study presents a business plan analysis for Daily Doggy Care Centre, a dog daycare startup founded by Gabriel and Jamie. The plan includes an overview of the company's services, targeting individual pet owners in the North-western Sydney area with both in-store and online offerings. A competitive analysis identifies Paws of Fun and Pet Resorts as key competitors, evaluating their advantages and disadvantages in terms of pricing and service offerings. The analysis also covers costing processes, emphasizing the importance of operating costing methods for service-based businesses. Key Performance Indicators (KPIs) such as service cost and business span are discussed, along with compliance and the importance of internal control systems. The financial section includes a break-even point analysis, cost categorization, and an explanation of the differences between break-even point and living costs. It also features financial forecasting, including revenue projections and a discussion of the reliability of forecasting techniques, succession planning and a professional letter. The assignment provides a detailed overview of the critical elements involved in planning and launching a successful small business.

Running head: Business Plan
Business Plan
Name of the Student
Name of the University
Author Note

1
BUSINESS PLAN
Table of Contents
Section One – Understanding the Small Business Environment...............................................2
1 – Overall Information of the Company...................................................................................2
2A- Investigation of the Competitors in the market...................................................................2
2B -Advantage and Disadvantage of the Competitors...............................................................3
3 A Costing Process...................................................................................................................7
3 B Key Performance Indicators................................................................................................7
8 – Compliance..........................................................................................................................8
9 - Importance of Internal Control System................................................................................8
Section Two: Financial Preparation & Analysis........................................................................9
B: Report Explanation................................................................................................................9
Requirement 1:.......................................................................................................................9
Requirement 2:.....................................................................................................................10
Requirement 3:.....................................................................................................................11
Section 3: Financial Preparation and Forecasting....................................................................11
Forecasted Revenue.............................................................................................................11
Reliability of the Forecasting Techniques............................................................................13
Section 4: Financial Preparation and Forecasting- Financial Options.....................................14
Section 5: Succession Plan.......................................................................................................15
Professional Letter...............................................................................................................15
Reference..................................................................................................................................17

2
BUSINESS PLAN
Section One – Understanding the Small Business Environment
1 – Overall Information of the Company
The business which Gabriel and Jamie want to establish is dog care centre. As they
have experience in this filed and able to know all the policy and principle which there in
regards are so the business so they want to establish the same so that they will able to get
revenue from the business. As per the business is concern they wanted to make a start on a
larger scale and it will be situated in North-western Sydney Area, the name of the start-up
will be Daily Doggy Care Centre.
The business is based upon the dog care centre so it will target all the individual pet
owners in the locality as their prime customer upon that it will also provide its services online
so that it can able to satisfy the demand of Australian customers. The company provide
services like it will be selling the pet product in their shop and also in their online store and
also, they will deal in caring of the dogs in the day time.
The location which is been consider by the Gabriel and Jamie is in North-western
Sydney Area so it is the area which is been selected for the business operation and also it is
able to make an online website so that it can able to sell their product online and able to serve
more number of the customers.
2A- Investigation of the Competitors in the market
The competitors are also very important part for any business organization as there
they how can directly affect the business profit so it is necessary for the business house to
know the competitors in the business.

3
BUSINESS PLAN
Name of the
Competitor
Address of the Business
Paws of Fun 58 Australia St, Camperdown NSW 2050, Australia
PetResorts 425 Galston Road, Dural NSW 2158
2B -Advantage and Disadvantage of the Competitors
The advantage and the disadvantage of the competitors which are been shown above
is been shown below:
Paws of Fun
It is an Australian based Dog care centre and it carries its business as by
making local dog store in the country (Pawsoffun.com.au 2019). The services which is been
offered by the company is that it provides services like supervised dog care centre and also
the salon services so that the individual is able to make their dogs look good. The advantage
is that it able to hold the customer in the market as it is being carrying its business from
longer period so it able to have some sort of the goodwill and as a result of it the company is
able to hold the market so it will be a tough job for the new business to carry their business in
the market and to hold the customers (Dunphy et al. 2015). The disadvantage which can be
said in the company is that it able to serve so years so it is able to charge a high price so if the
company is able to give the same service at low cost so that it will able to get customers in
the market.
Company is able to many types of the services in the shop and the pricing which is
been there is shown below:

4
BUSINESS PLAN
Table No – 1
Source - Author
So from the above it can be know about the play school service which is been
provided by the Paws of Fun and how it charged the cost from different individual as it show
that it have many plans and the customer can able to show any one of them as per their
requirement (Pawsoffun.com.au 2019).
Table No – 2
Source – Author
The above table show about the dog grooming services charges which the company is able to
charge from each individual. So, it can be said that it the company is able to have many

5
BUSINESS PLAN
option and the individual can able to select the one which is required by the individual
(Pawsoffun.com.au 2019).
Pet Resorts
It is also an Australian dog care centre and provides different types of the services to
the individual. The advantage which the company has that it have infrastructure in very large
scale so it add up value to the company and as a result it able to get more number of the
customers in the business and also able to serve more quality of services as it contain experts
which have experience of the field of many years so it will be very tough for the company to
make up with them so if the new company want to take their part in the market than it will
have to give better quality of the service in low rate company to the existing company
(www.petresortsaustralia.com 2019). The only disadvantage is that it charged a high price as
it takes into consideration the premium clients so the new company can able to get the
business by targeting low client so that it can able to hold low level of individual.
The company provide dog care service and the charge which they charge from the
individual is been shown below:

6
BUSINESS PLAN
Table No – 3
Source – Author
So, from the above it can be seen that the charges which the company take from the
individual in regards of the services and it can be seen that it charges the amount as per the
different services and it gave many options to the individual to choose from the service list
(www.petresortsaustralia.com 2019).

7
BUSINESS PLAN
3 A Costing Process
Costing is the process which is been carried by then company so that it can able to
know the amount of the money which will be spend in regards of the service provided and
also it helps the company to know the amount of the price they should charge from the
customer (Botha and Robertson 2014). As the company is able to know the cost and it add the
profit margin and as a result it able to get the price of the services. So as the company is
providing the service on day basic of the should do the costing as per operating costing
method so that it can able to take out the cost as per the hours of the services provided to the
dogs (Burns and Dewhurst 2016).
While calculating the selling price it should take into consideration the Variable and
fixed cost as the combination of both will form the prime cost and then it has to add the profit
margin in the prime cost and then the output will be the selling price of the service and for the
calculation it should take into consideration the operating cost method (McKeever 2016).
3 B Key Performance Indicators
Key Performance Indicators are the indicator it shows how the company is able to
perform in the future and how it can able to meet the need and objective of the business
(Rosati and Conti 2016). As the company is the start-up so it should take into consideration
many factors and the factors are been shown below:
 Cost of the Service – Firstly is should take into consideration the initial amount of
the cost which is to spend in order to get the return and also it have to know the
amount of the revenue it will able to earn form the same by providing the services so
it should know the cost and revenue of the business (Rosati and Conti 2016).
 Span of the Business – Secondly it should able to check the time period of the
business as it should take into consideration the span time so that if there is no scope

8
BUSINESS PLAN
in the business than it will not able to start up the same so if there worth in the
business than only the individual should do the start-up (Scarborough 2016).
8 – Compliance
The company should able to record all the information properly and timely so that it
will help them to know all the details of the transaction easily and effectively and also it helps
them to know the date on which the expense is been made (Tounés, Lassas-Clerc and Fayolle
2014). If some time it wants to check the information it can easily check them as it is been
recorded timely so it also help them to match between the two entries. If the company is able
to do the transaction as per the required by the compliance as it will able to get proper method
of the accounting and also it able to give a better presentation in the financial statement.
Internal control shows how the company is able to manage their internal management
as if there is any weakness in the internal control than it will directly affect the business risk
of the company (Ward 2016). So, it is necessary for the company to have a proper amount of
internal control so that it can able to have able to control all the business risk which happens
in the company.
9 - Importance of Internal Control System
The company should able to manage all the accounts receivables so that it able to
know how the cash inflow is been carried by the company. So the company should able to
record all the revenue effectively so that there will be no material misstatement in the
financial statement of the company. The company should have proper internal control system
so that it able to record all the proper amount of the details of the revenue and able to show
proper amount of the revenue in the financial statement and it also help them to make all the
information properly in the system so that if any information is been needed by the company
than it can able to have the information easily and effectively.

9
BUSINESS PLAN
Section Two: Financial Preparation & Analysis
Explanation of Break-Even Point
In accounting break-even point is defined as revenues necessary to cover a business’s
total fixed costs and variable cost for the specified time period. Break-even point represents
either in sale units or revenues terms which is needed to cover the total costs of the company
(Kimmel et al. 2017). Break-even is considered useful for the business owners in determining
the degree of profitability.
Explanation of various types of cost and their impact on Break-even point:
Cost is something in break-even that can be categorized in numerous ways based on
the nature of cost. The most general method is classifying the cost into fixed and variable
costs. The fixed does not changes with the rise or fall in units of production. Based on this
cost, the break-even point is useful in ascertaining the number of units or dollars of revenue
that is required to cover the overall cost.
Difference between break-even-point and living costs:
 The break-even point is regarded as the measure of substance whereas the living cost
is the measure of risks
 With lower amount of break-even quantity, the better it is for the company, while
higher is the living cost, the better it is for company.
B: Report Explanation
Requirement 1:
The key performance indicators which can be identified from the business plan which
is being formulated by the business are listed below in details:

10
BUSINESS PLAN
 Increase in the number of customers which can be served by the business is one of the
performance indicators of the business. As the number of customers which is served
by the business increases so does the revenue which is generated by the business.
 The profits which is generated by the business is also one of the performance
indicator of the business as the same is the main objective of conducting the business.
The profits which is made by the business depends on the total fees which is collected
by the business.
 The total payments include significant payments which are undertaken by the
business during the period are important as the same have a direct impact on the
profits of the business. Therefore, the cost consideration is considered to be important.
 The cash balance which is available with the management of the company is also
considered to be one of the consideration of performance as availability of the same
means that the liquidity position of the business is intact and appropriate.
 The satisfaction of the customers is also one of the consideration which can affect the
decisions of the business and is considered to be one of the financial indicators of the
business.
Requirement 2:
The difference between the success of the company and the one that fails is generally
the cash management. Having a very little sum of cash implies that a business might have to
pass the ventures that are profitable and may take out loans to overcome the issues of
liquidity (Macve 2015). Very little amount of cash might imply that the company is unable to
function at the normal level or it is forced close its operations completely. To avoid such kind
of issues, company generally remains dependent on cash flow budget to plan and control cash
receipts as well as payments. The cash flow budget is regarded as the effective method of

11
BUSINESS PLAN
keeping up with the real time company outgoings. Maintaining the cash flow budget would
help in forecasting the overall health of the company.
Requirement 3:
Under the accounting terms, variance can be defined as the difference between the
anticipated or the planned amount and the actual amount. For instance, variance occurs for
items that are is contained inside the departments export report.
Importance of variance:
Variance analysis is useful in effective budgeting activity since the management
wants to have lower deviation from the budgets that is planned (Hoyle, Schaefer and Doupnik
2015). The lower amount of deviations helps the managers in making a detailed as well as
forward looking budget decisions.
Variance analysis also acts as the mechanism of control. Variance analysis helps the
management in making the probable ways of how such kind of deviations can be avoided.
The variance analysis helps in passing on the responsibility by employing control mechanism
on required departments. If the labour efficiency variance is found to be unfavourable or the
purchase of raw materials is unfavourable, the management can improve control of the
departments to improve the efficiency.
Section 3: Financial Preparation and Forecasting
Forecasted Revenue
Autumn
2019 Actual Sales