Business Plan for Hotel and Entertainment Centre for Pets - Essay Example

Hotel & Entertainment Centre for Pets Name Institution Date Table of Contents Table of Contents 2 Hotel & Entertainment Centre for Pets 3 Introduction 3 Market Needs 3 Uniqueness of the proposition 4 To The Society and Consumers 5 Main product/service 6 Feasibility study 7 Cost estimation and balance sheet 8 Supply chain and partners 12 Legal/environmental analysis (SWOT and PESTLE analysis) 13 SWOT analysis 13 PESTLE analysis 14 Conclusion 17 References 18 Hotel & Entertainment Centre for Pets Introduction Pets have become a part of man social life. Apart from enriching the environment by providing scenic beauty that tourists enjoy, pets play an important role in providing companionship in the lives of human beings in this current era. Dogs, cats, snakes, tortoise, and beautiful gold fish among others, have been used in various situations as pets. The business plan in this case will narrow down to common pets that are kept by majority of people. In this regard, Cats and dogs will be the most appropriate pets that will be referred to throughout this business plan. Various economic assumptions will be used to describe the business environment within which this enterprise will exist. Market Needs Pets have majorly been neglected to animal activists and health specialists who provide the important health services that are needed for the survival of these pets. Most owners of pets do not treat the right owing to the busy schedule of modern day bustle and the congestion in urban life. Due to lack of time and increased pressures in life, pet owners allocate very little time for their pets. With most entertainment joints concentrating on adults and children, pets are left to wallow in the boredom of drudgery life. People who sometime pay little attention to their pets will often want the same pets to accompany them to social gathering where the pets are not provided with any form of entertainment to cheers them up. Many people treat pets in a cold way for absence of a variety of services they can offer to them apart from feeding, cleaning and according them treatment in case of an infection. Therefore, if there is an entertainment hotel and centre for pets, pet owners will have an opportunity of giving a treat to their pets for their cordial companionship. Absence of entertainment joints for pets makes pet owners to confine pets or leave them secluded at home for lack of a good place to walk them, or owing to tight schedules for work. Consequently hotel and entertainment center for pets will provide a place where different pets (dogs and cats), will come to have fun in the company of their owners! The owners will have a chance to interact with other and learn the challenges that come with keeping some types of pets. Evaluation the market needs for pets shows that boredom and secluded lives leads to unhappy pets that make terrible companionship. The congestion in major cities that has been brought about by population upsurge makes it tricky for pet owners to attend fully to their pets just with their home (Pinson, 2004). A hotel and entertainment center for pets will offer a variety of services and goods that will be very necessary for pet owners. Pollutions in major cities of the world make it hard to find safe places where pet owners can walk their pets. Therefore, a hotel and centre for pets will be a good opportunity as a business venture in this era. Uniqueness of the proposition Most places of entertainment cater for kids and adults and do not provide even just lounging for pets. Despite the major role that pets play in human lives, they have been secluded and left to languish in boredom. The uniqueness of this position proposition is that it is among the few places that will cater exclusively for pets while providing avenue where people who are owners of these pets can interact and talk about their pets. Majority of services provided for pets involves treatment and cleaning while forgetting the important part of cheering them up. This opportunity will involve setting activities that make pets engage in competitions, be taught new tricks, and generally boost their social lives. This will be a forum that will encourage interaction between pets and their owners as various people meet just to talk about their pets and watch them being taken though variety of activities that will cheer them up and make them socially active. Most people leave the care of their pets to health service provides and it takes them long to realize when the pets are suffering from anything (Sam & Makor, 2011). This hotel and entertainment centre for pets will encourage pet owners to be more involved in the lives of their pets and create a bond that will enhance positive relationship. Cases of pets’ mistreatment will definitely go down. The role of pets in human life will be encouraged. Few people provide an exclusive hotel and centre for pets entertainment. To The Society and Consumers There is need to let the society learn the importance of pets in human life. Dogs have been used to provide security and track down the scent of criminals into their hiding place. Cats have been known to scare off unwanted visitors in the home such as snakes, lizards and rats that pose a danger to human life. Poisonous snakes can cause death if they bite someone within the home and an antidote cannot be found within time. The society has to appreciate the role that pets play within the home and the community at large. Sensitizing pet owners on the importance of taking good care of their pets is an important step of reaching out to the potential consumers of the services and goods that will be offered at the hotel and entertainment centre for pets. Knowledge is power is used in the right manner. Getting to know the importance of what someone possess enhances good use. Reality shows that communicate the importance of pets and significance of good care over social media will be an important step towards reaching out to potential customers (Bent, Mette & Søren, 2005). Many pet owners do not places where they can take their pets for refreshing moments. Consumers will what be appealed by the uniqueness of this service and convenience of the pets. A Focus on a market niche that is unique helps to appeal to customers. Main product/service The main service that will be provided by this business is entertainment service for pets. Check up units for diagnosing health problems will also be set up in the enterprise. The business will not treat sick pets but will identify them and recommend health services given by credible animal health practitioners (Bent, Mette & Søren, 2002). The owners that will accompany pets to this entertainment center will be offered refreshments and instructional service on how to take care of pets at home. In liaise with animal feed suppliers, the center will provide pet food for sale to the various pets that will come to the entertainment center. Lessons for handling dogs and cats will also be offered in the entertainment center. Refined skills of handling pets will be taught at the entertainment center. Methods of cleaning pets and feeding them will also be provided. Apart from making the pets make merry, the pet owners will be given a chance of learning from one another on the importance of taking good care of pets. It will be a good opportunity of bring together pet owners. Feasibility study Feasibility study determines the viability of a business idea. Various problems that my come up and how they can be tackled comprises some part of the feasibility study besides cost estimation. The current services provided for pets are limited to health services, cleaning and dietary. A business idea for pets’ entertainment introduces a niche that is yet to be exploited by other investors. The care given to pets at home by their owners sometimes exposes them to risks and diseases. Many pets depend on their natural instincts to survive due to negligence of their owners. The hotel and entertainment for pets will provide teaching services on handling of pets and training of pets to avoid risk areas. Cases of dogs and cats drowning in swimming pools show a worrying trend of careless owners who have not trained their pets to sense danger. Such training will be provided by the center through experts who have been trained specifically for the job. The entry strategy that will be used to enter into the market is that of provision of high quality products and services with added uniqueness (Swaim, 2011). The business is exploring a market niche that is a slight diversification from the normal services provided for pets. High quality service provision that is customized will be the greatest value added strategy that will be used by the business to define itself in the market. The clients have to identify with the center because of high quality provision. Market surveys will be carried out to determine the acceptability of the idea to potential clients. Market analysis and projection of possible solution to competitors’ strategies will provide a guideline of how to change the entry strategy in the new market. Liaise with potential business partners for provision of pet food and health service providers will be necessary in order to produce the required quality of product. Possible change can come from animal activists and the government in regard to licensing. This challenge will be overcome by incorporating the partners (government and animal activists) from the initial beginning of the business idea. Every service and product introduced will have to be vetted by the two groups. In the pet food market, the business will enter as a follower but with provision of additional services that are customized to the type of pet. The business will be a leader in special service provision and offering of variety of entertainment activities for pets. The owners of the pets will also be given services that will be included in the bill for the pet brought to the center. Environmental risks like diseases outbreaks will be dealt with through vaccination of all pets that will be brought to the center. The center will follow scientific projection of pet ailments and look for ways of preventing infection in the center. Prices will vary from moderate to high depending on the type of service that a pet owner will want to be offered to his pet. The uniqueness of this idea shows high possibility of it being successful. The business will also diversify into own branding of pet food after negotiations with the producers of pet food (Sam & Makor, 2011). The next part of this feasibility study entails cost estimation and the balance sheet. Cost estimation and balance sheet Fiscal year estimation of the various costs for the running and maintenance of the pets’ hotel and entertainment will factor in the element of economy that includes inflation and business cycles. Some of the cost estimated will include: Salaries and wages $180,000 Pets food $ 75,000 Government license $ 1000 Transport costs $66,000 Stationery $500 Electricity $1000 Refreshments $55,000 Screening service costs $34000 Advertising $ 90,000 Miscellaneous $15,000 Assets and liabilities that are projected include Capital $750,000 Premises $1,500,000 Motor vehicle &300,000 Stock of food pets and other things $45000 Accounts payable 79,000 Account receivable 83,000 Revenues $ 550,000 Rent and rates $35,000 Profits from sale of pet food $123,000 Prepayments $120,000 Bad debts $ 73,000 Provisions $56,000 Bank loan $1000,000 Accruals 40,000 Other income $225,000 Cash $76,000 Income statement for hotel and entertainment center for pets $ $ Revenues 550,000 Other income 225,000 Profits of sale of pet food 123,000 Total revenue 898,000 expenses Salaries and wages 180,000 Pet food 75,000 Bad debts 73,000 Advertising 90,000 Government license 1000 Transport costs 66,000 Stationery 500 Electricity 1000 Refreshments 55,000 Screening costs 34,000 Rent and rates 35,000 Miscellaneous 15,000 625,500 Net profit 272,000 Hotel and pet entertainment center financial statement as at the end of fiscal year $ $ $ $ Current assets Current liabilities stock 45,000 Provisions 56,000 Account receivable 83,000 Accounts payable 79,000 prepayment 120,000 Accruals 40,000 Cash 76,000 175,000 324,000 Non-current assets Non-current liabilities Motor vehicle 373,000 Bank loan 1,000,000 Premises 1,500,000 Capital 750,000 1,873,000 Add Net profit 272,000 1022000 2,197,000 2,197,000 Supply chain and partners The supply chain will include all stakeholders that will be involved in making the pet hotel and entertainment center a success. Investment partners will be very important in making the business enterprise a success. Financial institutions will be required to provide financial support for financing this business idea. Health specialists will be required to provide the screening services for pets (Siegel, Ford & Bornstein, 1993). Animal entertainment specialists will provide the necessary services for entertaining animals and letting the pet owners get to know how to handle the pets. The pet owners are important stakeholders who will be required to supply pets to the hotel and entertainment center. The center will order pet food from suppliers of pet food in order to sell to pet owners who will their pets to the center. The pet hotel and entertainment center has ran in accordance with the government set regulations and rules. The government is the regulator in all trades and therefore all efforts will be made to make sure that no rule is breached. There will be screening units for diagnosis of infections of pets in the center. Pets will not be allowed into the center before being screening and given a certificate for membership. The pets have to be handled in a kind manner in order to avoid the wrath of animal care activists. Legal/environmental analysis (SWOT and PESTLE analysis) SWOT analysis The SWOT analysis of any business enterprise shows the weaknesses, strengths, opportunities and threats that may be encountered in the course of business operation. The show analysis for this enterprise will be as follows: Strengths The biggest strength of this proposition is the uniqueness and originally of the ideas. There are very few centers that will be offering the same services that are offered by the hotel and entertainment center for pets. There will be a big competitive advantage before other investors discover the lucrative nature of the idea. The business is a market niche that has not been exploited before (Swaim, 2011). Investors who have ventures in the pet side have not provided exclusive services for pets. The fact that this market niche has not been exploited by many people, gives the chance of making enormous profits. The uniqueness of the idea makes it hard for other investors to copy it. Weaknesses The fact that many pet owners do not understand the importance of good care for pets creates the likelihood of them ignoring the services provided. This being a new market niche, there will be more marketing and advertising costs that will be incurred before the business reaches breakeven. Getting the right investors to sponsor the idea may not be easy as some people care less about pets. Slow market awareness will lead to low profits being realized before the business picks up. Opportunity The business presents a unique market that has the potential of growing at a very fast rate. In this era there are many people who keep pets in their homes, therefore, there will be a ready market for the services that will be provided in the hotel and entertainment center for pets. There is high possibility for growth provided everything is done to focus on value added services (Sam & Makor, 2011). Threats Possible threat may come from animal care activists who may demand many requirement and proof before the business become operational. There is also the threat of other people copying the idea and presenting it as their own or putting up a similar business. Animal infections can lead to government giving restrictions against movement of pets from one area to another and thus affecting business. Beliefs and values of different religious groups can preach against accordance of excellent care to pets. The high costs of operations may be very inhibiting. PESTLE analysis Political factors Political ideologies direct the way a country is run. Laws, policies, decrees, and regulations are mostly politically instigated. Trade laws and regulations formulated by the government affect how trade is carried out in the country. If the government outlaws a certain type of business, it would be very hard for that business to be established (Marks et al, 2009). Economic factors The recent economic meltdown demonstrated how vulnerable the whole world is to economic cycles. Increasing costs of operations and loss of jobs due to slow economic growth lead to shrinking business opportunities. People narrow down on basics as they struggle to cut down on their spending. Low rate of economic growth is very negative to new business establishment. When the economy is doing well there are high chances of expansion and growth of the business. Social factors Matters of religion and attitudes towards animal will affect the manner in which the enterprise will do it business. Social beliefs affect the trend of embracing new business and depart from old norms and values. The business enterprise will have to overcome fallacies and stereotypes that associate care of pet as being a useless job. Social factors affect the acceptability of any kind of business in the larger society (Strauss, 2012). Technological factors Technological advancement and adaptability will affect the manner in which business is done within the enterprise. The business enterprise will have to be fitted with modern equipment that will offer the best refreshing activities to both the pet owners and their pets. Changing technologies affect the manner in which business is done in the global world. Some screening services will involve the use of sophisticated machines and equipment (Chien, Shih, Shi & Chu, 2005). Legal factors The business will be affected by any international or local regulation on pets handling or their food. The business has to meet all rules and regulations set by the government in operating such business. Animal care activists will have to be consulted concerning some of the activities that are pets have to participate. Growth Strategy The growth strategy will majorly involve in value added services and the efficiency of the supply chain. Providing new services and extension product lines will be a major boost to the growth strategy of the business (Cunill, 2006). Discovering niches in the pet care services and offering the unmet needs will be also an additional way of expanding business. There will creation of more support services to offer the maximum utility to pets and their owners. Feedback systems will be fitted within the organization to determine the response towards services being offered in the center. Personalized or customized services will be offered to encourage more customers to come or bring their pets to the center. Risks and Exit strategy The risks that are involved include strange diseases that may result in movement of animals being restricted including pets. Government restrictions concerning the kind of business being run may end into untimely demise of the business. The exit strategy will involve diversification into related business such are animal orphanage or reducing the type of services being offered at the entertainment center. It would be shrewd to exit the business before further losses are incurred (Allen, 2011). Withdrawing manner from the business that has not been used yet will help in reducing the damage. Conclusion The hotel and entertainment center offers a unique opportunity of investing into an original business idea. There are high chances of the business being successful. However, there should adequate market research to ensure that the business is viable. From the evaluation of every aspect involved, the idea could be a big business very that is worth trying. Nevertheless, there are risks involved and which can lead to the business collapsing before it even begins. The SWOT analysis reveals a high possibility of the business doing well if it is established. All stakeholders have to be consulted before anything else is put in place. References Pinson, L. (2004). Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing Your Company’s Future (6th Edition). Dearborn Trade: Chicago, USA. Siegel, E. S., Ford, B.R., & Bornstein, J.M. (1993), The Ernst & Young Business Plan Guide, New York: John Wiley and Sons. Bent, F., Mette K. S. H., & Søren L. B. (2002) Understanding costs in public works projects: Error or lie? Journal of the American Planning Association, 68 (3); 279-295. Bent F., Mette K. S. H., & Søren L. B. (2005). How (in)accurate are demand forecasts in public works projects? Journal of the American Planning Associationsidoo kale ayaa waxaa, 71 (2); 131-146. Cunill, M.O. (2006). 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Launching New Ventures: An Entrepreneurial Approach, New York: Cengage Learning, 2011 Read More