Business Plan: One Stop Pet Shop

Business Plan One Stop Pet Shop in Melbourne, Australia

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Business Plan: One Stop Pet Shop

1. Executive Summary
The basic aim of this business plan is to establish One Stop Pet Shop in Melbourne, Australia. The mission of Pet Shop is the one of business is to get recognizable market position by the best opportunity providing wide range of pets, pet products and services that contacts you at to customers. The business raised $ 55000 as a loan for your home. Passion to the development of Pet shop. Owner is also invested $ love with animals is 22000 in a business to strengthen the assets position of the key to run business. The most vital offerings of business include business. Make dogs, cats, birds, pet services and pet supplies like toys animals beautiful, take etc. Marketing goal is to attract customers through various strategies like promotion, advertising and care of them and freed website development. A financial goal is to enhance them for the health 15% sales till the completion of one year of business. In will enable us to pull Australia, there are lot of opportunities for pet business customers on our because Australian love pets. According to market shop, A Message research pet business can be a very profitable in from Owner of One Australia. There is a good market for pet business because it is profitable and having more business opportunities (powerhomebiz.com, 2011). Target market of One Stop Pet includes individuals, pet care professionals, design professional and government agencies. Business will segment the market on the basis of geographic, psychographic and demographics. Pet shop will provide products and services according to specific needs of this target market to get the desired response from them. Business will more emphasize on customers preferences and tastes to get more sustainable position pet shop will conduct research and development after completing the first year of business. The marketing plan of pet shop includes target market, pets, pet products, and pet services. Further, it includes market penetration pricing to attract the more customers in order to penetrate in the market. This strategy can better help the business to accomplish the business objective of sustainable market position. In relation to promotion, business will focus on advertising, sales promotion, personal selling, direct marketing, and website. Website will also use to place the products of business to attract the customers. Pet shop will comply with entire legal and licensing requirements of Australian government. Business will adopt simple structure which comprises on owner, two part time sales persons, admin staff and customer service. Website of the pet shop will be managed by outside consultants in this initial phase. Business will get the insurance policy for pets, business premises and for any threat or hazard. Pet shop will care about security issues of pets and other business premises in case of any problem with animals and or business. Owner will purchase animals and various pet products from different markets and place them at shop for resale purpose after making finishing and development in products and services. Business made good projections about sales forecast, profit and loss statement and cash flows. Sales, profit and cash shows in future business will run smoothly as depicted in financial statements. Initial and ending quarter sales forecast include $140000 and 203,666 respectively. Projected profit is also including $ 38000 and $47460. In business of pet shop it is projected that during the four quarters owner will not draw anything from business except salary as depicted in staffing plan. Pet shop will also legally bound for environmental impacts so business will make
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sure about any type of waste and other environment unfriendly hazard. For ecological sustainability pet shop will obey all the policies of NSESD. In future, pet shop has a plan to expand business activities in relation to marketing, R and D, finance and others on wider horizon. Further, it is recommended that pet shop should enhance its more sales and promotional actives in future to pursue more customers.

2. Background
2.1. Mission Statement
Mission is to become a recognizable leader through providing our customers with wide range of high quality Pet, pet supplies and pet grooming services at best price available. We invite you to shop and compare our prices with any other pet supply chain store, pet supply store, and mass market or grocery retailer. We serve our customers by hardworking to provide not only the best pet categories which include Cats, Dogs and Birds but also pet services and pet supplies like washing of pet, health and safety, toys and gifts etc. in one stop pet shop.

2.2. Business Goals

Our business goal is to attain a recognizable position in pets, pet products and services with a measureable market share(10%) by the end of first 12 months working, according to the design and development of:

Innovative and beneficial pet products and services Complementary pet products and accessories Socially and environmentally products Educating customers about various pet foods and diseases

Marketing objectives:

Within the target market to establish relationships with veterinarians To implement campaign with target market of company through the use of local newspaper advertisements, flyers and word of mouth. Increase online presence of pet shop after one year through producing a website and mentioning the contact information and name of company with online encyclopedias To start a advertising and public relations campaigns to increase sales and awareness

Financial Objectives:

Providing pet and pet care services to increasing 10% sales till first six months and 15% till the end of twelve months

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Business Plan: One Stop Pet Shop Our keys to success include:

Introduction of functional, innovative, beautiful, reliable pets and pet products deliver a competitive guarantee about products Delivery of exceptional customer service Participation in design and pet industry communities Help pet associations that rescue, train and promote regarding humane treatment of animals Using of profits for new product development Promote pet health and safety

3. Marketing
Marketing is the satisfaction of customer at some profit or creating the profitable relationship with customers. Today companies focus on more marketing efforts to satisfy their existing customers and find new customers in the target market. Most vital marketing activities of One Stop Pet Shop will include marketing research, market segmentation, targeting, and four Ps of marketing and continues evaluation of marketing activities for quality products and services. Four Ps of marketing are considered as controllable elements of marketing plan that can enable the business to get the desired response in the target market. Therefore, marketers are required to make better strategies for them (family-businessexperts.com, 2011).

3.1 Market research

Business will be started in Melbourne, Australia with a name of One Stop Pet Shop. It is widespread concept that Australian like the pets so there is lot of market opportunities. In Australia, companies in pets industry sell pets and pet products and services. The common pets comprises on cats, fish, dogs and rabbits. Pet stores offer wide range of accessories and products which including collars, pet food, kennels and litter boxes. The services of pet businesses include veterinary to insurance and grooming services. In the recent years Australian society has been tremendous changed but the Australians value and place for their pets remain constant. Australians are pet lovers and 63 percent of households having a one pet in their house. Further size of Australian pet market includes the following facts and figures according to the 2006 survey of National people and pets (National People and pets Survey, 2006):

In Australia, there are lots of opportunities for Pet Business because Australian

Twelve million Individuals in Austria are associated with pets.

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From 7.5 million households, 63% have own pets Australia in the world, having the highest occurrences of pet ownership 91 percent of pet owners remain close with their pets and considered them as family unit For more than 83 percent of Australians, pets were considered as normal childhoods part Those Australian who do not presently own a pet, 53 percent from which would like to own in future

Further, according to the Australian Institute, Australian with a 2.3 million cats, 3.6 million dogs, 13.2 million fish and 7.5 million birds share their homes (Denniss, 2004). In Australia, fish and birds are more in number as compared to cats and dogs due to people have their own birds and fish. Therefore, dogs are available in highest quantity in Australian homes (Petnet.com.au, 2011) In the light of above facts and figure about market size, Melbourne is good location for this business because overall Australian likes pets. According to the ABC census of population and housing from 1976 to 1996, the population statistics of major cities are depicted in figure below (Dwyer, 2009). Market research contributes greatly to understand the consumer behaviors (mrsa.com.au, 2011). Therefore, in the light of this finding business of pet shop learned that in the future pet shop will greatly focus on research and development about marketing activities.

Population Statistics from 1976 to 1996

3.2 Market segmentation

It is the identification of market portions that are unique from one another. Target market is the choosing of market segment to appeal for products and services (Coutler and Armstrong, 2005). Segmentation enables the company to better meet the needs and wants of potential customers. Business of One Stop Pet Shop targets the segments which include:
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Geographic Segmentation: Target segment based on metropolitan area of Melbourne and broader community. This type of segmentation will target the customers on the basis of size or density, region and climate. Demographic segmentation: Target segment include families with children, single adults and married couples, above and middle income groups, entire levels of education from entire social groups with ethnic backgrounds. Further, age/generation, gender, occupation and religion criteria will be used to target a demographic segment. Psychographic segmentation: Pet owners who are crazy about the health of their pets further want safety for their pets. This segmentation will target to various social classes, their life styles and personalities. Segmentation uses to better comprehend the market, find the needs of specific customers, it help for the selection of best media, support to identify requirements of repositioning, input the process of new product and identify opportunities or gapes in the market (scribd.com, 2011). To better support this segmentation strategy, my business will attend various industry related trade shows and enter in competitions. This strategy will enables the business of One Stop Pet Shop to establish partnership with organizations and people that can support the business in establishing the highest level of customer services and product performance. Good segmentation and targeting can help the company to position the product in the mind of customers (Coutler and Armstrong, 2005). Business of Pet Shop will create differentiation on the basis of unique pets, products, marketing channels, services and people. Market segmentation provides various disaggregating markets to improve profitability with lake of sales resources and investment (Nelson, 2010). Segmentation will enable the pet shop business to get more benefits through more accurate and effective communication to customers in relation to their needs. Market segmentation helps to identify the various growth opportunities for the business (Nelson, 2010). Therefore, business of pet shop will get help from market segmentation to attract its target market. Instead of introducing traditional marketing mixes to consumers, market segmentation will help the pet shop to mold marketing mix program that is more suitable for target market.

3.3 Marketing plan

A marketing plan provides detail to reader how the business plan attract, retain and educate customers. Advertising or attracting customers include information how the target market will be learnt regarding the product (Harmozi, Sutton, McMinn, and Luceo, 2002). Marketing plan identify important targets and objectives that must successfully coordinate the various elements and their marketing mixs variables (Coomasaru, Day, and Lee, 1996). Business will use various marketing strategies that will enable One Stop Pet Shop to easily target women, men, pet care professionals, government agencies and design professionals within the target market. Marketing plan of One Stop Pet Shop include four Ps which are depicted below.

3.3.1 Products/services and target market

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Business will start to offer products and services after doing reach on target market which will help the business to understand the preferences and tastes of Australian customers. The One Stop Pet Shop will have three primary streams of revenue.
1. The first source of revenue will come from the sale of live animals which includes cats,

birds and dogs. Company will provide complete package of pets to customers. The company will obey entire Australian government laws about live animal sales while simultaneously ensuring the human handling and safety of pets. 2. The secondary source of revenue will be based on pet services like day care, overnight care, washing of pets, care services at customers door step, classes for behavior of animal and their training, grooming of pet and special event planning. 3. The third revenue stream based on sale of portrait and photography of pets, accessory and gift shop. Pet shop will provide quality services and products to the pet lovers. The pets include cats, birds and dogs. Entire products and services will be tailored according to the needs and demands of the customers. Today in the era of competition, it is necessary for every organization to better understand the linking and disking of its potential customers. Further, pet shop business will introduce innovative and unique products and services to Australian customers to better satisfy them. It has been found that loyal and satisfy customers are heavy users of organizational products. Therefore, organization should care about this strategy (Coutler and Armstrong, 2005). Target market: It includes individual customers, pet care professionals, Government agencies and design professionals. Design professionals can recommend tailored solutions of products to existing pet owners. Pet Care professionals can assure, inform and influence owners of pet about health benefits of products for their pets. Government agencies like police and fire departments can also use pets like dogs to find criminals and to visit any other place for precautionary measures. Lastly, individuals are heavy users of pets in Australia as depicted in market research portion. Individuals may include families with children, single adults, married couples, entire education levels and social groups with ethnic backgrounds. Therefore, I have selected this target market to establish brand credibility, product reliability, and brand recognition. Products and services have great importance for target and test marketing (go4funding.com, 2011). Figure below shows various products of pets.

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Business Plan: One Stop Pet Shop

3.3.2 Placement
Marketing placement include set of independent bodies involves in making a product available or use for customers (Coutler and Armstrong, 2005). Placement of pet shop will also involve all activities to make available the products from business unit to final customers. Business also finds good attractive place for pet shop in Melbourne and shelf the products in prominent places of shop. Further, placement will also make in relation to competitors. Firstly company will focus on direct marketing channels to provide the product to customers. Further, internet facilities will be used to place the products on a companys website. Website will help the company to provide every type of information to customers and give them access to place orders. Company will provide products according to their online orders. Website will contain location of company, its inventory and products, and contact information. Today it is the good cost effective placement tool for many companies. It is easy for customers to place order from their homes and get delivery. On the other hand, it will also beneficial and advance method for company to make available the products or services to its potential customers. In the era of globalization, to cope with competition organization are focusing on placement and giving importance to it as good promotional activity. A good placement of product leads to good promotion of product. Therefore, marketing staff will place the products in the prominent place of premises to better attract the customers.

3.3.3 Promotions and advertising

Promotion is unselfishly persuasion of customers. In this marketing plan business of one stop pet shop will use various promotional tools to get the desired results from target market. Business will use personal selling, mass marketing, direct mailing techniques, various types of advertising, relationship marketing, public relations and many other marketing tools to promote its products and services.
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Firstly company will use post cards to the advertisement of its products and services. In this context, company will find the addresses of entire persons within the radius of 5-mile around pet shop. Next, post card will be composed to announcing the companys presence to them. This will help the company to provide awareness to neighbors about the existence of company. It will also help to develop community relations which will be very beneficial to the business of One Stop Pet Shop. People try to buy animal food items or other services from near to their homes so our business will maximum try to introduce with neighbors and let them to know where our business is! The business will also use most vital promotional tool called advertisement to promote or communicate the products or services to pet customers. In advertising campaign, business will use Radio, Television, Print Ads, and Direct mail Outdoor Advertising. In addition, in external and internal communication business will use newsletters, newspapers, e-mail (electronic media), relationship marketing and public relations. Public relations will include community oriented programs and events sponsorship, partnerships. It is necessary that message should creative in entire types of advertisements to get desired response. Company can put stickers on various waiting room magazines (psprint.com, 2011). Moreover, on search engines company will place traditional print ads and advertisements. The business of pet shop will also use internet base strategy. Preliminary searches on internet will help the many people to know about pet products and services. In this way potential customers can easily find the business and get their desired product. In addition, email marketing will be the good source of mass marketing for pet shop. In this process, customers sign up on website. Company can get email address of customers and send them emails about special products and new offerings. The main advantage of this method is that it will be free and company will not have to pay any amount like postage etc. The URL of website will be www.onestoppetshop.com.au. Website will work to attract mass market. It will be the good tool for the business of pet shop. By using website customer can place their orders and post their queries so that organization will easily satisfy them accordingly. Therefore, in last it is stated that business of pet shop will try to utilize maximum tools of promotion to get the desired response in the target market.

3.3.4 Pricing policy

The objectives of pricing are to get survival, current profit maximization, market share leadership and product quality leadership (Coutler and Armstrong, 2005). Business of Pet Shop will determine prices on the basis of cost of operations or manufacturing and according to the bearing capacity of the market. In short, initially business will apply or use market penetration pricing strategy. This strategy will help the company to accomplish the desired goal of 10% market share by the end of twelve months. According to this strategy business will charge low price for pets, pet products and services in order to penetrate in the market. Strategy will also help to attract new customers to opening the Pet Shop for longer hours. Further, prices will be charged on the basis on the basis psychographic and geographically according to the target market. In community areas company will use Zone Pricing strategy and offering same prices to within zone customers but it will exceptional in case of some services. Many factors would be affected on pricing policy of company like competition. In response to competition, market penetration strategy and Innovation in companys offerings will help the company to cope with competition. Therefore, innovation and uniqueness in offerings, processes, customer dealings
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and other methods of company will also enable the business to remove the effect of various internal and external factors. Price is a good tool that enables the organization to compete in the market. Today many companies are getting competitive advantage on the basis offering comparative prices to their customers (Coutler and Armstrong, 2005).

3. 4 Evaluation of marketing
Market research will help the business to identify new pets customers, comprehend customer satisfactions, determine new product offerings and help to conduct a SWOT. Marketing activities will be evaluated on the basis of various success measures like marketing objectives. For example, to increase 10 % markets share. Further, success measures include completion of action dates, results, accomplishment of strategies and goals, new or repeat customers, average size of contracts, win rate on sales and revenue. These are the most vital success measure for One Stop Pet Shop that will enable the company to evaluate the performance of marketing. Further, outcomes of sales forecast and projected income statement will also be used to evaluate the marketing department. As the increases challenges to marketing department of company, CEO must regularly make sure that marketing department should have a strong leader who direct and coordinate with well-organized team (Kotler, 2004). Business of pet shop will also try to cope with various issues and challenges to make the performance of marketing department. Factors that influences on marketing and distorts its performance include technological, economic, environmental, Australian country rules and regulation and political factors (Coutler and Armstrong, 2005).

4 Operations
Business of Pet Shop based on trading operations. Most pets and products will be purchased through suppliers and then after making furnishing actions sell them to potential customers. Further, business will make sure licensing and legal requirements, simple organizational structure and staff selection, required equipment, business premises, and security and insurance issues. The detail of entire operational considerations is depicted below.

4.1 Legal and licensing requirements

To start a sale of animals requires license from local authority of Australia. Local authority of Melbourne will inspect the premises for suitability before granting a license. The business of One Stop Pet Shop will arrange all premises according to the requirements of the licensing authority. In Australia, three legal business structures are available which include sole proprietorship, partnership and Joint Stock Company (Schaper and Volery, 2011). In Australia, 38 percent of total businesses comprises on sole proprietorship. Partnership comprises on 15 percent and Trust is 18 percent while part of registered limited companies comprises on 26 percent of total businesses. Remaining 3 percent part comprises on other businesses (Australian Bureau of Statistics, 2007). According to these structures sole proprietorship business is most suitable for pet shop. In Australia, the entire operation of pet shop is registered according to the 1951 Act of Pet Animals. This act protects the sold pets so in relation to this business of pet
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shop will license from local government. In Melbourne, local authorities are responsible to implement various animal related laws in the area. Further, authority has a right to take action if pet shop keeping pets in inadequate conditions. Moreover in Australia, according to animal Act 2006, persons will be responsible for welfare and care of animals those have main responsibility for animals whether temporary or a permanent (pictures-of-cats.org, 2011).

4.2 Organizational structure and staffing

Business of One Stop Pet Shop will be used flat organizational with fewer levels of management. Owner will be the main person in this business. An organizational structure refers to formal layout of jobs within the organization (Robbins and Coulter, 2007). Business of pet shop will design its structure to coordinate its diverse tasks. According to structure owner will easily handle entire staff and other activities. The chart of One Stop Pet Shop is depicted below.

Initially, the business of pet shop will have 2 full time employees, the owner (will perform the work of senior management, operational and administrative head), and office / Inventory Management will be responsible for accounting, administrative and customer services activities. All employees will also be responsible for demonstrating the companys products and services to the target market. When the sales begin to climb, company will hire one part time sales representative to take over office management, inventory and other sales activities. In 3rd or 4th quarter company will also have a plan to hire a more sales persons to enhance the business nationally. The staffing plan of One Stop Pet Shop is as under. Staffing Plan Owner Sales Representative (Part Time) Inventory/Office Management/Customer Service Total Staff Total Salary Q1 Q2 Q3 $15,000 $15,000 $18,000 0 $8,000 $8,000 $9,000 $9,000 $9,900 2 $3 $3 $24,000 $32,000 $35,900 Q4 $18,000 $17,600 $9,900 $4 $45,500

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4.3 Insurance and security issues

After the start of business insurance will be required. Owner will contact insurer and elucidate about the operations of business. The pet insurance policy should cover followings: Theft of animals, stock, premises contents Breakdown of filtration and heating equipment Any damage to building Loss related to profits Legal expenses, costs and damages in case of employee injury Legal damages, expenses and costs in case of members/customer of the general public is injured or their property is stolen/damaged within the business premises Further, business will also consider extras policies such as theft by employees All these issues created security issues and problems. Insurance has an ability to cover all these issues and damages in an appropriate manner or according to policy. Therefore, One Stop Pet Shop business will also adopt insurance policy.

4.4 Business premises

One Stop Pet Shop will take effective actions to prevent and control the infestation of premises and animals with external vermin and parasites. The burning of any bedding or debris and excreta on the premises will be prohibited. The Business of One Stop Pet Shop required following premises: Land, covered portions and cages for animals. Towels, nest boxes and beddings to ensure the conformability of animals. Wash area is also required on the premises Animal display portion should have sufficient and proper ventilation in order to kept clean and fresh air at all times Exercise area for animals Where house for feeds, products etc. Further, any other will be required for the safety and health of animals The premises of pet shop must be capable to be secured in every aspect in relation to animals (Burton, 2008).

4.5 Equipment required

The business required equipment for proper disposal or storage of waste material to control insects, obnoxious odors and vermin. Further, pet grooming equipment, cages, dog training equipment, dog beds , pet toys, vet equipment, office equipment includes computer, printer, shelves, fire retardants etc. business will focus on innovative equipment of office interiors to attract the customers. To buy the needed equipment and items for pet store is necessary for business. Owner should find supplies from wholesalers. In this way business can get better and cheap equipment for pet shop (Crowe, 2011). Further, special equipment for pets that pet shop will purchase include pet tube, pet tube with Ramp, Petlift Bathing Stations, Dog Dryers, Dog

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Scissors/Shears, Andis Clippers and Accessories, electric and Hydraulic tables, Cage Banks, Cats and Dog Cages, Stools and Condos.

4.6 Production process

The production process of pets, pet products and pet services is as under: Pets and pet products like toys will be purchased from suppliers and after making sufficient arrangements sell them to customers But maximum animals will be born on their cages also. With the passage of time after their grooming and good age, they will also display for sale. Therefore, for animals not only organic production process but also purchased from suppliers. Pet services will be provided by the business within the premises of business or at the home of pet owner Further, orders can be taken on phone calls and will deliver according to the requirements of customers Pet food and other supplies will also be purchased from suppliers for further action Other necessary raw material and finished will also got from suppliers

4.7 Critical risks/contingency plans

In this business risk may involve biological, physical or chemical for washing of pets. Further, theft and damage of property, premises, building, equipment, animals and other accessories are also considered as critical risks for pet shop in Australia. Moreover, damage during delivery, production process and at the time of purchasing raw material. The One Stop Pet Shop will cover maximum risks through insurance policy. In addition, precautionary and safety measured will also be taken to tackle various issues and risks. Emergency plan include ambulance services, emergency rescue contact numbers and contact with police station in case of robbery or theft. Equipment related to fire-fighting will be readily available and trained staff with practiced in its proper use. Business will be careful about some fire retardants that may be toxic for animals. Entire staff should be aware risk associated with the transfer of infectious microbial contamination and diseases when cleaning enclosures, handling animals and practices that can reduce these types of risks (Burton, 2008).

5 Financial projections
Financial statements are essential part for the success of any small or new business. The principle objective of income statement is to find the profit or loss position of enterprise. Balance sheet tells the financial position of enterprise in the shape of assets, liabilities and owners equity. Cash flow statement shows the capacity of entrepreneur to manage the flow of cash (Harmozi, Sutton, McMinn, and Luceo, 2002). Business expects that sales growth will steadily enhance and cash flows will also increases steadily. Initially business conduct capital expenditure forecast, sales forecast, projected profit and loss account and projected cash flow statement. Finance is the

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strength of every business so manager should make investment, financial and assets management decisions with great concern (Horne, 2004).

5.1 Capital expenditure forecast

In capital expenditures business started with $ 35000 expenses to fund, taking $55000 as a loan and owner will be invested $ 22000 as investment.

Initial Funding Detail Beginning Expenses to fund Beginning Assets to Fund Total Required Funding Assets Break Up: Non-cash Assets Cash Additional Cash Starting Cash Balance Total Assets Capital and Liabilities Liabilities: Current Loan Long Term debt Account Payable Other Liabilities Total Liabilities Capital Investment Owners capital Total Investment/Capital Start Up Loss (startup expenses) Total Capital Total Liabilities and Capital Total funding Amount( $) 35000 42000 77000 2000 40000 0 40000 42000

55000 0 0 0 55000 0 22000 22000 (35000) 13000 42000 77000

The breakup of expenditure is depicted in next page.

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Expenses Break Up Expenses Animals and Products Prototyping and other testing Working Capital Fees: Licensing, Legal ,Insurance Website Design Marketing and Advertising Budget Office Equipment and Interiors Software Miscellaneous and Unforeseen costs and Purchases Rent Total Initial Expenses

Amount( $) 6000 5000 12000 2000 1000 4000 2000 500 1000 1500 35000

5.2 Sales forecast

In first, period $ 70000 sales forecasted according to the trends of competition and market. In second it increased 10% and then 3rd and 4th quarter it also increases 15% as the basic financial purpose of the business. Overall sale is projected to improve tremendously once the business is developed. Owner is expected strong ratio of growth from beginning operations as depicted in below projected sales. The table of sales forecast shows steadily increase in forecasts during entire four quarters. In marketing, sales have greater value because sellers are responsible to unselfishly pursue the customers (Coutler and Armstrong, 2005).During all periods of sales pet shop will focus on entire target market to get the desired response. It is expected that sales may fluctuate seasonally for pet care and design due to the budgetary changes of government agencies. Sales Forecasts Periods Q1 Q2 Q3 Q4 Pets 70,000 77,000 88550 101,833 Pet Products 30,000 33,000 37,950 43,643 Pet Services 40,000 44,000 50,600 58,190 Total Sales 140,000 154,000 177100 203,666

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In depicted diagram, most of sales revenue will be generated from live animals then pet services and pet products subsequently. It shows that the primary target area of business will be to sell live animals.

5.3 Cash flow forecast

The projected cash flow statement of One Stop Pet Shop shows various inflows and outflows of cash. It shows the movement of cash in various periods. It is assumed that as sales forecast cash flow will also increases. Below depicted cash flow shows projection from January 2012 to December 2012. Projected Cash Flow Cash Inflows Cash from operations cash from receivable Operating Cash Inflow Other Cash Inflows Equity Investment Borrowing Sales of Business Assets Increases of A/P Total Other Cash Inflows Total Cash inflows from operations and others

Q1 14000 0 0 140,00 0

Q2 154000 0 154,00 0

Q3 177100 0 177,10 0

Q4 20366 6 0 203,66 6

22000 55000 0 0 77000 217,00 0

0 0 0 0 0 154000

0 0 0 0 0 177100

0 0 0 0 0 203666

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Cash Outflows A/P Decreases A/R increases Asset Purchase Payroll Sales and Marketing and other Expenses Insurance Web site management Business travel Utilities Miscellaneous Total Cash Outflows Net Cash flow Cash Balance

0 0 0 24000 2500 0 1000 1500 1500 1500 32000 249,00 0 249,00 0

0 0 0 32000 2500 0 1000 1500 1500 1500 40000 194000 194000

0 0 0 35900 2500 0 1000 1500 1500 1500 43900 221000 221000

0 0 0 45500 3000 240 1000 2000 1500 1500 54740 258406 258406

5.4 Projected profit and loss statement

Business of pet shop will work at a profit from first quarter to last as the sales forecast. It is projected that business will get more profit in first quarters then will focus on long term sustainability. To get the market sustainability is the objective of every business. The basic purpose of every business is to get and enhance profitability position of the business (Horne, 2004). Business of pet shop also has a vital objective to get recognizable market position. This strategy will help the business to compete with other players in Melbourne. After one year, to maintain and gain more sustainable position business will invest in research and development after getting the initial response from target market. Business of pet shop has projected a good profit margin from first to end quarter of business. The projected profit and loss of One Stop Pet Shop is depicted in next page. Projected Profit and Loss Statement Periods Sales Cost of Goods Sold Gross Margin

Q1 140000 70000 70000

Q2 15400 0 69300 84700

Q3 Q4 17710 203666 0 79695 81466 97405 122200

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Operating Expenses Payroll Sales and Marketing and other Expenses Insurance Web site management Business travel Utilities Miscellaneous

In dollars In dollars In dollars In dollars 24000 2500 0 1000 1500 1500 1500 32000 2500 0 1000 1500 1500 1500 35900 2500 0 1000 1500 1500 1500 45500 3000 240 1000 2000 1500 1500

Total Operating Expenses Net Profit Profit Margin

32000 38000 27%

40000 44700 29%

43900 53505 33%

54740 67460 33.12%

5.5 Owner's personal expenses

In business, personal expenses of owner are referred to drawings. If owner withdraw cash or taken away equipment to its home from business, it is called drawing in accounting. But in the business of pet shop it is planned and projected that during the four quarters owner will not draw anything from business except salary as depicted in staffing plan. Further, with respect to owners personal expenses will be started after one year or completion of these four quarters of initial business plan. In the business owner has more importance but his business will be started with $55000 loans so owner has decided that he will not draw any amount or thing from business during the first year. Therefore, after the completion of these four quarters the plan will be reviewed according to the policy of owners personal expenses.

6.0 Environmental responsibility

Various changes in external environment of business called for pet market to establish a new marketing strategy. Market of pet performed quantitative research and conducted a SWOT to identify opportunistic areas. These results help the business with related to three strategic changes which comprises on elimination of large breed dog inventory ( only sell small dogs), development of new products like pet gifts, and addition of delivery services. Business of pet shop has implemented these environmental changes. Further, business make a plan to keep the environment clean that will be beneficial for pets as well as for customers. Pet shop will prevent to any pet escaping from the premises. One Stop Pet Shop is committed to protect the environment from any type of hazard or loss.
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The products and offerings of business will not provide any type of harm to customers. In addition, business will act to prevent from the losses of natural resources and biodiversity. Business will also reduce its waste through various waste management techniques. Business will emphasis on proper washing the animals, take care for their health and other safety precautions. Caged of animals must be maintained at humidity levels and temperatures that diminish distress. Temperature of room must be minimum 30 degree Celsius and not fall below 15. Entire waste products like bedding, faeces, dead animals, food wastes should dispose of hygienically and promptly, and according to local government authoritys requirements (Burton, 2008). Business of pet shop will be legally bound for environmental impacts so that One Stop Pet Shop will make sure about any type of waste and other environment unfriendly hazard. Doing business according to the requirements of environment bring many benefits for business. Business of Pet will act in an environmentally and socially responsible way to perform the business activities. Business thinks that in the way environmental responsible business can help the Pet Shop to get success in the long term. In Australia, national retail association directed to educating various retailers on the economic and environmental advantages of enhanced environmental performance. It is the liability of every organization to make strategies that enable them to more environmental responsible (nra.net.au, 2011).

7.0 Eco-sustainability
One Stop Pet Shop will be committed to implement ecological sustainable practices in the business. In Australia, changes have been occurred with respect to political, social and economic way of life and its behavior toward the environment. In Australia, government has made National Strategy on Ecological Sustainable Development to cope with these issues. Business of pet shop will follow all the consideration of this government authority. NSESD sanctions polices attempt to integrate environmental and economic goals, activities and policies, ensure valuable environmental assets of Australia, provide equity between and within generations, address various environmental risk problems and identification of global view of ecological sustainability development (skwirk.com.au, 2011). Therefore, business of pet shop will obey all the policies of NSESD. According to the 516A section of 1999 Act for Environment Biodiversity and Protection Conservation ( EPBC Act), commonwealth businesses have a constitutional requirements to obey their environmental performance and how they consistent with and due the (ESD)ecological sustainable developments principles (environment.gov.au, 2011). Pet shop will get the more benefits to make its business according to the government constitutions of ESD. Government of Australia has made many strategies to educate for sustainable environmental future which include resource management, physical surroundings, partnership and networks (Department of Environment and Heritage, 2005).

8.0 Implementation Timetable

This implementation timetable of Pet shop prepared on the basis of six months activities before and after the start of business. Each activity has a specific start and end date.

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Implementation Time Table Business License Building and renovation Recruitment Training of Employees Marketing and Advertising Equipment purchase Completion of Website Development Branding Beginning of Operations Sales promotions Sales feedback Financial statements of 1st Q Start date 1/9/2011 1/9/2011 15/9/2011 1/11/2011 1/9/2011 15/9/2011 1/10/2011 11/1/2012 1/1/2012 01/1/212 1/1/2012 31/03/2012 End date 30/9/2011 30/10/2011 15/10/2011 15/11/2011 31/03/2012 15/10/2011 30/10/2011 30/11/2011 1/1/2012 31/3/2012 31/03/2012 31/03/2012

9.0 Conclusions and future directions

The One Stop Pet Shop will start its business with initial funding of $77000 which is comprises of $35000 initial expenditures. Business has projected good sales forecast, profit and cash inflow. Various marketing, operational and financial strategies will help the business of pet shop to accomplish objectives. It is proposed that till the end of first year business will complete entire projections and then starts to run smoothly. Company website is a good tool to attract and deal customers. All these strategies will help the business to compete with other players and get long term sustainability. The projected financial results of all quarters are favorable for business if they would be completed accordingly. Great efforts and enthusiasm of motivated staff are required to achieve these purposes. Further, business has made various actions about legal, environmental responsibilities, ecological sustainability, licensing and other vital requirements of business. Once the business of pet shop reaches an adequate profitability level and enhances a cash reserve, it has a plan to invest portion of profit on R & D of existing products and operational improvements, new products, and expand sales and marketing efforts on extensive level. Further, after one year some percentage of profit will also spend on low risk financial instruments to strengthen the financial system of business. If the business does not earn a profit pet shop will be sought to finance R and D activities. Further, after the completion of four quarters business will be financed on employee bonuses, financial instruments and charitable giving activities. Business should make every effort to recover escaped animals. Disinfection and cleaning chemicals should be selected on the basis of their safety, suitability and effectiveness. All these products should be utilized according to instructions of manufacturers (Burton, 2008). Further,
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after one year 10% profits should be used to provide bonuses to employees. More efforts and budget will be used after one year for research and development activities. Therefore, business should strengthen its competitive strategies and introduce more innovative pets and products to customers; it would help the business to attain sustainable market position. Moreover, in the era of globalization sophisticated technology has more value to better cope with competition. In relation to technology pet shop will introduce more technological equipment for pet care and services. This strategy will also help the organization to get sustainability in the market through innovation.

Assignment-2 MKT3006