BA-153-21774 Business Plan: Spencer Pet Groomers, Fulton, NY

The business plan outlines the strategy for Spencer Pet Groomers, a dog grooming service based in Fulton, NY. It begins with an executive summary, detailing the company's services, target customers (working class and elderly dog owners), and goals (becoming a leading pet grooming service and expanding into the New York market). The plan includes a company description, mission statement (to be the leading pet service provider), and details about principal members and legal structure. Market research covers the industry's growth, customer segmentation, competition analysis (identifying key competitors like Homie Groomers and Lucky dare care), and competitive advantages (24-hour care and services for other animals). The plan details the product/service line, pricing structure, and marketing strategy. Financial projections include profit and loss statements, cash flow analysis, and balance sheets for the first three years, highlighting sales, costs, and net profit. The plan also discusses growth strategies, communication methods, and sales prospects. The plan anticipates expansion through physical stores and an online presence, and it emphasizes the importance of customer satisfaction and referrals.

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BUSINESS PLAN
Spencer Pet Groomers
John Spencer, Owner
October 6, 2018

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1. EXECUTIVE SUMMARY
1.1 Product
Spencer Pet Groomers is a grooming service company specialising in providing grooming to dogs. The
business has met all the legal requirements and has been certified to operate in Fulton, NY. Spencer Pet
Groomers offer its products and services to customers in Fulton and New York at large.
Spencer Pet Groomers will jointly be owned by John Spencer and his wife, Mary Spencer. The two
partners will equally contribute two-thirds of the estimated $ 900,000 initial capital. The remaining
amount will be acquired through a bank loan.
1.2 Customers
Spencer Pet Groomers target working class and elderly dog owners in Fulton, NY.
1.3 What Drives Us
The goal of Spencer Pet Groomers is to become a reputable and leading dog grooming service
company in Fulton. The company focus on expanding its services into the New York market in the next
five years. The goal will be achieved by providing quality products and services at affordable prices.

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2. COMPANY DESCRIPTION
2.1 Mission Statement
Spencer Pet Groomers seek to become the leading pet service provider in New York. The company
focus on service quality by providing outstanding products and services to the customers. Spencer Pet
Groomers will use such a simple mission to become a number one choice to customers.
2.2 Principal Members
The Spencers will manage Spencer Pet Groomers. Paul Spencer will be the Chief Executive Officer
while Mary Spencer will be the company's administration manager. The company will also hire;
· A veterinary doctor
· Accountant
· Three Dog groomers and trainers
· Marketing and Sales Manager
2.3 Legal Structure
Spencer Pet Company have satisfied all the legal requirements to operate in Fulton, NY.
The Company will be owned jointly by Paul Spencer and Mary Spencer. Paul will be the CEO while
Mary will be the Administrative and human resource manager. All the other employees will report
directly to the co-owners.1
1 Abrams, Rhonda. 2010. Successful Business Plan: Secrets & Strategies (Successful Business Plan Secrets and Strategies).
New York: Planning Shop.

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3. MARKET RESEARCH
3.1 Industry
The number of pet owners has increased in the United States. Today pets are not only part of a family;
they have become a family to some. Pet owners have invested handsomely for their pets the same way
they would spend on their children2.
Likewise, the current trend in the labor market shows that people choose to work for many days and
more hours. Elderly citizens also seek the service of pet groomers while on holidays and business
travels.
In Fulton, over 300,000 households own pets while approximately 70 million people own pets in the
United States. Pets play an important role in the lives of U.S citizens, and pet owners strive to provide
them with a quality life.3
3.2 Customers
Spencer Pet Groomers conducted thorough research to identify its key customers. The customers
include citizens who work many days and long hours; those on family and business travels and the
elderly. Customers have been grouped into:
· Individual and Householders
· Dog breeders
· Institutions and Corporate organizations
· Government agencies
2 Berry, Tim. 2006. Hurdle: The Book on Business Planning . New York: Palo Alto Software.
3 Blackwell, Edward. 2008. How to Prepare a Business Plan. London: Kogan Page Publisher.

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3.3 Competitors
Competition comes in several forms in the pet grooming industry. Currently, there are 53 pet washing
and grooming businesses in Fulton. There is a low cost to be incurred by new entrants. Among the 53
firms, Spencer Pet Groomers has identified six key competitors namely;
· Homie Groomers.
· Lucky dare care.
· Snoopy Grooming service.
· Browsers Bath.
· Millie Pets.
· And, Aqua Dog Groomers.
3.4 Competitive Advantage
Most of the competitors only provide daycare, washing and grooming services.
Spencer will provide 24-hour care to; customers will conveniently pick their pets at their desired time.
Moreover, competitors, focus on providing dog services only; Spencer Pet Groomers will diversify its
facilities to accommodate other animals as well.4
3.5 Regulation
Law requires Pet grooming Companies to register with the Commissioner of Agriculture. The license is
renewed every year.
Spencer has also registered with the Department of Commerce as a company.
Likewise, pet growing companies are required to have a grooming facility which should be maintained
4 Pinson, Linda. 2013. Anatomy of a Business Plan: The Step-by-Step Guide to Building a Business and Securing Your
Company's Future (Small Business Strategies Series) . New York: ut Of Your Mind . . . And Into The Mark.

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in a sanitary manner.5
Lastly, a company should ensure that the facility enhances public safety.
Spencer Pet Groomers have met the necessary legal requirements.
5 Prayson, Richard A. 2014. "Perspectives on Learning and Business Plans—More in Common Than Meets the Eye."
Journal of Graduate Medical Education 6(1): 15–17.

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4. PRODUCT/SERVICE LINE
4.1 Product or Service
Spencer Pet Groomers seek to offer quality products and services in Fulton's pet grooming industry.
The company is committed to providing pet/ dog related products and services to customers in Fulton
and New York at large.6 The company seeks to provide the following products and services to its
customers:
· General grooming services
· Sales of puppy and dog kennels
· Pet sales
· Training dogs with skills like security and hunting.
· Training and selling security
· Selling dog products like food, chains, dog ties, and shampoos.
· Veterinary services
4.2 Pricing Structure
In the pet grooming industry, offering products and services at the lowest prices do not guarantee
success. Spencer Pet Groomers with offering its products and services at competitive prices. The price
will vary from one product/ services to another. Products and services will range as shown below:
· General grooming services at $ 1,000 per month
· Sales of puppy and dog kennels will range between $ 200 and $ 500.
6 Prayson, Richard A. 2014. "Perspectives on Learning and Business Plans—More in Common Than Meets the Eye."
Journal of Graduate Medical Education 6(1): 15–17.

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· Pet sales at $ 700 per pet
· Training dogs with skills like security and hunting at $ 1,000
· Training and selling security at $ 1,500
· Selling dog products like food, chains, dog ties, and shampoos at a range of $ 30 and $ 100.
· Veterinary services ranging between $ 30 and $ 500.
4.3 Product/Service Life Cycle
The Fulton pet industry is at its expansion stage. There are several unexploited services Spencer Pet
Groomers seek to provide. For example, the Night care service is at its start-up stage. On the other
hand, pet grooming and washing segment are at their maturity stage.7
4.4 Intellectual Property Rights
Spencer Pet Groomers seek to develop a unique brand in the industry. The company has already applied
for a trademark which will help to protect its intellectual property rights. The trademark will protect the
company from identity theft and counterfeit products.
4.5 Research & Development
In future, the Spencer Pet Groomers is planning to:
· Offer home veterinary services: The Company will employ veterinary personnel to attend to
emergency services in the household.
· Offer internet services that will allow customers to watch their pets while at work or on
business and family travels.8
7 Abrams, Rhonda. 2010. Successful Business Plan: Secrets & Strategies (Successful Business Plan Secrets and Strategies).
New York: Planning Shop.
8 Berry, Tim. 2006. Hurdle: The Book on Business Planning . New York: Palo Alto Software.

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5. MARKETING & SALES
5.1 Growth Strategy
Spencer Pet Groomers is focused on making a profit. Satisfying customers' needs through quality
products and services are the company's best marking strategy.
Spencer will over-diversified and unique products and services to its customers. Satisfied customers
will always come back. Likewise, the company will rely on mouth referrals from satisfied customers.9
5.2 Communication
Spencer Pet Groomers will promote its products and services through:
· Distribution of brochures to corporate and institutions
· Advertisement on the local TV and radio stations
· Company's official websites
· Social media platforms such as Facebook, Twitter and Instagram.
· Distributing brochures to pet stores, Zoos, local veterinarians, hotels and restaurants.
· Send emails to registered pet owners.
5.3 Prospects
First, Spencer Pet Groomers will offer its products and facilities at their facility.
Second, the company will set up three pet stores strategically in Fulton where customers can easily
access their products.
9 Blackwell, Edward. 2008. How to Prepare a Business Plan. London: Kogan Page Publisher.

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Third, develop an online store where customers located in New York will place orders. The company
will deliver the products using local based courier services.

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6. FINANCIAL PROJECTIONS
6.1 Profit & Loss
Year 1 Year 2 Year 3
Sales $500,000 $750,000 $900,000
Costs/Goods Sold $150,000 $200,000 $300,000
GROSS PROFIT
OPERATING EXPENSES
$350,000 $550,000 $600,000
Salary (Office & Overhead) $60,000 $60,000 $80,000
Payroll (taxes, etc.) $20,000 $20,000 $20,000
Outside Services $10,000 $10,000 $10,000
Supplies (Office & Operation) $5,000 $5,500 $7,000
Repairs & Maintenance $5,000 $10,000 $10,000
Advertising $30,000 $30,000 $30,000
Car, Delivery & Travel $4,000 $5,000 $6,000
Accounting & Legal $5,000 $5,000 $5,000
Rent $10,000 $10,000 $10,000
Telephone $1,000 $1,200 $1,500
Utilities $20,000 $20,000 $20,000
Insurance $70,000 $70,000 $75,000
Taxes (Real Estate, etc.) $0 $0 $0
Interest $5,000 $5,000 $5,000
Depreciation $5,000 $5,000 $5,000
Other Expenses $1,000 $1,200 $1,200
TOTAL EXPENSES $251,000 $257,900 $285,700
NET PROFIT BEFORE TAXES $99,000 $292,100 $314,300
Income Taxes $30,000 $45,000 $60,000
NET PROFIT AFTER TAX $69,000 $247,100 $254,300
Owner Draw/Dividends $20,000 $100,000 $100,000
ADJUSTED TO RETAINED $49,000 $147,100 $154,300

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6.2 Cash Flow (12/31/2018 to 12/31/2018)
Pre-Startup
EST
Year 1 Year 2 Year 3 Total Item
EST
Cash on Hand $423,000 $-455,500 $-450,000 $-145,000 $-627,500
CASH RECEIPTS
Cash Sales $300,000 $350,000 $600,000 $700,000 $1,950,000
Collections from CR
Accounts
$0 $130,000 $200,000 $250,000 $580,000
Loan/Cash Injection $10,000 $0 $0 $0 $10,000
TOTAL CASH RECEIPTS $310,000 $480,000 $800,000 $950,000 $2,540,000
TOTAL CASH
AVAILABLE
$733,000 $24,500 $350,000 $805,000 $1,912,500
CASH PAID OUT
Purchases $500,000 $100,000 $100,000 $10,000 $710,000
Gross Wages $60,000 $60,000 $70,000 $75,000 $265,000
Outside Services $5,000 $6,000 $6,500 $80,000 $97,500
Supplies $30,000 $30,000 $40,000 $4,500 $104,500
Repairs & Maintenance $10,000 $10,000 $10,000 $12,000 $42,000
Advertising $30,000 $30,000 $30,000 $30,000 $120,000
Car, Delivery & Travel $30,000 $30,000 $30,000 $30,000 $120,000
Accounting & Legal $4,500 $4,500 $4,500 $4,500 $18,000
Rent $50,000 $50,000 $50,000 $5,000 $155,000
Telephone $10,000 $10,000 $10,000 $10,000 $40,000
Utilities $20,000 $20,000 $20,000 $20,000 $80,000
Insurance $35,000 $35,000 $35,000 $35,000 $140,000
Taxes (Real Estate, etc.) $350,000 $35,000 $35,000 $35,000 $455,000
Interest $10,000 $10,000 $10,000 $10,000 $40,000
Other Expenses $1,000 $1,000 $1,000 $1,000 $4,000
SUBTOTAL $1,145,500 $431,500 $452,000 $362,000 $2,391,000
Loan Principal Payment $33,000 $33,000 $33,000 $33,000 $132,000
Capital Purchase $0
Other Startup Costs $0 $0 $0 $0 $0