Pertain - Business Plan Example

PERTAIN BUSINESS PLAN Executive summary Petrain is a business involved in the training of pets for various occasions including fashion and films. Additionally, clothing pets for the same events is an additional activity Petrain intends to undertake. The target market for Petrain includes the elderly, children, filmmakers, magazines and tourists Since the location of the business is flocked by tourists, Petrain intends to showcase this prowess there from time to time. The core business, however, for Petrain will be to offer training services for the aforementioned target group. Even though there are other competitors in the market, Petrain’s USP remains outstanding hence guaranteeing competitive advantage. Aims and objectives The primary objective of every business is to remain profitable but often this is not the case for varied reasons one of which is poor planning. Secondly, profitability is only possible when the services offered are outstanding and delivered exceptionally well. Businesses that focus solely on making profits may end up in frustrations because clients will not spend money on a service or product, which is ordinary. It is by providing a solution to a problem, and doing so in an outstanding manner that attracts customers to any business (Teece 2010). In light of this, the main objective of Petrain is to satisfy clients in regard to pet-related services. This includes clothing the pets for fun-related functions, training the same for fashions or films sessions. Additionally, making Petrain a formidable force in respect to the market share is an imperative in the UK. In order to make this a reality, the company will aim at offering clients services which will put it above its competitors. For instance, the aim is to make sure that clients who do not have time to visit the physical offices shall be served in their homes. Petrain aims at availing these services to client’s homes thus the door-door service is one of the aims. By employing this method, it proves that Petrain management is innovative. As Teece (2010) discovered, innovativity is vitally important in any business whether a start-up or an established one. Business environment Despite the innovation fronted by Petrain, other competitors have been in the business for sometimes. The major competitors include D4 Pet services, Parkside Pets and Paws-Pet who offer the same services in the UK. Despite having an upper hand in terms of expertise, these companies do not have all the services offered by Petrain. For instance, whereas they all take care of the pets, there is no mention of clothing the pets or training them for the aforementioned activities. As stated earlier, a company’s ability to remain innovative is vital to its growth. Additionally, it plays a significant role in withstanding competition and shaping its future too (Teece 2010). SWOT and PEST analysis. In order to understand just how well Petrain fits in the UK market, this section will highlight the SWOT and PEST analysis. First, the location of business is in itself strength as it has number of advantages, which will make the business thrive. For instance, Zone 1 is one of the areas where many tourists flock meaning there is a probability of many of them wishing to see the clothed pets. Secondly, there is the part of availing the services to pet owner’s right at home, which means Petrain is not relying solely on the tourists at Zone 1. Furthermore, Petrain is offering these services at a considerably lower cost in comparison to the competitors. Pricing is another major determinant of a business success where competitors’ could be dealt a major blow (Borchert 2008). Nonetheless, some weaknesses do exist within pertain one of which is the unsettle clientele unlike the competitors who are already established. The previously mentioned competitors have their clientele many of whom Petrain intends to convert to their own. As of now, this is a major weakness faced by Petrain since clients have had a chance to experience the services. Normally, one of the major challenges faced by start-ups is trust by clients who feel there is no record of accomplishment (Ronning 2011). Notwithstanding this weakness, Petrain intends to overcome this services by ensuring customer service is top notch. Opportunities include the large number of tourists in the UK where display of clothed pet is a major attraction. Secondly, holding parties where animals’ playing prowess is demonstrated is an additional platform to ensure Petrain’s name become a household affair. Again, the people targeted by Petrain find it friendly to have pets. For instance, children are known to be lovers of pets and this is a real opportunity. Similarly, the elderly are somewhat lonely and animals provide them with a chance of overcoming loneliness. If the door-door strategy is implemented to the letter, there is likelihood of increasing profitability and boosting rapid growth. Fashion magazines are going to provide major platform that could catapult the business to greater heights because of the audience they reach. Threats faced by Petrain include cases of rubies in case the pets bit some of the intended individuals mainly during the tourist attractions. Even though the cases are not very common, this could adversely affect not just the market but the reputation of the company too. To mitigate against this threat, there is a plan to vaccinate these animals regularly. Another one is backlash from animal activists who could claim animal mistreatment for clothing them. To prevent this, Petrain intends to have an understanding with some of these firms on the kind of materials appropriate for these activities. PEST analysis Petrain’s location in the UK will enjoy political stability, as the country is known to be politically calm unlike some other parts of the world. The labour laws and tax policies are friendly too meaning Petrain has a chance of making profits without harassment of any kind. Labour is readily available and there is no sign that the political situation could turn unfriendly. Economically, the UK is stable and even though it is not possible to predict the precise future outcome, analysis shows that the country’s economic status has remained stable for some time now (Al-Mubaraki and Busler 2010). Social factors in UK are supportive of this venture as evidenced by the number of competitors. Culturally, the people of UK view pets in a friendly manner, and in fact, many do keep them in very good conditions. There is no statistics to show a drop or a change in attitude concerning pets. While pets are occasionally blamed for health-related concerns, many people in UK vaccinate their animals to ensure safety. The population may not be growing rapidly but this may not have much effect on this business. This is because, contrary to a popular perception that pets are kept by the children and the elderly, many people even in the thirties do indeed have pets (Al-Mubaraki and Busler 2010). Technologically, the country has advanced greatly and this will have a positive impact on Petrain’s plans. For instance, there is a plan to have a website where clients will be requesting these services by simply clicking a button. Further, materials on how pet owners can learn to play with their animals will be provided thus making it a fun-filled venture. In essence, the PEST analysis has not indicated any sign of causing a negative impact on this business plan. Instead, there is every sign that the business environment is a positive one with a potential for growth especially in this area of Zone 1. Analysis From the PEST and SWOT analysis, it would be appropriate to state that Petrain’s future is bright due a number of factors. As explained above, the UK political environment has been consistently peaceful, and with the country being highly civilised, it is not likely to have political unrest. Similarly, the economic situation has remained friendly and it is from these that confidence is expressed on the brightness of Petrain’s future. According to Crainer (2014), a business future is mainly shaped by factors related to PEST in regard to external factors and SWOT as far as internal factors are concerned. Product description Petrain is a company that intends to offer two services- precisely pet training and clothing for fun-related events like fashion and films. The services will be offered to parts of London’s Zone 1 and its suburbs. The major targets are the elderly and children but this does not imply it is restricted to this group of people. Marketing area In order to ensure competitive advantage is attained, Petrain will apply the demographic segmentation whereby age will be used in the arrangement of the customers. That is to say the targeted are classified as per the age with the elderly and young children being the other category. The pet service industry is rather homogenous which means there is need to be extra creative in order to guarantee client retention. Therefore, Petrain shall ensure that animals are trained more on how to play in order to ensure that children find it hilarious, as will the elderly. Additionally, Unique Selling point (USP) is needed to handle competition especially where it is homogenous as is the case with pet service. Concerning this part, Petrain’s USP is that the clothing of animals is not very common with the other competitors. Instead, they tend to focus mainly on the training meaning this company has a chance to remain a step ahead in terms of competition. Further, the fact that the services are being offered to a number of entities mean Petrain will be in a pole position to not only handle competition but also have a significant market share. For instance, the service of clothing the pets is extended to fashion shows and magazines some of which occur on a monthly basis. Financial area Finances play a pivotal part in the stability of a business or lack of it thereof and it is not exceptional in the case of Petrain. This section will highlight the financial area of Petrain as far as cost and projected sales are concerned. The figure below shows the start up and running cost, depending on the current UK market rates (Sinclair & Linkin, 2014). Figure 1.0 Particulars Quantity Unit cost (Pounds) Total cost (Pounds) Clothing materials One bale 200 200 Trainer’s wages Per home 30 30 License 1 150 150 Other regulations 1 200 200 Miscellaneous 1 300 300 In order to ensure wages are made for work done, trainers are paid as per the work they undertake as opposed to having a standard salary. This way it will be easier to ensure that the company does not spend money on staff that have nothing to offer in return. The license is a legal requirement thus cannot be overlooked, as are other regulations especially ones related to handling animals. Having highlighted the cost, the table below shows the figures of projected sales (Sinclair & Linkin, 2014). Figure 1.1.0 Particulars Quantity Unit cost (Pounds) Total cost (Pounds) Clothing 5 pets daily 70 350 Training 5 pets daily 30 150 License 1 150 150 Other regulations 1 200 200 Miscellaneous 1 300 300 Bibliography Al-Mubaraki, H. and Busler, M. 2010. Business incubators models of the USA and UK: A SWOT analysis. World Journal of Entrepreneurship, Management and Sustainable Development, 6(4), pp.335-354. Borchert, O. 2008. Resource-Based Theory: Creating and Sustaining Competitive Advantage. Journal of Marketing Management, 24(9-10), pp.1041-1044. Crainer, S. (2014). Future Thinking. Business Strategy Review, 25(3), pp.77 Ronning, L. (2011). Social capital and new business start-ups: the moderating effect of human capital. IJESB, 12(2), p.207. Sinclair, W. I., & Linkin, E. B. (2014). St. Jamess Place tax guide, 2014-2015. http://www.palgraveconnect.com/doifinder/10.1057/9781137411945. Teece, D. 2010. Business Models, Business Strategy and Innovation. Long Range Planning, 43(2-3), pp.172-194. Read More