...Pet Food Shop Business Plan ' SWOT Analysis
Our intention of starting just one outlet of our pet in Almaty-Arbat is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open other outlets all across the Kazakhstan.
We are quite aware that there are several pet stores all over Almaty-Arbat and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.
Winslow employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Winslow;
Our location, the business model we will be operating on (brick and mortar pet stores and online pet store), varieties of payment options, wide range of pets, pet foods, pet supplies and pet related services and our excellent customer service culture will definitely count as a strong strength for Winslow So also, our management team members are people who have what it takes to grow a business from start ' up to profitability with a record time.
A major weakness that may count against us is the fact that we are a new pet store outlet in Almaty-Arbat and we don't have the financial capacity to compete with multi ' million dollars pet store outlets like PETCO Animal Supplies Inc., PetSmart Inc. and co when it comes to retailing at a rock bottom prices for all their products and services.
The fact that we are going to operate our pet stores opposite one of the largest residential estates with loads of pet owners in Almaty-Arbat provides us with unlimited opportunities to sell our pets, pet foods, pet supplies and related pet services to a large number of pet owners.
We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our pet store; we are well positioned to take on the opportunities that will come our way.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new pet store or supper market that retail same products like us in same location where ours is located. We are not ruling out the fact that unfavorable government policy can also pose a threat to our business.
Our Competitive Advantage
A close study of the pet stores industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiffer competition and we are well prepared to compete favorably with other bridal shops in Almaty-Arbat.
Winslow is launching a standard pet store that will indeed become the preferred choice for pet owners who resides in Almaty-Arbat. Our pet store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Almaty-Arbat. We have enough parking spaces that can accommodate well over 20 cars per time.
Our location, the business model we will be operating on (brick and mortar pet store and online pet store), varieties of payment options, wide range of pets such dogs, cats, fish and birds and pet foods and pet supplies, such as collars, leashes, health and beauty aids, shampoos, medication, toys, pet containers, dog kennels and cat furniture et al and our excellent customer service culture will definitely count as a competitive advantage for Winslow
In addition, our management team members are people who have what it takes to grow a business from start ' up to profitability within a record time.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups pet stores) in the pet stores industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
Pet Food Shop Business Plan ' SALES AND MARKETING STRATEGY
' Sources of Income
Winslow is in business to retail a wide range of pets such dogs, cats, fish and birds and pet foods and pet supplies, such as collars, leashes, health and beauty aids, shampoos, medication, toys, pet containers, dog kennels and cat furniture et al and offering pet related services to the residence of Almaty-Arbat.
We are in the pet stores industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives. We will generate income by;
' Retailing pets
' Retailing pet food and supplies
' Other pet related services, such as boarding, grooming and training.
One thing is certain when it comes to pet stores business, if your store is well stocked and centrally positioned in an environment with the right demographic composition, then you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Almaty-Arbat and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.
We have been able to critically examine the pet stores industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Almaty-Arbat.
Below are the sales projections for Winslow, it is based on the location of our business and other factors as it relates to pet stores start ' ups in the Kazakhstan;
' First Fiscal Year-: $120,000
' Second Fiscal Year-: $350,000
' Third Fiscal Year-: $750,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won't be any major economic meltdown and there won't be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
' Marketing Strategy and Sales Strategy
Before choosing a location for Winslow, we paid experts to undertake a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for pet owners who reside in Almaty-Arbat. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.
We hired experts who have good understanding of the pet stores industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Almaty-Arbat.
In other to continue to be in business and grow, we must continue to sell our wide range of pets such dogs, cats, fish and birds and pet foods and pet supplies, such as collars, leashes, health and beauty aids, shampoos, medication, toys, pet containers, dog kennels and cat furniture et al that are available in our store which is why we will go all out to empower or sales and marketing team to deliver.
In summary, Winslow will adopt the following sales and marketing approach to win customers over;
' Open our pet stores in a grand style with a party for all.
' Introduce our pet store business by sending introductory letters alongside our brochure to pet owners, pet grooming and boarding services companies, security companies who are into supply dogs as guards and other key stake holders in Almaty-Arbat
' Ensure that we have a wide range of pets such dogs, cats, fish and birds and pet foods and pet supplies, such as collars, leashes, health and beauty aids, shampoos, medication, toys, pet containers, dog kennels and cat furniture et al in our store at all times.
' Make use of attractive hand bills to create awareness and also to give direction to our pet store
' Position our signage / flexi banners at strategic places around Almaty
' Position our greeters to welcome and direct potential customers
' Create a loyalty plan that will enable us reward our regular customers
' Engage on road shows within our neighborhood to create awareness for our pet store.
Pet Food Shop Business Plan ' Publicity and Advertising Strategy
Despite the fact that our pet store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote Winslow
Winslow has a long term plan of opening outlets in various locations all around the Kazakhstan which is why we will deliberately build our brand to be well accepted in Almaty-Arbat before venturing out. As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand.
Here are the platforms we intend leveraging on to promote and advertise Winslow;
' Place adverts on community based newspapers, pet magazines, radio stations and TV stations.
' Encourage the use of word of mouth publicity from our loyal customers
' Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms to promote our business.
' Ensure that our we position our banners and billboards in strategic positions all around Almaty-Arbat
' Distribute our fliers and handbills in target areas in and around our neighborhood
' Contact corporate organizations, households, pet grooming and boarding services companies and other stakeholders by calling them up and informing them of Winslow and the products and services we sell
' Advertise Winslow business in our official website and employ strategies that will help us pull traffic to the site
' Brand all our official cars and vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.
Our Pricing Strategy
Pricing is one of the key factors that gives leverage to retailers and pet stores, it is normal for consumers to go to places (pet stores) where they can get a wide range of pets such dogs, cats, fish and birds and pet foods and pet supplies, such as collars, leashes, health and beauty aids, shampoos, medication, toys, pet containers, dog kennels and cat furniture et al and pet related services at affordable price which is why big players like PETCO Animal Supplies Inc., Pet Smart Inc. and co in the pet stores industry will continue to attract loads of consumers.
We know we don't have the capacity to compete with bigger and well ' established pet stores, but we will ensure that the prices of all the products that are available in our store and our services are competitive with what is obtainable amongst pet stores within our level.
' Payment Options
The payment policy adopted by Winslow is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the Kazakhstan.
Here are the payment options that Winslow will make available to her clients;
' Payment via bank transfer
' Payment with cash
' Payment via credit cards / Point of Sale Machines (POS Machines)
' Payment via online bank transfer
' Payment via check
' Payment via mobile money transfer
' Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our products and services.
' Start ' Up Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.
The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a pet store business; it might differ in other countries due to the value of their money.
This is the key areas where we will spend our start ' up capital;
' The total fee for registering the business in the Kazakhstan ' $750.
' Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) ' $3,300.
' Marketing promotion expenses for the grand opening of Winslow in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
' The total cost for hiring Consultant ' $2,500.
' The total cost for the purchase of insurance (general liability, workers' compensation and property casualty) coverage at a total premium ' $2,400.
' The cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
' The cost for shop remodeling (construction of racks and shelves) ' $20,000.
' Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
' Operational cost for the first 3 months (salaries of employees, payments of bills et al) ' $60,000
' The cost for start-up inventory (stocking with a wide range of pets such dogs, cats, fish and birds and pet foods and pet supplies, such as collars, leashes, health and beauty aids, shampoos, medication, toys, pet containers, dog kennels and cat furniture et al) ' $100,000
' The cost for store equipment (cash register, security, ventilation, signage) ' $13,750
' The cost of purchase and installation of CCTVs: $5,000
' The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
' The cost of launching a website: $600
' The cost for our opening party: $5,000
' Miscellaneous: $5,000
We would need an estimate of $350,000 to successfully set up our pet store in Almaty-Arbat. Please note that this amount includes the salaries of all the staff for the first month of operation.
Generating Funds / Startup Capital for Winslow
Winslow is a private business that is solely owned and financed by Simon Winston and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start ' up capital to 3 major sources.
These are the areas we intend generating our start ' up capital;
' Generate part of the start ' up capital from personal savings
' Source for soft loans from family members and friends
' Apply for loan from my Bank
N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
Pet Food Shop Business Plan ' Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won't be too long before the business close shop.
One of our major goals of starting Winslow is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to sell our pets, pet merchandize and pet services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Winslow will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company's corporate culture is designed to drive our business to greater heights and training and re ' training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List / Milestone
' Business Name Availability Check: Completed
' Business Registration: Completed
' Opening of Corporate Bank Accounts: Completed
' Securing Point of Sales (POS) Machines: Completed
' Opening Mobile Money Accounts: Completed
' Opening Online Payment Platforms: Completed
' Application and Obtaining Tax Payer's ID: In Progress
' Application for business license and permit: Completed
' Purchase of Insurance for the Business: Completed
' Leasing of facility and remodeling the shop: In Progress
' Conducting Feasibility Studies: Completed
' Generating capital from family members: Completed
' Applications for Loan from the bank: In Progress
' Writing of Business Plan: Completed
' Drafting of Employee's Handbook: Completed
' Drafting of Contract Documents and other relevant Legal Documents: In Progress
' Design of The Company's Logo: Completed
' Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
' Recruitment of employees: In Progress
' Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
' Creating Official Website for the Company: In Progress
' Creating Awareness for the business both online and around the community: In Progress
' Health and Safety and Fire Safety Arrangement (License): Secured
' Opening party / launching party planning: In Progress
' Compilation of our list of products that will be available in our store: Completed
' Establishing business relationship with vendors ' suppliers of pets and pet merchandize, wedding planners and other stake holders: In Progress
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