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Beautiful young redhead woman with an adorable french bulldog puppy buying goods in big modern pet shop.

Executive Summary

Pawz Hub specializes in caring for and providing a secure area for your dog daily. They are aware of the stress that your pet experiences while you are working to pay your expenses. Small or medium-sized dogs are welcome at our serene daycare, where they may unwind and have fun all day. Our daycare service offers a half-day or full-day stay and several packages based on your requirements. Unless you specifically request otherwise, your dog will socialize with other dogs at daycare. We provide lots of beds, toys, and play areas for your dog at our cage-free daycare. Our knowledgeable and caring team will take good care of and watch over your dog.

Problem Summary: Puppies start learning the dog language with their mother and siblings. Their social abilities might deteriorate without a diversity of dogs to socialize with outside the house.

Solution Summary: Daycare allows dogs to keep practicing their dog-to-dog communication skills with a diverse cast of characters. It’s also a healthy outlet. It’s different from just taking them to a dog park where you won’t know if the other dogs are friendly or healthy. They not only do get socialization, but they also get exercise. They learn how to bond and respond to different people. And they also play with other dogs in a safe and secure environment.

Industry Overview: 

Many individuals struggle to juggle the demands of their jobs, personal life, and their pet’s needs. Some of them are busy professional families that travel often. The pet daycare and lodging market are expected to increase significantly due to the rising demand for these services. The need for pet daycare facilities and accommodation will reach USD 8.24 billion in 2020–2024, expanding at a CAGR of 7%. Pet daycare and lodging services are in more demand because of the expanding pet humanization culture, particularly in North America and Europe.

Financial Forecast: 

Business Description

Business Name: Pawz Hub

Owner:  Steven Gould

Management Team:

NameDesignation
Patricia MurphyGeneral Manager
Vince WilliamsPlayground Supervisor
Danielle BrownDaycare and Boarding Manager
Mildred MillerFinance Manager

Location:

Our daycare is located at 2006 West Galena Boulevard in Aurora, Illinois. In our spacious outdoor areas and climate-controlled indoor facilities, your dog will have the opportunity to interact with its other animal pals. At Pawz Hub, they may play without cages all day long, offering your pet the chance to make friends in a roomy, adorable facility that is stuffed with toys.

Mission:

Our mission at Pawz Hub is to provide a secure, energetic, and healthy recreational setting that will enhance the quality of life of fur kids and their owners.

Vision: 

To be the most dependable doggy daycare in Illinois that ensures your furry child receives ongoing care and attention, allowing you to concentrate on your day without worrying about your puppy. 

Services:

Dog owners may leave their animals at Pawz Hub at work, away for the weekend, or on vacation. In addition to offering the best pet care possible, we provide dogs with a memorable social experience. We give the animals food, exercise, bathing, grooming, and low-level veterinary treatments. While you are away, our skilled and qualified staff will completely watch your dog and provide them plenty of affection, care, and exercise.

Financial Overview

Fund Usage

Key Metrics

2023F2024F2025F
Earnings
Revenue$8M$23M$38M
Gross Profit$5M$14M$23M
Gross Margin60%59%59%
EBIT$2M$7M$12M
EBIT Margin25%31%32%
Liquidity
Current Ratio566
Cash Ratio455
Others
Average CAC$18$20$22
Inventory Turnover111111

SWOT ANALYSIS

STRENGTHWEAKNESS
  Our enthusiasm for our job and love of dogs will enhance client satisfaction and boost favorable feedback, which is an excellent form of exposure.   Community components encourage more sign-ups   Ratings and profiles promote repeat business    May be responsible for problems or pet losses   The need for sitter credentials   Relies on a large number of pet owners and pet sitters signing up for jobs..
OPPORTUNITYTHREAT
  Community involvement increases sign-ups   Increasing use of secondary expenditure goods and services   Pet ownership is reportedly growing globally.  Creation of competing services   Holiday sales are down due to the recession.   Poor response to professional services

Objectives

1. To start the company and reach monthly revenues of $20K or more by the end of the first year.

2. To achieve financial success by the third year and break even in the second year.

3. To achieve profitability in the second and third years while increasing sales by 20% annually. 4. To build your reputation by securing local businesses. 

Founder

STEVEN GOULD
Owner

Steven Gould has been a proponent in the animal sector for the last ten years. Steven has developed skills in dog training, animal care, dog daycare, and pet CPR & First Aid during the last ten years. She is passionate about improving Houston Bark Park. The daycare dogs are all treated as Steven’s own since she owns a business.

Management Team

Patricia Murphy
General Manager 

Patricia Murphy has always supported and volunteered for Pawz and is linked to the proprietors. Patricia leads the team as our GM and provides more than 12 years of managerial expertise. Patricia plays a significant role in our marketing and advertising as well. She is a fantastic match since she is equally at ease volunteering at a daycare as she is going to events.

Mildred Miller
Finance Manager

Mildred Miller is responsible for the budget planning, reporting, and monitoring of the development of the facility. Mildred loves pets, and her positive outlook is contagious in our pack. 

Danielle Brown
Daycare and Boarding Manager

Danielle Brown has been a member of the Pawz Hub since day one. She began as a pet companion and advanced to management. Along the process, she received training in Pet CPR and First Aid and earned his certification as a professional dog trainer (ABC-DT).

Vincent Williams
Playground Supervisor

Vincent Williams has made Pawz Hub a better place to work by streamlining our processes. He sets an excellent example for all of the hub’s rules and procedures regarding professionalism and responsibility.

Organogram

Operational Overview

Ms. Murphy will oversee all company operations, with Mr. Steven Gould, the owner, serving as group leader. Ms. Danielle Brown will be in charge of overseeing everyday activities. Vince Williams will be in charge of managing, directing, and keeping an eye on the facility, while Mr. Miller will be in charge of the money, keeping an eye on the sales, and track of client interactions.

The geographic market of affluent suburbs around the urban region will be the main emphasis of Pawz Hub. In Aurora, Illinois, on West Galena Boulevard, we’ll set up shop first. Ages 35 to 65 make up the majority of our target market.

Industry Analysis

Industry Overview

The pet daycare and lodging industry are projected to reach $8.24 billion by 2024, a 7% CAGR. The study analyzes the current market situation, significant trends and drivers, and the overall market environment. Market providers should concentrate on fast-growing sectors’ growth potential while retaining their positions in slow-growing segments. Pet Daycare and Lodging Market are categorized as below:

  • Type
    • Cat Daycare and Lodging
    • Dog Daycare and Lodging
    • Combined Daycare and Lodging
  • Geography
    • South America
    • MEA
    • North America
    • Europe
    • APAC

COVID-19’s effects compelled many individuals to remain at home for long, whether due to shelter-in-place directives or work-from-home recommendations. Pet shelters saw a rise in adoptions and fostering. The pet industry has been booming. According to The American Pet Products Association, Pet ownership has risen from 56% to 68% in 30 years. The worldwide pet care market reached USD 148.10 billion in 2021 and is predicted to rise 5.1% from 2022 to 2030.

Rising pet humanization will boost family and pet care expenditure. Cats, dogs, and other pets are simpler to humanize and pamper than bigger pets. They pay a lot to provide their dogs with the best life possible. Consequently, pet care goods such as feeders, bowls, and waterers have grown popular. The internet and technology have changed pet ownership. Pet owners are eager to learn about pet health. They promote pet prevention. Responsible pet ownership has grown in popularity. This tendency also drives pet care product sales and the sector. Most market growth is attributable to cultural trends. Millennial and Gen Z customers have embraced pet-owning and pet-loving more than their predecessors. Younger families owned over 60% of pets in 2020, while baby boomer households owned 30%.

People are adopting lifestyle changes to reduce their ecological impact, including pet products. Many pet accessories are produced using sustainable, recyclable materials instead of plastic. Neo Bites became the first carbon-negative dog food manufacturer in 2022.

Pet Type Insights

Dogs made up 40% of the market in 2021. Most people own dogs or cats. Dogs are popular because they ease anxiety, stress, depression, and loneliness, boost cardiovascular health and stimulate exercise. People who live in apartments without a yard or porch choose pet furniture. This category will expand owing to these considerations.

Market Size

Competitive Landscape

Competitors in the industry take these variables into account when building pet daycare and lodging facilities and purchasing pet care items in an effort to stand out in the market and satisfy customers’ individual needs. Daycare, boarding, training, walking, playing, and grooming are a few of the pet daycare and lodging services. The services are offered for a variety of time frames, including overnight, weekly, and monthly. Numerous businesses provide customized pet services to meet the needs of their clients, such as special pet rooms depending on the size of the animals and pet sitters in cage-free stay-n-play facilities. Depending on their demands, pet owners may choose from a variety of appealing pet services. During the forecast period, this is anticipated to contribute considerably to the expansion of the worldwide pet daycare and lodging market.

Some of our major competitors are the following:

Best Friends Pet Care Inc

Best Friends Pet Care Inc has been setting higher standards for the pet care sector since 1995. With more than 40 sites around the country, including Walt Disney World and Walmart Supercenters, we provide our clients the finest pet care in a convenient and welcoming environment where safety,  enjoyment, comfort, and are at the heart of what we do.

Dogtopia Enterprises

Dogtopia Enterprisesprovides daycare, boarding, and spa services for dogs and other pet care options. Since 2015, we have given dog owners a secure and enjoyable location to board their dogs or spoil their puppies. Our staff takes great pleasure in offering our clients a safe and healthy environment for their cherished pets.

Hounds Town Happy Hounds has more than 10,000 square feet of spacious playrooms, luxurious overnight boarding suites and townhomes, and a state-of-the-art doggie day spa. Our facility provides a natural pack setting where dogs may socialize with other dogs of the same size, temperament, and play style all day long. Socializing helps a dog have a balanced life.

Marketing Plan

The cost of the “daycare” will be $12.00 per hour. This covers both dog grooming services and dog care. The predicted daily care for dogs and the average number of hours each dog will be housed daily are used to predict sales. With time for owners to drop off and pick up their dogs before and after work, it is anticipated that we will first provide services Monday through Friday, 8 AM to 6 PM. Sales will rise as the months go on due to an increase in the number of dogs we take care of each day.

As the need and demand grow, the range of services will be extended to include weekends and extended “holiday” boarding.

Marketing Budget

Total budget for projected years:

The following graphs indicate budget allocation across projected years:

Marketing Channels

  • Social Media: Facebook and Instagram are two platforms we wish to use. We’ll start by promoting our content and offers to attract additional fans. Our sponsored and organic campaigns will merge once they achieve a certain threshold of followers. The CAC for this channel will increase with time due to rising competition.

Google Ads: Google Ads will help brand recognition, revenue growth, and early content quality testing. Google Analytics numbers will help us attract traffic and determine how our target market will react since there won’t be many visitors initially. We will be able to evaluate the quality of our content. As competition increases, the CAC for this channel will also increase with time.

Email Marketing: Our first budget allotment for this channel will be small due to the small email list and the shortage of initial content on our website. From the second year, email marketing will be our primary focus. Greater competition has little impact; hence over time, the CAC for this channel will remain stable.

In-person Marketing: Marketing representatives will visit businesses, event organizers, and other relevant locations to spread awareness among stakeholders. We will initially allocate a larger budget for this channel since we need to increase awareness via word of mouth. The customer acquisition cost (CAC) for this channel will consistently decrease after first contact with stakeholders if communication is maintained using a more economical strategy.

Event Sponsorship: We have two options: either we contact these event organizers, or we design our activities. These events will allow us to raise brand awareness and sales by providing discount coupons and employing other promotional techniques.

Content Marketing: Content production will take the shape of blog posts, YouTube videos, answers to Quora questions, social media updates, etc. We will conduct keyword research to produce articles based on specific keywords with a high search volume and low keyword difficulty. Due to increased competition, the CAC for this channel will increase over time.

Financials

Earnings

Liquidity

Revenue

Cost of Goods Sold

Operating Cost

Cash Flow Statement2023F2024F2025F
Cash Flow from Operating Activities
EBIT-$25,471$117,410$162,139
Depreciation$2,000$3,351$4,634
Payables
Salaries payables$14,750$16,000$19,400
Total payables$14,750$16,000$19,400
change in payables$14,750$1,250$3,400
Receivables
Revenue related receivables$46,688$79,064$99,960
Total receivables$46,688$79,064$99,960
change in receivables-$46,688-$32,376-$20,896
Inventory
COGS inventory$56,725$96,102$121,502
Total inventory$56,725$96,102$121,502
change in inventory-$56,725-$39,377-$25,399
Net cash flow from operating activities-$112,134$50,259$123,877
Cash Flow from Investing Activities
R&D$25,000$50,680$48,083
Web Development$15,000$10,136$9,617
Miscellaneous$10,000$6,757$6,411
Net cash flow from investing activities-$50,000-$67,573-$64,110
Cash Flow from Financing Activities
Equity$500,000
Net cash flow from financing activities$500,000
Net (decrease)/ increase in cash/ cash equivalents$337,866-$17,315$59,767
Cash and cash equivalents at the beginning of the year$0$337,866$320,551
Cash & cash equivalents at the end of the year$337,866$320,551$380,318
Balance Sheet2023F2024F2025F
Non- Current Assets
R&D$25,000$75,680$123,763
Web Development$15,000$25,136$34,753
Miscellaneous$10,000$16,757$23,168
Total non- current assets$50,000$117,573$181,683
Accumulated Depreciation-$2,000-$5,351-$9,985
Net non- current assets$48,000$112,222$171,698
Current Assets
Inventory$56,725$96,102$121,502
Cash$337,866$320,551$380,318
Receivables$46,688$79,064$99,960
Total current- assets$441,279$495,717$601,780
Total assets$489,279$607,939$773,478
Liabilities
Accounts payable$14,750$16,000$19,400
Total liabilities$14,750$16,000$19,400
Equities
Equity$500,000$500,000$500,000
Retained earnings-$25,471$91,939$254,078
Total equity$474,529$591,939$754,078
Total liabilities & equities$489,279$607,939$773,478
Salaries2023F2024F2025F
Management & Operations
CEO$24,000$24,000$24,000
COO$0$0$21,600
Head of HR$0$0$0
Total$24,000$24,000$45,600
Marketing & Sales
Marketing Manager$15,000$30,000$30,000
Regional Representative$108,000$108,000$108,000
Online Store Manager$12,000$12,000$12,000
Digital Marketer$0$0$19,200
Total$135,000$150,000$169,200
Finance & Accounting
CFO$0$0$0
Bookkeeping Personnel$18,000$18,000$18,000
Audit Personnel$0$0$0
Total$18,000$18,000$18,000
Total Salaries$177,000$192,000$232,800
Non- Current Asset Schedule2023F2024F2025F
R&D$25,000$75,680$126,147
depreciationNANANA
accumulated DepreciationNANANA
Net book value$25,000$75,680$126,147
Web Development$15,000$25,136$35,229
depreciationNANANA
accumulated DepreciationNANANA
Net book value$15,000$25,136$35,229
Miscellaneous$10,000$16,757$23,486
depreciation$2,000$3,351$4,697
accumulated Depreciation$2,000$5,351$10,049
Net book value$8,000$11,406$13,438
Total Net book value$48,000$112,222$174,814
Total Depreciation$2,000$3,351$4,697
Total Accumulated Depreciation$2,000$5,351$10,049

Assumptions

Investment Assumptions2023F2024F2025F
Equity Injection$500,000
Total Capital$500,000
R&D$25,000$50,680$48,083
% of initial equity5%
% of last year’s ending cash balance15%15%
Web Development$15,000$10,136$9,617
% of initial equity3%
% of last year’s ending cash balance3%3%
Miscellaneous$10,000$6,757$6,411
% of initial equity2%
% of last year’s ending cash balance2%2%
Working capital$450,000$270,293$256,441
% of initial equity90%
% of last year’s ending cash balance80%80%
No. of Sales Assumptions2023F2024F2025F
Total Promotional Budget$135,000$175,690$217,975
as % of working capital30%65%85%
In- person Marketing
proportion of total budget35%25%15%
spending$47,250$43,923$32,696
CAC$25$10$7
No. of Sales1,8904,3924,671
Event Sponsorship
proportion of total budget10%12%13%
spending$13,500$21,083$28,337
CAC$25$30$35
No. of Sales540703810
Content Marketing
proportion of total budget13%15%20%
spending$17,550$26,354$43,595
CAC$15$20$25
No. of Sales1,1701,3181,744
Social Media
proportion of total budget15%15%15%
spending$20,250$26,354$32,696
CAC$15$15$15
No. of Sales1,3501,7572,180
Google Ads
proportion of total budget5%13%15%
spending$6,750$22,840$32,696
CAC$30$35$40
No. of Sales225653817
Email Marketing
proportion of total budget7%10%12%
spending$9,450$17,569$26,157
CAC$10$10$10
No. of Sales9451,7572,616
Affiliate Marketing
proportion of total budget15%10%10%
spending$20,250$17,569$21,797
CAC$15$20$25
No. of Sales1,350878872
Revenue Assumptions2023F2024F2025F
Light Knee Pad for Women
% of total sales100%50%50%
No. of sales7,4705,7296,855
unit price$75$75$75
Aggressive Knee Pad with Shin Guard for Women
% of total sales0%25%25%
No. of sales02,8643,427
unit price$65$65$65
Spine Protector for Women
% of total sales0%25%25%
No. of sales02,8643,427
unit price$80$80$80
COGS Assumptions2023F2024F2025F
Light Knee Pad for Women
unit cost$26.3$26.3$26.3
Aggressive Knee Pad with Shin Guard for Women
unit cost$22.8$22.8$22.8
Spine Protector for Women
unit cost$28$28$28
Payment processing fees
as % of revenue3%3%3%
Packaging fess
as % of revenue1%1%1%
In- bound shipping cost
as % of revenue1.5%1.5%1.5%
OpEx Assumptions2023F2024F2025F
Legal & professional expenses
as % of revenue1%1%1%
Employee travel and relevant expenses
as % of revenue3%3%3%
Miscellaneous
as % of revenue2%2%2%
Spillage & wastage
as % of revenue2%2%2%
Cash Flow Assumptions2023F2024F2025F
Payables
Salaries payables as % of total salaries8%8%8%
period in months111
Receivables
as % of revenue8%8%8%
period in months111
Inventory
as % of revenue25%25%25%
period in months333