This report goal is to create a business model and plan for a Pet Café that would be located in Colombo district, Sri Lanka. The name of the café will be ‘Maya’s heaven’ .My proposed pet café would have two menus, one for the pet and another one for the human. The main objective of the business s to provide a secure haven to dog owners who may wish to spend some quality time outside their homes with their furry friends and in turn provide a socialistic space for pets as well.
There will be full-time vet in case a pet get sick, there will be also a private dining rooms to accommodate unfriendly. (Lysaght & Krupa, 2011).
I started the process of idea development by analysing the existing theories which are related to Pet benefits and issues related to Pet in Sri Lanka. According to my research I found out that most of the dog owners are after the best experience with their pets and they are treat them like members of the family.
Some clients are sensitive when it comes to pricing, they are driven by how much they will have to pay than the services they get. My team and I will emphasize the benefits of selling on value and just selling. It will be very crucial for my company to segment clients in groups by different ways they choose saving their cash.
Similarly some clients are motivated the value of product or services and such customers do not care much on the price. So it will be very important to consider the needs of different customers.
Sri Lanka has large dog population and most of the dogs are owned by members of the family. The Pet owners are currently facing a challenge because there is no bet cafe in the country, most of the existing cafes does not allow pets to be brought inside the café.
My proposed Pet Café will primarily have two positioning types: convenient and cheap positioning for catering services for pet and humans. We will try our best to entice customers who will be willing to pay extra amount of money, to the services in what institutes cross-selling strategy. The key benefit of this strategy is that it would be easy to provide extra services clients who already exist than to have new customers. Moreover if the clients are impressed with the new services they will definitely be loyal to the café.
Customers who would be using Pet services for the emergencies would be positioned in their mind to be cheap, moreover during the holidays customers would be willing to pay more for extra pet services, in this case the pet services will convenient and personalised. The organization do what it takes to be always convenient for the customers.
When it comes to placement or the distribution of service, there are some thing that I will consider. The first this will be how the clients will be able to reach the Pet café to demand the services, and the second thing to be considered will be the area in which the business will be operated.
When it comes to the channel for distribution our target customers will reach us, one of the channel that my business would use will be through the café website. The website will enable the patrons to book venues and reserve tables for all kinds of pet activities for instance pet birthdays. The clients will also self-booking services. The technology will enable our clients to contact us directly. Our clients will also be able to contact us via email Facebook and phone calls.
The main booking of venues and table reservation will be conducted via the website but it would be crucial for us to have a phone number, we would offer personalised service so we should always be reachable to our customers at all time. Talking to the clients over the phone ill enable the company to develop trust the customers.
The issue of location, the café will be located in Colombo district, Sri Lanka. In case our business will be profitable of which I think will be, we will expand our sitter service in Mount Lavinia and Battaramula both in Colombo district. I consider this place appropriate by considering factors such as the level of competition, target population and the purchasing power of customers.
I will try the best I can to constantly maintain a customized services for our clients in order to extend the life time of our customers and capture the market share. I will always listen to the customers’ needs and always be available to offer quick and urgent services. The channels that will be used to maintain good relationship with the customers will include: App store, Website, emails and phone calls (Ross, 2017).
My business idea will generate revenue in two ways. I will charge clients per hour for spending their time in the café with the Pets and charging the customers for the food and beverages they consume at the café.
The key resources that would be required for the business would be: the human assets, intellectual assets and the physical assets in order for the company to run smoothly. These include:
The proposed Pet café will have many co-operative partners, nut the main partners would be:
Start-up cost
The total capital required is estimated to be Rs 150,000
|
Legal |
1,000 |
|
Stationary |
500 |
|
Rental |
50,000 |
|
brochures |
500 |
|
insurance |
1,745 |
|
Licenses/tax/deposits |
5,000 |
|
equipment |
36,300 |
|
Employees/ payroll |
16,834 |
|
Accounting |
1000 |
|
Advertising |
2,000 |
|
supplies |
5,000 |
|
Msc. Expenses |
4,260 |
|
Total start-up expense |
RS 124, 439 |
Fixed expenses
|
Rent |
50,000 |
|
5,000 |
|
|
1,200 |
|
|
1,748 |
|
|
5,000 |
|
|
2,000 |
|
|
Total fixed expenses |
Rs 64,945 |
Variable expenses
|
Salaries /wages |
13000 |
|
Payroll expenses |
2860 |
|
Legal / accounting |
2000 |
|
Supplies |
5000 |
|
Subscriptions |
1000 |
|
Repairs and maintenance |
2200 |
|
Outside services |
1000 |
|
miscellaneous |
2260 |
|
Total varaiable cost |
31320 |
|
2019 |
2020 |
2021 |
|
|
Sales |
563 760 |
676 512 |
879 465 |
|
Total units |
43.200 |
51 540 |
67 392 |
Forecast for unit sell
|
Year 1 |
Year 2 |
Year 3 |
|
Human food 200 |
250 |
300 |
|
Pet food 150 |
180 |
250 |
|
Total units 350 |
430 |
550 |
|
Total units 1100 units |
Value of the total sale
The value of the total sale for the first year of operation will be 43, 200, the second year will be 59,000 and the third year will be 63,000
Profit and loss
|
Sales |
863 760 |
676 512 |
879 465 |
|
Variable expenses |
75,840 |
451 008 |
541 209 |
|
Gross margin |
187, 920 |
225 504 |
338 255 |
|
Fixed cost |
64 945 |
64 945 |
64 945 |
|
Net profit |
122 975 |
160 559 |
273 310 |
Asia has been the most popular continent with Pet cafes, the business has spread globally. Now there are few Pet Cafes in Sri Lanka.
The business café is going to offer a place where people will relax with friends or relatives and enjoy a meal or beverages. The café will also help the Pet they guard available for an adoption.
This are the kind of activities that would happened at the Cafe during a typical working days
Target market
My proposed Maya’s café will target both high and medium level income earners in Sri Lank. There is currently high demand of pet café in Sri Lanka due to rise of Asian Pet cafes, this is creating a lucrative market in the country. The high demand pets in the market currently is because of the associated advantages of having a pet. The benefits are as follows
Pet act as partners or playmates and they give affection, protection and companionship. They place an important role in each and every stage of development of human, for instance, in the issue of adults they give a reason for to contact with other people like dog walking. My target market of Pet café business are the people who love pets. Pet lovers may appear in a many reasons including:
Advantages and disadvantages
In order to examine the presence of competition, it is important to consider other options that may be readily available for the clients. If for instance someone may prefer to feed his pet at home and have good time with the pet than going in to the café. Other people might decide to take out their pet to veterinaries who would guard and offer the same services to the pet.
The following are the options that can be taken by the bet owner instead of using the services of the Pet Café:
This is the less costly option and the owner of the pet have confidence that the pet will be well taken care of, the only challenge is that it is not easy to find someone who will be taking care of the bet at a given time and the dog might also suffer psychologically because it will be in unusual environment.
Direct competition
My business idea is closely for pet café may be substituted by Pet Sitters and Pet Walkers companies that are already existing in Sri Lanka, since we will be offering nearly same service. In this case we will develop strategies to enable us compete favourably with the competitors (Rattanasilpkalcharn, 2016).
Our day to day operations of the Pet Café include the concentration in providing our clients with the best services and also the fun atmosphere for friends and relatives.
We will understand that the main aim of our business will be to provide Pet service for our client to have a good time, and we will always remain focused in utilizing the resources the resources available in order to provide clients with the best services (Niijima, 2016).
In regards to threats and opportunities it is pertinent to remark that they are external issues that would affect the company. In this case I will discuss strengths and weakness and opportunities for my proposed Pet Café which has not been initiated yet, this means that it is just a projection points and they may definitely vary with time.
Strengths
Weakness
Opportunities-
Threats
Below is the fiscal analysis for the projection that is based on the assumptions
|
Fixed assets |
|
|
Tangible fixed asset |
50000 |
|
Intangible fixed asset |
20000 |
|
Capital assets |
30000 |
|
Long-term capital |
|
|
Share capital |
50000 |
|
Reserves |
10000 |
|
Profit and loss carried forward |
0.0 |
|
Other expenses |
20000 |
|
Total |
180000 |
The total start-up cost for the business will be RS 180, 000 this is the total initial amount of money that will be needed to operate the Pet cafe.
I will need to consider cost of three kinds, that food cost, payroll cost and other costs. In the payroll costs there is the cost for workers and the manager.
Cost of the workers is a commission of 40 percent of the value that I will be received in the business, in this case there would be a variation in the amount needed for the workers. This would be an advantage because when there is need for extra workers, there would be no burden top the regular workers because the cost would be the same.
When it comes to the running cost it is very crucial to say that my Pet Café will not have clients or inventory because the amount of food that is purchase monthly will be the ordered amount only and payments by the clients will be either done by bank transfer or by bank ((Yoon and Jang, 2017).
There are also other cost that will be incurred like insurance, administrative cost, treasury security reserve. The supplies value will be supplying the pet food. The projection of the fixed cost is estimated to be 100, 000 Sri Lankan rupee
The projected net earnings of the Pet Café will in year 1 will be low and it will keep on increasing in the subsequent years. The table below shows the profit breakdown for the first 3 years.
|
2018 |
2019 |
2020 |
|
195,000 |
250,000 |
265,000 |
Conclusions
I consider this business idea for the Pet Café to be financially viable if it would generate the projected net profit, my recommendation to the entrepreneurs is to invest in the industry. However, investors should remember risk sometimes exist in each and every project and there is always threat that the real results that would be will be far different from what is predicted in the business plan (Mezur, 2017).
More specifically to this business plan variation on demand do exist depending on the country. In case of lower demand the price would be reduced and the vice versa. Lowering the price would mean that low earning would be generated in the business and thus the business will not be viable. According to my research I did before thinking of the business idea I found out that there is always high demand of Pet services in Sri Lanka and thus I am confident that my Pet Café would be economically viable (Ka, 2015).
References
Gill, L., Atkins, S., Ramsey, P., & Schaddelee, M. (2017, June). Detecting Sincerity in World Café Experiences en Route to Q-Sorting. In ECRM 2017 16th European Conference on Research Methods in Business and Management (p. 122). Academic Conferences and publishing limited.
Ka Leong, C., 2015. Is the blooming of coffeehouses in South Korea at risk?. International Journal of Tourism Sciences, 15(3-4), pp.110-120.
Lysaght, R., & Krupa, T. 2011. Social business: Advancing the viability of a model for economic and occupational justice for people with disabilities. Kingston: School of Rehabilitation Therapy, Queen’s University.
Mezur, K., 2017. Girls’ R’Pets: The power of Kawaii Shôjo (Cute Girl) and Pet/Girl performance. Performance Research, 22(2), pp.54-62.
Niijima, N., 2016. Chats, Cats and a Cup of Tea: A Sociological Analysis of the Neko Café Phenomenon in Japan. In Companion Animals in Everyday Life (pp. 269-282). Palgrave Macmillan, New York.
Rattanasilpkalcharn, R., 2016. A study of factors influencing behavioral intentions to repurchase towards Cat Cafe in Thailand: a case study of Cataholic Cafe.
Ross, N. (2017). Marketing and Advertising for Small Business in Local Economies.
Yoon, S. Y., & Jang, M. K. 2017. Creation of Visual Culture in Seoul Business Signboards: The Seoul Good Sign Contest, 2009–2013. The Design Journal, 20(2), 199-217.
Yoon, S.Y. and Jang, M.K., 2017. Creation of Visual Culture in Seoul Business Signboards: The Seoul Good Sign Contest, 2009–2013. The Design Journal, 20(2), pp.199-217.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download