Business Plan General Partner, Alisa Paykos-Theurer Member ...

Business Plan

General Partner, Alisa Paykos-Theurer Member, Sarina Hatton Member, Lorna Colligan BOW chika WOW TOWN ™ Where Dogs Bring their People to Play. 55 Summer Street Westerly, RI 02891 401.378.2643

General Company Description BOW chika WOW TOWN ™ intends to focus on creating the social go to spot for dogs and dog owners to play in Warwick, Rhode Island. Our business is the first and only club that accommodates indoor/outdoor play for dogs and their owners without requiring participation in a class or training session. The business will attract and retain members with our unique services, safe, fun and clean facility and engaging customer care. Our core services will include an indoor dog run for dogs and owners to play together, dog daycare and overnight boarding. Although these are our core services, BOW chika WOW TOWN ™ will capitalize on our exceptional skills in relationship building and networking to partner with other businesses and organizations to facilitate economic and civic development within our community. Our Mission: At BOW chika WOW TOWN ™, our mission is to create a safe, clean, and exciting play community where dog lovers can enjoy playing with their furry friends or they can feel at ease leaving beloved Fee Fee or Fido in a cage free daycare while they take care of life’s responsibilities. Our Core Values are health and well being, relationship building between dogs and their owners, and community development. We know that dog lovers want to help their dog socialize without exposing them to dogs that are not up to date on shots and vaccinations. We also know active dogs are eager to get their daily play fix with their people no matter what Mother Nature is doing outside. Our Indoor Open Play Space solves both dilemmas. When dog owners provide our staff the required Veterinarian records, BOW chika WOW TOWN provides our dog owners the opportunity to safely and comfortably exercise their furry family member without the annoyance of snowstorms, heat waves, rain showers, dark cold nights or chaotic and hazardous dog parks. Company Strengths: 1. Capture a large percentage of the market share in a quickly growing industry. Since 1998 the Pet Industry market in the United States has steadily increased by approximately $2 billion each year. The industry is projected to surpass $52.87 billion in 2012. Of that figure, the non-food pet supplies’ share of the market is 61%, or $32.4 billion. Industry’s statistics also show dogs are the pet of choice for 46.3%* of households surveyed. Based on demographic statistics, the potential to thrive in Warwick, RI is very probable. 2. Location- Warwick, RI, Demographic Statistics. Warwick is resided by our target market (see statistics below). There is a significant middle to upper middle class population with the disposable income that will enable this business to capture the market share, thrive and grow. Additionally, the facility is located less than 5 miles from T F Green International Airport and right off exit 14 on I-95, a major highway. BOW chika WOW TOWN ™ is very convenient for dog owners who need boarding during vacations or need to drop their dog at daycare on their way to work. Warwick, RI, demographic, cont’d • 43,119 (50%) individuals are between the ages of 24 and 60 OF THOSE • 27,596 (64%) households earn between $35K and $150K OF THOSE • 12,776 (46.3%*) households are estimated to own a dog

3. Provide value and fill a need. BOW chika WOW TOWN ™ will be the first and only indoor dog run in the region, inviting dogs and their owners to drop in to play and socialize together. This unique service will attract a market that may not need dog daycare or boarding but will consider our business after experiencing our culture. While at our facility you will see the stay at home mom bringing the family dog to run around with her little one in tow, retired Baby Boomers looking for socialization and recreation opportunities, and young adults who are more likely to commit to the needs of a loving dog before committing to owning a home, getting married or starting families. Dogs, as a social companion, have established their place in the family unit and BOW chika WOW TOWN ™ will become the go to place for that family. 4. Focus on customer care and a remarkable organizational culture. Our upbeat and attentive staff, bright colors, clean facility, and a space that showcases a fun environment will meet everyone who walks through the door. Staff will be upheld to very high standards in regards to integrity, customer care, and dog handling.

Business Structure The Business is to be organized as a Limited Liability Corporation and primarily operated by Alisa Paykos-Theurer. Mrs. Paykos-Theurer has over 10 years of diverse professional experience, specifically in the areas of administration/community development/program analysis and small business development. Mrs. Paykos-Theurer will combine her expertise in administration and business development with certified dog trainers and experts in the field. Mrs. Theurer earned a Master’s Degree in Public Administration and a Certification in Accounting, Budgeting, and Financial Management from Rutgers University. As a small business owner, she has gained skills and a firm understanding of marketing strategies, budgeting and accounting management. Her personnel management skills and style of leadership foster positive organizational cultures, thus securing results from her team. She has experience in executive leadership, organizational development, and accounting- a powerful combo to foster a dynamic business with fiscal prowess, thus creating a unique atmosphere for pet owners and their dogs to socialize. Business Philosophy: Come to play, stay for the difference. Initially, clients are expected to ‘check out’ the indoor park in town because it is unique and new. In addition to the growing need and utilization of dog daycare and boarding, the business intends to captivate potential members by facilitating an experience that plays to the idea of belonging to a community, thus initiating a relationship that brings them back for more. Health and wellbeing, relationship building and community development are the core values of the business model. Although advertising is vital to jump start the business within the first few quarters, the business intends to gain new members through attraction, not necessarily promotion.

Financial Statement Start Up Summary: The start up costs for BOW chika WOW TOWN ™ is will be cost efficient and set the business up for unique services for market gain. Leasehold improvements will be the main expense, which will consist of a build out to separate dog run spaces into two areas, a small area for overnight boarding, a small area for children to play, a small office space, a lobby, and a to treat the floor with an epoxy. Equipment must be purchased to ensure the cleanliness and safeness of the facility. Advertising will be a vital role in promoting the new business, however this expense will lesson over time as people become aware of our remarkable service. Table: Start Up Funding Provided upon request Business Goals and Opportunities: 1) Launch the business and develop sales approaching $15K per month by the end of the first year. 2) Break even in the first quarter of second year and be continue profitability into the third year. 3) Increase sales by 20% per year in the second and third year while also maintaining profitability. 4) Diversify revenue stream during second or third year by adding services to equal 20% of the Contribution Margin. 5) Profit more from the law of attraction and less on promoting by the 3rd year. 6) Grow brand and expand business to include multiple locations. 7) Expand while maintaining a healthy, socially conscious business that is the leading model for Indoor Dog Parks by cultivating a loyal customer following.

Profit/Loss Projection: 1. Based on profits derived from our core services, a worst case scenario a. BOW chika WOW TOWN will serve 1.5 dogs a day in the start up phase to 24 dogs a day by the 1st year during the peak times of year (December to April). b. Net Profit will increase 26% by the end of the 2nd fiscal year. c. Net Profit will increase 32% from the 2nd year to the end of 3rd year. 2. Based on profits derived from our core services, a probable case scenario a. BOW chika WOW TOWN will serve 15 dogs a day on average in start up phase to 36 dogs a day on average by the 3rd year during our peak time of year (December to April). b. Net Profit will increase 32% from 1st year to 2nd year. c. Net Profit will increase 23% from the 2nd year to the end of 3rd year.

3. Based on profits derived from our core service, a best case scenario a. BOW chika WOW TOWN will serve 18 dogs a day on average in start up phase to 51 dogs a day on average by the 3rd year during peak times of year. b. Net profit will increase 23% from the 1st year to the end of 2nd year. c. Net profit will increase 29% from the 2nd year to the end of 3rd year. Factors which cause the # of sales to fluctuate are mostly caused by the change in seasons. It is assumed that less people will purchase play passes during the warmer months. Families take vacations during the summer months and during holiday seasons, thus leading to greater number of owners using boarding. 3 Year Profit Loss Projection- Detailed:

Provided upon request

The change in expenses are attributed to: o Increase in wage expenses reflects employees needed to maintain a handler/dog ratio of 1:8. o Increase in cleaning reflects the need to keep up with increased members

Break Even Analysis: Provided upon request According to break even projections, BOW chika WOW TOWN will break even in the 11 month of operation (July 2013). Cost Description Variable Costs Direct Labor (including payroll taxes) Office Supplies Cleaning Supplies Repairs & Maintainence

Fixed Costs ($)

35.9% 2.3% 1.8% 2.0%

Fixed Costs Salaries (includes payroll taxes) Supplies Repairs & maintenance Advertising Car, delivery and travel Accounting and legal Rent Telephone Utilities Insurance Taxes (Real estate, etc.) Interest Depreciation Trash Collection Other (specify) Miscellaneous expenses Principal portion of debt payment Owner's draw

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Total Fixed Costs

$

6,900 55,000 1,800 4,250 4,800 3,360 1,200 77,310

Total Variable Costs

Breakeven Sales level =

Variable Costs (%)

42%

133293

Identifying our Niche & Servicing the Need: Our Competitive Advantage • • • • • •

The only business that provides Open Play with owners present. More services than 2/3 of the competition. Emphasis on socializing opportunities for both dog and owner Focus on membership/community development Only business that provides shuttle service for dog boarding from/to airport for owners’ convenience. Location is convenient to Interstate 95 on/off ramps

Services

Metro

Me

Ocean Dog 4 Paws Resort

Barking Salty Dog Lot

Me

Ocean Dog 4 Paws Resort

Barking Salty Dog Metro Pet Lot

Pet

Open Play w/Owner Daycare Boarding Airport Shuttle (Boarders) Training w/ Owner Agility Classes Grooming Seminars Vet Hours Breed Meetups

Services & Rates Open Play Daily

8

Mighty Min Pin

35

Loving Lab

60

The Great Dane

125

Half Day

16

Full Day

26

5 Day Pk

120

10 Day Pk

220

20 Day Pk

Daycare 15

15

15

18

25

25

22

80

120

112.5

216

230

213

420

410

440

400

36

35

38

140

150

24

Boarding

Providence Airport Pick Up/Drop Off *Training/ Classes

15 135(m)/ 150(nm)

35

Services & Rates 1. Open Play- the dog owner can walk in the door and pay to play inside the facility. There is no time limit to play- $8 2. Open Play Packaged Membership*- broken down into 3 deal options (Play Passes) based on the number of times an owner can bring their dog, the number of guest passes allowed, and if there are any discounts applied to classes or daycare. o Mighty Min Pin: $35- 5 Play Passes to Park, 2 Guest Passes o Loving Lab: $60- 10 Play Passes to Park, 2 Guest Passes o The Great Dane: $125- Unlimited Play in Park for 60 days, 5 Guest passes, membership discount on classes and daycare *Average cost for the 3 options is approximately $75 as noted in the ‘Unlimited Open Play’ on PnL Projection Sheets. 3. Dog Daycare- members will drop their dog(s) off and pick them up daily** o Half Day- $16 o Full Day- $26 o 5 Day Pack- $120 o 10 Day Pack- $220 o 20 Day Pack- $420 4. Boarding- owners can drop their dog off for overnight stays ** o Flat rate- $36 o Dog Pick up/drop off at T.F. Green Airport-$12 ** Prices are based on Competitive Market Analysis of similar businesses within a 100 mile radius. 5. Classes & Training- dog owners can sign up for fun and interactive group sessions such as obedience training, agility classes, or breed meetups. o Agility Classes- cost depends on size of class and obstacles needed o Obedience Training- cost is subject to trainer’s fees 6. Well Being Seminars & Community Events- BOW chika WOW TOWN will host a variety of pet related seminars for members and the community at large. The business will promote the facility for business and community organization meetings, charity events, and family nights.