FETCH101 Business Plan Final | Pet | Tech Start Ups

FETCH101 Business Plan

Contact: Doug Voorhees, Founder FETCH101@hotmail.com 310-801-3365

Confidentiality Statement
The undersigned reader acknowledges that the information provided by FETCH101 in this business plan is unique to this enterprise and is confidential; therefore, the reader agrees not to disclose any information contained herein or in verbal discussions without the express written permission of by FETCH101, or its principals. It is acknowledged by the reader that information to be furnished in this business plan is in all respects confidential in nature, other than the information that is in the public domain, and that any disclosure or use by the reader may cause serious harm or damage to by FETCH101, or its entities. Upon request, this document is to be immediately returned to FETCH101, _____________________________________ Signature _____________________________________ Name (typed or printed) _____________________________________ Date

This is the business plan of FETCH101. The presentation of this business plan does not imply an offering of securities.

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Table of Contents

1.0 EXECUTIVE SUMMARY Introduction Location Objectives Growing Market Management Competitive Landscape Factors to Success Revenue Strategy Startup Costs 2.0 BUSINESS SUMMARY Company Profile Stage of Development Mission Statement Location & Facilities Objectives Keys to Success Capital Requirements Location & Facilities 3.0 PRODUCT SUMMARY Products & Services Description Environmentally-Friendly Technology Systems 4.0 MARKET ANALYSIS SUMMARY Industry Analysis Market Trends Competitive Landscape Marketing Sustainability MultiService/Convenience SWOT Analysis

5.0 IMPLEMENTATION SUMMARY Value Proposition Competitive Advantage Marketing Strategy Sales Forecast Exit Strategy 6.0 ORGANIZATION SUMMARY Management Team Personnel Plan Key Relationships 7.0 FINANCIAL PLAN Key Assumptions Break-Even Analysis Projected Profit & Loss (5 yr) Projected Cash Flow (5 yr) Projected Balance Sheet (5 yr) APPENDIX Pro Forma Financials

FETCH101: Business Plan
1.0 Executive Summary

Introduction
FETCH101 provides pet care services and peace of mind for pet owners. FETCH101‘s service offerings are unprecedented for the Southern California market. There are other pet day care facilities that provide overnight care with a variety of other services. But, FETCH101 has studied the competitors and realized their weaknesses to come up with a formula for success that creates space within the market for growth and future expansion. FETCH101‘s competitive advantage relies on having a unique facility located in a highly-visible, highly trafficked location providing a one-stop location underlying convenience, and animal wellness above all else. FETCH101 will be the first Green animal care facility in Southern California. Services Pet Day Care Overnight Care Pet Grooming Pet Bathing Gift Shop Pet Energy Work Pet Portraits Renting Venue Animal Behavior Classes Holistic Care Agility Training $35/ Day $45/ Day $30/ Session $10/ Session Ranging from foods, toys, accessories, and FETCH101 Merchandise $30/ Session $175/ Session $500/ Event $200/ Course TBD TBD

FETCH101 is exceptional because it isn‘t an existing facility that is modified for pet care, rather an openliving concept barn-style facility built with animals in mind. The site plan contains plenty of landscaped, monitored pastures - ideal for dogs and other animals. Additionally, Fetch101 will also include an onsite, off-leash public dog park which is vital to organically bringing pet owners to the FETCH101 grounds.

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FETCH101: Business Plan

Location
The FETCH101 facility will be established in a steadily growing area in Southeast Los Angeles County on 3.5 acres of undeveloped, open land. FETCH101 will primarily service the City of Carson, Long Beach and the adjacent cities along with commuters using the 405 and 710 freeways. FETCH101 is also intent on capturing the surrounding areas including San Pedro, Rancho Palos Verdes, Lakewood, Seal Beach, and further south. FETCH101 will be located along a very busy stretch of the southbound 405 freeway, providing visibility of the FETCH101‘s facilities to commuters traveling from Orange County to Los Angeles. FETCH101‘s management has struck a deal on the previously undeveloped land that is owned by the City of Carson to lease the property with an option to purchase after 5 years. On a daily average, there will roughly 260,000 drivers who will pass by FETCH101 and the public dog park. Currently the property is owned by the City of Carson and is protected by the Redevelopment Society. The Redevelopment Society is completely open to the development of the land, as long as the eucalyptus trees are undisturbed. The City has tried to sell the property with no success and they are willing to rezone the land. The land was valued at $3 million a few years ago but since then has lost value. The City of Carson has requested various scenarios to present in order to negotiate a favorable agreement between FETCH101, the City of Carson, and the Redevelopment Society. These scenarios each change the funds that would be required for startup ranging from $500,000 to $2.5 million. FETCH101 financial model is based on a scenario where $3,000 rent is prepaid for all 5 years to the City in the first month and FETCH101 will purchase the property from the City of Carson for $1.5 million minus the prepaid rent.

Objectives
Based on in-depth observation, industry experience, and market trends, FETCH101 has identified the following sets of objectives as key to its growth:  Utilize the on-site, off-leash public dog park to position FETCH101 as the market leader in the South Bay region as the full-service, first-class animal daycare provider by marketing its added value features and convenient location. Create a model that can be expanded by franchising or by opening and operating other locations under the FETCH101 brand. Capitalize on market trends and consumer demographics to maintain high profit margins while providing upscale, transparent services.

 

Growing Market
The growth of pet products and services and projected increase in dollars spent on pets. A large portion of this growth is non-medical pet services such as pet grooming, day care, overnight care and behavioral medication as the consumer‘s pets are treated more and more like a part of the family. Large retailers are entering the market adding additional pet services, realizing the huge opportunity that is available, such as PetSmart and PetCo.  According to Reuters (February 12, 2010), the economy grew at a 5.7% annual rate in the fourth quarter of 2009, the fastest clip in six years, for 2 straight quarters of growth.
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FETCH101: Business Plan
  It is reported that the pet market has fared well overall, despite economic recession, and will continue to grow. U.S. non-medical pet services is expected to grow an additional 5% compared to 2009 to aggregate over $6 billion dollars and will reach over 10% of the entire pet industry.

Management
Owner and founder, Doug Voorhees has worked at a high profile, fast paced, customer service oriented industries for more than 27 years and has earned the respect and admiration of his business colleagues and friends alike through hard work and dedication. Doug is currently a Vice President and Manager for a major financial institution managing a team of project managers across the United States. Doug has extensive knowledge in Treasury Management, Project Management, Product Management, and Client Relations. Doug has what it takes to make this venture extremely successful. He will count on his reputation to exceed expectations while continuously establishing an active client base. To achieve his objectives, FETCH101 will use a combination of cash reserves on hand as well as long-term financing. This financing will be paid back from the cash flow of the business, collateralized by the assets of the company, backed by personal integrity, experience and a contractual guarantee from the owner. Start-up costs will be used to secure real estate, (lease with option to purchase) purchase fixed assets, supplies, advertising, and opening cash on hand.

Competitive Landscape
Indoor/Outdoor Facility THE PET SET Indoor Only Supervision Individual Space Yes Daily Care Group Playtime Yes Webcam Behavioral Modification Additional Service None Additional Service Additional Service

Day Only

MAR MEL INN SUNNY DOG PLACE BARK! BARK!

Outdoor Only Indoor/Outdoor Indoor

Day Only 24/7 Day Only

Yes Yes Yes

No Feedings, No Walks No Walks, 2 Feedings No Walks, Medicine Leash. Offleash, 2 Feedings, Medicine Leash, 2 Feedings, Medicine Leash. Off-leash, Feedings, Medicine

Yes

Yes Yes Yes

No No No

ALL STAR PET RESORT

Indoor

24/7

Yes

Yes

No

None

FETCH101

Indoor/Outdoor With open field and dog park

24/7 With live steaming webcams

Yes

Yes

Yes

Added Value

FETCH101 has a clear competitive advantage over its competitors because it has superior facilities, and provides a higher quality of care for the animals. Additionally, FETCH101 provides a wider range of services at a single convenient location located in the path of 280,000 commuters daily.

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FETCH101: Business Plan
Value Proposition
FETCH101 has summarized its value proposition that pertains to investors, future customers, and future business partners below. Every offering below is something that competitors cannot claim to do in its entirety. In fact, a lot of the concepts FETCH101 plans to materialize are new to Southern California in terms of animal care. FETCH101 separates itself from other facilities and will plan to continue to stay ahead with forward-thinking and continuous research into new products and services.

Superior Animal Care Convenient Location off Major Freeway Multiservice Facility Environmentally-Friendly / Green Business Inclusive Pick-up / Drop-off Service Public Off-Leash Dog Park on Grounds Indoor/Outdoor Facilities with Natural Grass 24/7 Care with Web Cameras available to the public Open-Living Concept

Factors for Success
The 5 factors below are fundamental to the success of FETCH101. It is imperative that these factors do not change in the business unless something unforeseen forces FETCH101 to changes it business model.

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FETCH101: Business Plan
Revenue Strategy
The revenue streams are calculated with a conservative occupancy rate of the available space starting at 10% and accumulating as FETCH101 becomes more established and marketing efforts take off. Another key assumption is that all additional services have been projected very conservatively. In addition, with those conservative figures and a 50% (50 dogs) occupancy rate FETCH101 will have positive operating cash flows. FETCH101‘s monthly operating expenditures are speculatively calculated on the higher end to be almost $57k. If FETCH101 maintains 90% occupancy with the same OPEX sooner than the expected sales growth, FETCH101 has the potential to pay off its loan much sooner than expected.

Startup Costs
Startup Expenses Buildings/Real Estate Capital Equipment Pre=Paid Expenses Admin Expenses Opening Inventory Initial Marketing Costs Total Startup Costs These figures are based on a $800,000 loan, which covers the development of the land, the on-site public dog park, and the erection of the barn with renovations, modifications and other initial costs for doing business while leaving over $220K for cash contingencies. An important note is that in this scenario, the lease is paid 100% upfront. With no additional payments the loan will be paid off in full on time within 5 years.

$286,432 $30,000 $192,000 $10,000 $15,000 $35,000 $ 573,432

FETCH101 is looking for a $800,000 million loan which will cover all the start up costs and leave $230,000 of cash reserves. The business plan contains detailed financials that show FETCH101 reaching positive operating cash flows in Month 10 with only 50% occupancy.

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FETCH101: Business Plan
2.0 Business Summary
Company Profile
FETCH101 will be structured as a limited liability corporation in the State of California, owned by founder and principal Doug Voorhees. The Company will operate from Carson, California at a developed piece of prime land leased from the City of Carson to FETCH101 on special terms with the option to purchase at the end of 5 years. The land itself will be developed for FETCH101 facilities and an on-site public dog park. Doug is currently negotiating with the City of Carson as to the terms of the agreement. The city currently has no plans for this piece of property and is inviting to FETCH101 to submit their project proposal and is ready to rezone to its purposes. Part of the appeal for the City of Carson to be involved in this project is the public benefit of a free, public off-leash dog park for the Carson community to use, as well as the tax revenue generated from this unique business located in a highly visible location off the 405 Freeway. It brings positive publicity to the City of Carson and its visitors who will spend money at FETCH101 and local businesses. Doug, the Company‘s owner and founder, has a proven track record as a project manager in banking in addition to being an animal caregiver. Doug and his team have done extensive research and revealed an opportunity that the current competition has overlooked. Doug is passionate and driven to making this business model and its services accessible to all pet owners in the Southland. As outlined in the management summary of this business plan, Doug has developed a sound organizational structure to effectively execute the strategies that ensure the long-term viability of the corporation. FETCH101 will provide pet care services and peace of mind for pet owners. FETCH101‘s service offerings are unprecedented for the Southern California market. There are other pet day care facilities that provide overnight care with a variety of other services. But FETCH101 has studied the competitors and realized their weaknesses to come up with a formula for success that creates space within the market for growth and future expansion. Product Offerings Services Pet Day Care Overnight Care Pet Grooming Pet Bathing Gift Shop Pet Energy Work Pet Portraits Renting Venue Animal Behavior Classes Holistic Care Agility Training $35/ Day $45/ Day $30/ Session $10/ Session Ranging from foods, toys, accessories, and FETCH101 Merchandise $30/ Session $175/ Session $500/ Event $200/ Course TBD TBD

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FETCH101: Business Plan

Stage of Development FETCH101 is currently in the advanced phases of start-up. All partnership and alliances are in place and the business will be operational once funding has been received. FETCH101 has handpicked its location pending approval from the City of Carson‘s City Planner. Management has also setup its construction and build-out plan for the facilities. Furthermore, FETCH101 has developed its strategy and growth plan. Although support staff has not been hired as of yet, management has recruited the most qualified candidates and will be ready to hire when business is operable. FETCH101 has also assembled a high-quality advisory board consisting of industry and community specialists, which is detailed in this plan. Mission Statement Simply stated, “FETCH101’s mission is to provide a safe, healthy, environmentally friendly and entirely fun atmosphere with an abundance of interaction between dogs and humans. Fetch101 will be the leader in the market of pet care for the Southland community by providing a safe, positive, playful environment for pets. The operations will instill confidence in pet owners with our ability to personally care for their pets rather than boarding them in cages..”

Objectives
Based on in-depth observation, industry experience, and market trends, FETCH101 has identified the following sets of objectives as key to its growth:  Position FETCH101 as the market leader in the South Bay region as a full-service, first-class animal care provider by marketing its added value features, convenient location, as well as its on-site, free, off-leash public dog park. Create a business model that can be expanded by franchising or by opening and operating other locations under the FETCH101 brand. Capitalize on market trends and consumer demographics to maintain high profit margins while providing upscale, transparent services.

 

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FETCH101: Business Plan

Keys to Success
Both the short-term and long-term success of FETCH101 rests in the ability to satisfy the needs of the market above and beyond what current service providers are doing. These factors create a competitive advantage for FETCH101. Fundamentally, success lies in the following elements:

Capital Requirements
Startup Expenses Buildings/Real Estate Capital Equipment Pre=Paid Expenses Admin Expenses Opening Inventory Initial Marketing Costs Total Startup Costs Total start-up requirements include legal costs, 3.5 acres of real property, (5 year lease with option to purchase) erecting a prefabricated, solid wood structure, utilities, website design, logo design and other business related expenses. There will be many advertising expenses in the beginning that will promote the service and this expense will decrease as months economics of scale are reached and the cost to acquire new customers‘ decreases. Start-up inventory will be mainly grooming supplies, food for the pets and other supplies such as pet bedding. Assets will be the prefabricated structure, kennels, bathing facility and play structures for the dogs. $286,432 $30,000 $192,000 $10,000 $15,000 $35,000 $ 573,432 Loans will be needed to start up the company as well as the investment. The start-up costs are to be financed as long-term financing totaling $800,000.

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FETCH101: Business Plan
Location and Facilities
The FETCH101 facility will be established in a steadily growing area in Southeast Los Angeles County on 3.5 acres of undeveloped, open land. FETCH101 will primarily service the City of Carson, Long Beach and the adjacent cities along with commuters using the 405 and 710 freeways. The demographics show growing condominium developments throughout downtown Long Beach. FETCH101 is also intent on capturing the surrounding areas including San Pedro, Rancho Palos Verdes, Lakewood, Seal Beach, and further south. Because FETCH101 will be located on along a very busy stretch of the southbound 405 freeway, commuters traveling to and from Orange Counties will also have visibility to the FETCH101 facility. Below, you will find the traffic figures. On a daily annual average, there will roughly 260,000 drivers who will pass by FETCH101 and the public dog park.

Route

City & Interchange/Junction

405 405 405 405 405 405

Long Beach, Wardlow Rd/Long Beach Blvd Long Beach, Jct. Rte. 710, Long Beach Freeway Carson, Alameda St Carson, Wilmington Ave Carson, Carson St Carson, Avalon Blvd

Peak Hour* South of Exit/Jct. 20,700 21,100 18,800 18,600 17,600 17,200

AADT** South of Exit/Jct. 295,000 295,000 294,000 285,000 260,000 254,000

Peak Hour* North of Exit/Jct. 21,100 18,800 18,600 17,600 17,200 18,900

AADT** North of Exit/Jc 295,000 294,000 285,000 260,000 254,000 272,000

* Peak Hour Traffic Included is an estimate of the "peak hour" traffic at all points on the state highway system. This value is useful to traffic engineers in estimating the amount of congestion experienced, and shows how near to capacity the highway is operating. Unless otherwise indicated, peak hour values indicate the volume in both directions. A few hours each year are higher than the "peak hour", but not many. In urban and suburban areas, the peak hour normally occurs every weekday, and 200 or more hours will all be about the same. On roads with large seasonal fluctuations in traffic, the peak hour is the four near the maximum for the year but excluding a few (30 to 50 hours) that are exceedingly high and are not typical of the frequency of the high hours occurring during the season. ** AADT (Annual Average Daily Traffic) Annual average daily traffic is the total volume for the year divided by 365 days. The traffic count year is from October 1st through September 30th. Very few locations in California are actually counted continuously. Traffic Counting is generally performed by electronic counting instruments moved from location throughout the State in a program of continuous traffic count sampling. The resulting counts are adjusted to an estimate of annual average daily traffic by compensating for seasonal influence, weekly variation and other variables which may be present. Annual Average Daily Traffic is necessary for presenting a statewide picture of traffic flow, evaluating traffic trends, computing accident rates. planning and designing highways and other purposes.

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FETCH101: Business Plan
In the following satellite images, FETCH101‘s future location is highlighted in the red box.

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FETCH101: Business Plan
Carson Fact Sheet A comparison of selected Southern California cities and unincorporated Los Angeles County shows Carson is the most competitive city in the South Bay because of its low cost of doing business, low crime and great location. (See the graphs below)     Carson Carson Carson Carson is the only city in the South Bay with no utility user taxes. (see below) Has the second lowest business license fees of the South Bay cities. (see below) has the lowest Part 1 crime rate of those cities in the L.A. County basin. (see below) has the lowest development and planning fees of the South Bay cities. (see below)

Based on annual tax for the first $10 million in receipts or the first 100 employees, as applicable, for a manufacturing company.

Based on all Part 1 crimes per 1,000 population per State of California Dept. of Justice, L.A. County Sheriff's Office, individual police depts.; figures are based on FBI definition of Part 1 crimes, which include murder, forcible rape, robbery, aggravated assault, larceny-theft, motor vehicle theft and arson.

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FETCH101: Business Plan

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FETCH101: Business Plan
3.0 Products and Services Summary
Fetch101 is set apart from other animal service facilities due to their limited services. FETCH101 conducted first-hand research by interviewing pet owners within the local communities, as well as pet supply retailers, city-owned animal shelters and animal rescue centers. FETCH101 has concluded that the communities‘ desire for additional services that fill gaps in regards to an open-living concept facility with open pastures that values convenience, animal health, and the environment‘s welfare, above everything else. This first-hand research concluded that pet owner‘s primary frustration was there because there is no convenient service provider that met all needs in one place. The focus of FETCH101 is animal day care and overnight care (long-term and short-term). FETCH101‘s business atmosphere will be clean, environmentally-friendly, sociable, and upscale. Customers will be comfortable leaving their pets for short or long periods of time. FETCH101‘s personal touches will include free grooming for long term overnight care, birthday parties, birthday cards and daily report cards for each registered pet. Also, monthly newsletters and social media will bring the community of pet owners together. The FETCH101 business will offer 24-hour operations which is a unique concept in this type of industry. Most competitors provide services during the day but do not have someone on-site overnight. By providing staff 24/7, owners can be confident that their pets are being supervised and cared for at all hours of the day and night.

Services Pet Day Care Overnight Care Pet Grooming Pet Bathing Gift Shop Pet Energy Work Pet Portraits Renting Venue Animal Behavior Classes Holistic Care Agility Training $35/ Day $45/ Day $30/ Session $10/ Session Ranging from foods, toys, accessories, and FETCH101 Merchandise $30/ Session $175/ Session $500/ Event $200/ Course TBD TBD

FETCH101‘s pricing will be close to the competition in order draw interest and appeal. However, once FETCH101 has achieved a customer-base, pricing will increase and this increase will be justified due to broad range of products and services that no other care facility can provide. Currently, pet care competitors are in the $25-40 range for day care services.

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FETCH101: Business Plan
Products and Services Descriptions
FETCH101 will be considered an upscale, full-service animal care facility. FETCH101 will offer a wide range of services, not limited to dogs or cats. The services provided to FETCH101‘s customers are above and beyond what the competition currently can offer. Core Services are as follows: o Day Care: 2+ acres for a fun, safe atmosphere for pets to spend the day exercising and enjoying the company of other pets, both indoor and outdoor while owners are away. For every 15 dogs there will be at least 2 staff members. This will also include special requests for pets with special needs including administering medication, physical therapy, assisting with recovery from surgery, handicaps, etc. Remote Pick-up / Drop-Off: Provide satellite pick-up and drop-off centers in surrounding cities in order to accommodate pet owners busy work schedules and transport pets to and from the FETCH101 facility for day care service. Overnight Care: Customers can leave their pet for as long as necessary for 24 hour care and attention. Various accommodations for dogs and cats will be available ranging from open living, basic kennels to private designer ‗Pet Homes‘ as well as ‗Kitty Condos‘, all with valet services. Pet Energy Work: Offer pet energy services such as Reiki by licensed therapists. Pet Grooming: On-site professional pet grooming services by a bonded groomer. Wash Your Own Pet: Fetch101 will provide bathing tubs, brushes, environmentally-friendly and pet-safe shampoo, dryers and aprons for customers who would like to bathe their own pets. Gift Shop: On-site and on-line stores with specialty pet-related gifts and products including pet food, toys, beds, and other products. Off-Leash Dog Park: Provide 1 acre of land for pet owners to bring their pets and interact with them directly on-site in order to promote healthy pets as well as to create more marketing opportunities for Fetch101. Special Events: Participation in community charity events, provide pet field trips to local dog beaches, coordinate pet birthday parties or other special occasions on-site, etc. Animal Behavior Courses: Certified animal training courses for pets ranging from beginner to intermediate and advanced. Pet Portraits: On-Site portrait for pet owners and their pets.

o

o

o o o

o o

o

o

o

Added Services will be the following: o In-Home Animal Care: Bonded staff will go to pet owner‘s private homes to feed, walk, play, and check on pets as often as requested. Mail will be picked up and plants watered as well, if requested. Education Services: Partner with local academic schools and city/state owned animal care facilities in order to provide on-site education on pet care and wellness. Pet Therapy: Partner with local retirement centers, hospices and assisted living centers to provide pet therapy and promote a healthy lifestyle by using consenting customers certified pets.
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o

o

FETCH101: Business Plan
o Pet Agility Training: Contract with service provider to train pets on obstacle courses to increase stamina and endurance. Potentially, FETCH101 will put together competitions in order to promote community interaction.

Environmentally-Friendly Facilities
FETCH101 will be the first environmentally-friendly, sustainably designed and operated dog day care and public Dog Park in Southern California. This will be a key distinguishing feature from other pet day care centers and public dog parks nationwide. The FETCH101 facilities will be built with USGBC‘s LEED Credit system in mind in order to maintain the highest performance in energy use, water conservation, indoor air quality, working environment, protection of plant-life and wildlife in and around the facility. Sustainable Design: o Partner with Southern California Edison (SCE) to install a photovoltaic array to produce energy and sell back extra to SCE. o Use recycled/reclaimed water for all irrigation allowable. Install a water catchment system to reduce storm water runoff and utilize this water as a secondary water source for operations. o Partner with the County of Los Angeles and participate in their ―1 Million Tree‖ program by planting at least 20 trees throughout the FETCH101 property in order to absorb CO2 emissions and produce fresh oxygen back to the community, while beautifying the grounds. o Optimized use of lighting and passive solar for day lighting and reduction in heating/cooling energy. o Work with City of Carson‘s Redevelopment and Preservation society‘s in order to minimize the disturbance to the site being developed including the use of recycled, repurposed, and reclaimed materials. o Comprehensive recycling and composting programs to drastically cut waste while producing organic fertilizer for use on the grounds.

Technology Systems
FETCH101 will maintain the latest Windows and internet capabilities, including complete e-mail functionality, on-line reservations, animal web cameras, which will allow pet owners to view their pets from around the world, as well as the purchasing of products and services online. FETCH101‘s transparency will also allow pet owners to provide information, answer questions and get feedback from customers and staff. An interactive Web page will be developed that will provide information and maximum exposure of available services. This website will be developed so that pet owners can access the site from home computers, laptops as well as compatible cellular phones. Online Reservation System Customer Management Indoor/Outdoor Security System with web-enabled digital camera functionality Integrated web-enabled pet cameras accessible via website Ecommerce Shopping Tool

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FETCH101: Business Plan
4.0 Market Analysis Summary
Industry Analysis
There are competitors that offer pet day care and overnight care in and around the City of Carson. However, these facilities are not at as convenient as FETCH101, nor do they offer a free, on-site public dog park. Additionally, these facilities have much smaller environments which typically comprised of all concrete and consequently restricts the quality of the care and exercise that a pet requires. FETCH101 will be situated on 3.5 acres of land that will be structured in a way to ensure ample exercise and socialization for pets as well as promote community involvement and safety for guests and employees. Pet day care is a relatively new business that, unlike FETCH101, is offered primarily to dogs. There are five pet day care facilities in the Carson and Long Beach and surrounding areas:

The Pet Set Mar Mel Inn Kennel Kare Bark! Bark! All Star Pet Resort

North East Long Beach Central Long Beach Central Long Beach Central Long Beach South Torrance

Each of the competitive facilities has restrictions including:       Restricted pet drop-off and pick-up times Do not provide an on-site attendant 24-hours a day Do not provide webcams for transparency Do not have a free, on-site public dog park Limited to certain animals Smaller facilities with no open fields

There is a combination of roughly 21 grooming and boarding facilities and 6 dog training and obedience facilities throughout the surrounding communities. However, FETCH101 will offer complete and total services at one location which is extraordinary within a 45-mile radius. The only substitute to FETCH101 would be pet owners choosing to leave their pets home alone, unattended. FETCH101 will target these individuals by offering incentives for them to try new services and experience the benefits offered at Fetch101 including, but not limited to a free off-leash dog park. Owners will be able to drop their pets off for a day of care and exercise and when retrieved, the pet will be exercised, socialized, bathed and groomed. Thus, meeting the busy lifestyle of today‘s professional class. FETCH101 will be a One-stop shop, providing high-quality pet care with customer convenience 24 hours a day.

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FETCH101: Business Plan
Competitive Landscape
Indoor/Outdoor Facility THE PET SET Indoor Only Supervision Individual Space Yes Daily Care No Feedings, No Walks No Walks, 2 Feedings No Walks, Medicine Leash. Off-leash, 2 Feedings, Medicine Leash, 2 Feedings, Medicine Leash. Offleash, Feedings, Medicine Group Playtime Yes Webcam Behavioral Modification Additional Service None

Day Only

Yes

MAR MEL INN

Outdoor Only

Day Only

Yes

Yes

No

SUNNY DOG PLACE BARK! BARK!

Indoor/Outdoor Indoor

24/7 Day Only

Yes Yes

Yes Yes

No No

Additional Service Additional Service

ALL STAR PET RESORT

Indoor

24/7

Yes

Yes

No

None

FETCH101

Indoor/Outdoor With open pasture and offleash dog park

24/7 with live streaming webcams

Yes

Yes

Yes

Added Value

Market Trends o o According to Reuters (February 12, 2010), the economy grew at a 5.7% annual rate in the fourth quarter of 2009. The fastest clip in six years, for 2 straight quarters of growth. It is reported that the pet market has fared well overall despite economic recession and will continue to grow.

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FETCH101: Business Plan
The pet market‘s advantages are many, with the emotional impact of the human/animal bond topping the list, and perhaps even strengthening during the uncertain economic times. Simply put, many pet owners view their pets as members of the family, with regard to which they would no more take lightly any serious cutbacks on spending than they would for their kids, and in many cases only after reducing spending on their own less essential needs.    US retail sales of pet products in the US will increase by 6% even with current economic conditions. Majority of pet owners are spending the same if not more on their pets despite downturn in the economy. Non-medical pet services is a growing a portion of the pet market and has no intentions of slowing down.

The charts and graphs below illustrate the growth of pet products and services and projected increase in dollars spent on pets. A large portion of this growth are non-medical pet services such as pet grooming, day care overnight care, and behavioral medication as the consumers pets are treated more and more like a part of the family.

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FETCH101: Business Plan

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FETCH101: Business Plan
The graph below shows how large retailers are entering the market for additional pet services realizing the huge opportunity that is available. Fetch101 does not consider these competitors because they cannot offer a cage-free environment with 3.5 acres of open pastures which includes an on-site off-leash public dog park which pet owners have identified are key elements in their pet care provider selection.

Marketing Sustainability
For several years, a number of smaller companies have publicly positioned heavily along sustainable or ―green‖ lines, including ‗Worldwise‘, which bills itself as ―an environmental consumer products company guided by the principle of sustainability,‖ creating products from recycled materials including plastic bottles and corrugated cardboard scrap. But the movement is also in full force among larger companies, which are increasingly committing to sustainability. 2009 was a banner year for sustainable initiatives. In early 2010, Debbie Phillips-Donaldson, Editor-inChief of ‗Petfood Industry’ magazine, told Packaged Facts that ―Pet food manufacturers and suppliers are beginning to understand that ―green‖ is not just about PR value, but that green equals green—that is, that sustainable initiatives make good business sense, too.‖ Bearing this out, during 2009 Cardinal Labs completed the conversion of its manufacturing and distribution center in Azusa, CA to include such energy-independent features as 100% solar power. During 2010, Cardinal is expanding its green commitment in two phases, converting its dog food and treat distribution center in Baldwin Park, CA to solar power, and constructing a 70,000-square-foot distribution center run on geothermal and solar power.

Other recent sustainable initiatives involve the pet market‘s two biggest players: Mars and Nestlé Purina. In September 2009, Mars opened what the company has hailed as the first sustainable pet food plant in
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FETCH101: Business Plan
the world, a 305,000-square-foot manufacturing facility that has received LEED Gold certification from the United States Green Building Council. During the past few years, Mars has also taken many other steps to reduce its environmental impact, including expanding its plant recycling systems, modifying packaging from paper to woven polypropylene, and reducing solid waste, thereby eliminating 4,500 tons of packaging per year and 2,300 tons of carbon dioxide emissions. Eco-friendly appeals are also advancing in the pet services market, and this will be a much larger point of interest in the years ahead in the luxury boarding segment especially, as providers seek to differentiate from the competition. One of the oldest ―green‖ operators is Stay-N-Play Pet Ranch, located outside Austen, TX, which has been in business for over 12 years. Describing itself as an all-natural facility that does not use any chemicals ―so your pet is staying in a safe, environmentally friendly atmosphere,‖ ecofriendly earmarks of the 60-room resort include an open-air design in structure and placement, rainwater harvesting, an aerobic septic system, biodegradable waste bags, organic cleansing agents, human-grade food, and herbal treatments.

Looking ahead, green is not just a short-term trend, but a broad-based societal shift that will come to define the way virtually all companies do business within the next decade. A key factor is the Obama
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FETCH101: Business Plan
administration, whose commitment to supporting environmental responsibility promises to lend this movement considerable financial support and dynamism. There will be a tremendous opportunity for pet market participants to assume a leadership position in the green movement by positioning pets as a primary connection to the earth and all things natural.

Multiservice/Convenience
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FETCH101: Business Plan
The move toward multiservice pet care is coming to define the pet services market. Continuing trends established during the recession, 2010, and 2011 indicate that the multiservice trend will increasingly merge with consumer demand for value, since obtaining multiple services and products in one place can help to save on time and gas. This trend is apparent in all of the service categories, such as; veterinary, grooming, boarding, training and pet-sitting— as specialists add on services and retail departments in order to become one-stop destinations. Running in tandem with, and helping to drive, the multiservice shift in pet boarding and daycare is the ongoing expansion by PetSmart, which offers veterinary, boarding, grooming and training services along with a multitude of retail items. At the same time, many smaller providers are also offering a broader array of services, in part to help protect against the invasion of pet specialty retailers. By working this angle, a number of pure-play service operators are gaining ground, led by Best Friends Pet Care, which boasts 44 locations in 19 states. For all parties, the goal is not just to attract new customers but also to grab a larger share of existing customers‘ business—by providing doggie daycare services to grooming clients, for example—a formula that adds up to bigger and higher margin sales for operators and to muchappreciated shopping convenience for pet owners. It also allows for important synergies, as in the case of veterinary assistants‘ providing free pre-grooming exams resulting in more business opportunities. Removing any doubt as to the direction in which the pet services market is moving, in April 2008 the American Boarding Kennel Association (ABKA) changed its name to the Pet Care Services Association (PCSA) to better reflect the scope of its membership. According to Joan Saunders, CEO of the 3,100member PCSA, ―Our association has set the standard for dog boarding facilities, but that no longer represents the entirety of our membership. Our members now offer expanded services such as daycare, grooming, training, retail, services for special needs pets, lodging services for cats, pool time, nature walks, exercise programs, and luxury spas.‖ In order to gauge industry trends and support market growth, during 2009 the PCSA conducted a member survey, garnering responses from approximately 290 facility operators in the United States and Canada. According to the survey, 91% of PCSA members offer dog boarding, 78% offer dog daycare, over twothirds (69%) offer grooming services, and almost half (47%) offer dog training services, with 49% and 29% having added the latter two services in the past five years, respectively. Dog training tops the list of service add-ons providers planned to add in 2009, cited by 63% of survey respondents, followed by grooming (27%), daycare (12%), boarding (10%) and veterinary (7%).

SWOT Analysis
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FETCH101: Business Plan
STRENGTHS Excellent location with convenient freeway access Pick-up/Drop-off delivery service Multiservice facility with on site public dog park Green Products/Services appeal to consumers OPPORTUNITIES No barriers to enter No industry standard Opportunities for expansion into other areas of the country. Establish brand by community impact through service and special events WEAKNESSES No established brand No established customer-base Relatively large investment for brand-new facility

       

  

  

THREATS Large retailers expanding services Imitation from competitors City of Carson‘s negotiations on piece of land.

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FETCH101: Business Plan
5.0 Implementation Summary
Through development of a strong promotions approach and a focused, integrated marketing communications strategy, FETCH101 intends to be regionally focused for Southern California in order to meet demand and gauge capacity. Initially, FETCH101 will launch a full-scale marketing promotions program with direct-mailers, press releases, community outreach, search engine optimization, media buying including billboards.

Year 1 Marketing Budget
Promotional Flyers  For handouts and distribution to local businesses Radio  Local radio buys Web  Banner Advertisements  E-mail Marketing  Viral Multimedia Memberships  Chamber of Commerce  National Dog Groomers Association  Pet Services Association  SC Veterinary Medical Association  Long Beach Green Business Association Affiliations  SC Regional Occupational Center  California‘s Green Workforce Coalition  Human Society  PETA  Pet Orphans of Southern California Special Events  Pet Parties at the FETCH101 Dog Park  FETCH101 Open Houses Direct Mailers  In surrounding communities Billboards  Off 405 Freeway Search Engine Optimization  Google Adsense $10,000 $5,000

$2,500

$2,000

$2,000 $5,000 $15,000 $18,000

Total Budget

$69,500

$10,000

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FETCH101: Business Plan
Year 1 Objectives     Add Veterinary Services - To perform low-cost spay and neuter clinics and pet vaccinations on specified days as well as tend to any unforeseen emergencies. Monthly newsletter – To promote up-coming programs being offered by FETCH101 and the community. Daily play hour – To encourage interaction between FETCH101 neighbors and their pets. Wireless Internet – To provide pet owners with the ability to stay connected while interacting with their pet at the public dog park.

Year 3 Objectives      Mobile Pet Care Trailer will provide pet care by the hour at various community events Mobile pet washer Exercise pool to provide extensive exercise and rehabilitative services to Dogs Sub-Contract with a local veterinarian to allow pet owners the ease of veterinary care on site. Add two satellite drop-off / pick-up centers in two additional citites.

Value Proposition
Management has identified several key factors on which to differentiate the business from regional competitors.

Superior Animal Care Convenient Location off Major Freeway Multiservice Facility Environmentally-Friendly / Green Business Inclusive Pick-up / Drop-off Service Public Off-Leash Dog Park on Grounds Indoor/Outdoor Facilities with Natural Grass 24/7 Care with Web Cameras available to the public Open-Living Concept

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FETCH101: Business Plan
Marketing Strategy
FETCH101 intends to commit to a significant annual marketing and advertising budget throughout the scope of this business plan and the life of the enterprise. The budget for sales and marketing expenses is currently based on estimated needs, but will be adjusted as needed as the business develops and key vehicles and promotional venues are further cultivated. FETCH101 will begin with a general corporate brochure highlighting services and benefits. This brochure will be developed as part of the start-up expenses and distributed to large businesses, restaurants, local veterinarians, pet stores, neighborhood dog parks, beaches, real estate agencies, fire departments, the Humane Society, and various home owners associations as well as local community supported events. There will be a direct mailing to registered pet owners and a website that will be created. Literature and mailing for the initial market forums will be very important, with the need to establish a high-quality look and feel in order to create a trusting sense of professionalism. Our marketing strategy includes transparency to satisfied customers. Word-of-mouth marketing is the most cost-effective and most influential tool. When a customer leaves with a happy pet, knowing that it has had a fun-fulfilled day, FETCH101 has created a raving fan. Part of the strategy is to promote a trial offer for pet owners to take advantage before prices increase. Local TV networks will be proactively contacted in order to feature FETCH101 as a new service to the community. Direct mail will be sent to all registered pet owners in the surrounding communities. Brochures will be distributed to hotels, restaurants, condominiums, pet stores, coffee shops, local veterinarians, dog parks and dog beaches. Advertising in local newspapers, such as the Daily Gazette, Press Telegram, and various pet publications and internet sites will be established. Additionally, FETCH101 will secure vendor booths at various events throughout the Los Angeles and Orange counties. A key marketing strategy that FETCH101 will offer is an on-site, free public, off-leash dog park, where the community can bring their pets to interact in a safe, friendly environment. By having the dog park within the same grounds as the FETCH101 facility, pet owners will be face to face with the products, services, staff and surroundings that FETCH101 has to offer and this will organically market the business.

Promotional Strategy       10 day care visits = one free overnight visit gift certificate. 10 overnight visits = one free overnight weekend gift certificate. 10 wash your own = one free day visit gift certificate. Three referrals = one free day care visit gift certificate. Monthly drawing = one free overnight visit. Create specified packages: o Two days, one night and one wash for a special discount price. o Weekly / Monthly / Yearly packages with guaranteed availability Family discount rate for multiple pets. Promotional Items – toys, Frisbees, collars, etc.

 

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FETCH101: Business Plan
Services Forecast
The following forecast outlines the revenue activity generated from FETCH101‘s business model over the five-year period outlined in this business plan. These revenue projections do not show growth in the ancillary services offered by FETCH101. The design of these projections is focused on day care and overnight care to set a base of operating cash flow. These other services will grow naturally as FETCH101 has access expanding customer-base. In this scenario the day care and overnight care are also not expanded from year to year. If these two services are expanded, revenue can directly grow as well.

Year 1 Day Care Overnight Care Pet Grooming Wash Your Own Pet Pet Energy Work / Reiki Pet Agility Work Gift Shop Pet Portraits Animal Behavior Classes Venue Rent
Cost of Sales

Year 2 $882,000 $165,600 $8,640 $4,320 $12,960 $3,600 $3,600 $4,200 $9,600 $11,500 ($20,904) $1,085,116

Year 3 $957,600 $183,600 $8,640 $4,680 $13,398 $3,600 $12,960 $10,800 $4,200 $9,600 ($22,852) $1,186,226

Year 4 $1,149,120 $220,320 $10,368 $5,616 $16,077 $3,870 $15,552 $12,960 $5,040 $11,520 ($27,413) $1,423,030

Year 5 $1,378,944 $264,384 $12,442 $6,739 $19,292 $4,160 $18,662 $15,552 $6,048 $13,824 ($32,887) $1,707,161

$441,000 $56,700 $4,440 $4,320 $6,660 $1,850 $10,800 $4,200 $9,600 $12,000 ($10,425) $541,145

Gross Profit
  

Conservative occupancy rates have been projected for space for 120 dogs and 20 cats for day care as well as 20 animals for overnight care. The days available for day care and overnight care is 20 possible in a month. Occupancy rates for projects range from 25% to 95%. All services have been conservatively projected with growth in mind.

Exit Strategy
The management team is committed to the long-term viability of the Company and its innovative concept. As such, Doug intends to effectively manage and operate the business to ensure its success. If the projections are not met, and demand is not sufficient, and/or the default on financed customers causes FETCH101 to not operate with a profit, equipment and inventory can be liquidated to cover the cost of the remaining loan amount. There also might be licensing and franchising opportunities to exit the business for any reason. In addition, the City of Carson‘s agreement with the land lease/purchase adds another variable if the business must be vacated. However, with the projected success, the Company may entertain a possible merger with or sale to one of its alliances or to a competitor as a potential exit strategy for the principals.

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FETCH101: Business Plan
6.0 Organization Summary
The management team has developed the following personnel plan and hiring schedule based on estimated daily and weekly sales projections. The management team will offer competitive pay scales for the type of work and the region.

Management Team
Doug Voorhees, Owner, Founder, and President

Personnel Plan
FETCH101 will be organized and managed in a creative manner to generate very high customer satisfaction. FETCH101 will create a working climate conducive to a high degree of personal development and satisfaction for employees. A policy manual will be developed and implemented. Job descriptions will be developed to identify necessary competencies and skill sets. Team oriented professionals with common goals and diverse backgrounds will be employed. FETCH101 will also use volunteers to provide ground supervision, dog interaction as well as administrative and custodial duties. FETCH101 will conduct regular staff meetings to discuss ideas, suggestions, and operational procedures. The FETCH101 staff will be required to attend ongoing animal care training. Seminars will be held for the FETCH101 staff and will develop an employee recognition program. As the business grows, the company will eventually offer an employee benefit package to include health and vacation benefits. Initially, FETCH101 will be managed by owner/operator, Doug Voorhees along with two individuals hired part-time to provide assistance with some of the clerical duties until the client base grows, revenues increase and additional resources are required. Additionally, there will be one employee that will provide overnight care. The long term personnel plan will be as follows:   One manager to oversee and fill-in for all FETCH101 facility job roles. Two front desk receptionists to greet customers, intake pets, receive payments for services/products, set appointments, answer phones, and maintain client files both in writing and on line. Two to four playground supervisors to feed and water pets, keep areas clean, walk and exercise pets, greet guests, maintain peace, collect pets at check-out time. Two will be on staff full time and two will work part time. Additionally, there will be one staff on site after business hours. For FETCH101 to be a 24-hour facility, a total staff of 10 full time and 4 part time staff will be employed. This number will grow as the business grows. Contract Employees:
       Confidential One Veterinarian

   

One Veterinary Technician One Pet Groomer One Behavioral Trainer Two Pet Energy Specialists Agility Training Specialist Pet Photographer
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FETCH101: Business Plan
Employment assumptions for the first year are; Owner/operator Doug Voorhees will be the on-site manager, 2-3 pet playground supervisors (paid and/or volunteer) and one overnight person until the business establishes a strong client base. The veterinary Tech, groomer, trainer, photographer and pet energy specialists will work on contract, providing a portion of their revenue to FETCH101. During the second year, an office receptionist, two additional playground supervisors and a groomer will be added to the staff.

Key Relationships
Becoming a member of the City of Carson and Los Angeles Chamber of Commerce gives automatic credibility to FETCH101. This will create other business opportunities for FETCH101 while giving access to service providers, business leaders, and other potential alliances. Through these networking opportunities will serve as another way to publicize the business locally.

The Southern California Regional Occupational Center, also known as SoCal ROC is a leader in providing current and relevant Career Technical Education programs that are meeting today‘s job demands and careers of the future. In partnership with the California public school system, the SoCal ROC programs are offered to high school students as well as adults in the South Bay and surrounding communities. FETCH101 will partner with SoCal ROC to offer pet care, pet grooming, and pet therapy to enhance their curriculum and offer internship and employment opportunities to the students and adults in the South Bay. Not only will this relationship give FETCH101 access to potential employees and provide visibility within the community in order to establish credibility, but FETCH101 also benefits by obtaining skilled help from un-paid interns. Courses are offered based on the following criteria: 1) 2) 3) 4) Industry standards and identified career area shortages Meet high school graduation requirements Meet UC/CSU college entrance requirements Part of a sequential pathway

EcoTuesday is a structured networking event for sustainable business leaders that takes place on the fourth Tuesday of each month in cities across the country. This is the perfect group for Fetch101 to partner with and demonstrate FETCH101‘s sustainability to individuals who reward businesses for those purposes.

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FETCH101: Business Plan
California's GREEN Workforce Coalition envisions a thriving, full employment California economy driven by green industries and jobs. Innovators and employers apply green business practices; employees and entrepreneurs are adept in green workplace applications, and possess appropriate academic and technical preparation for economic success. All businesses, workforce participants, and the self-employed have ready access to a wide range of demand-driven educational resources, and opportunities for training and development in disciplines, functions, and occupations that respect the earth. By being a member, FETCH101 will have admittance to all meetings with chances to make business connections to other green businesses. The coalition has a wealth of knowledge in terms of federal and state funds that could be accessed by FETCH101 for employment training, salaries, wages, and business development.

The Carson-Gardena-Dominguez Rotary Club has already benefitted FETCH101. This club is comprised of wealthy, influential business leaders in the South Bay that look for up and coming businesses that could be potential members. FETCH101 has already initiated contact with this group with a positive response.

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FETCH101: Business Plan

Advisory Board
FETCH101 has put together a team of experts to help assist management in long-term strategy and provide knowledge and insight when challenges are faced. This team is comprised of individuals from Doug‘s personal and professional network who all have agreed to ease the decision-making process. Robert Glass – Vice President of Sales and Marketing at ‘Ascent Media’. With 10+ years at Ascent Media, Robert‘s solid understanding of sales techniques within the entertainment industry will help Fetch101 leverage the necessary tools to better expose themselves to the community in a quick and effective manner thus increasing revenue. Carly Moss - Senior Sales Officer for Southern California –‘Waste Management’. Carly‘s focus at Waste Management is on the commercial sector for four counties running from Ventura county to San Diego County and everything in between. With Waste Management‘s focus being on the community and environment, Carly will be able to help secure a very effective, efficient and environmental friendly manner in which Fetch101 deals with their waste needs in the present and future. This will help Fetch101 to be a more ‗Green‘ and ‗sustainable‘ business within the city of Carson as well as an industry leader. Brandon Carrillo - Real Estate Professional – Lee & Associates’ / City of Carson Rotary Club Member Between Brandon‘s Real Estate expertise combined with his active involvement with the City of Carson Rotary Club, Brandon will be able to ensure that Fetch101 is not only making the most beneficial decisions in regards to future development and expansion but, he will also be able to ensure that Fetch101 is aligning themselves with the City of Carson‘s mission statement in order to establish a solid partnership with the City of Carson and the communities it serves. Dr. Keith Barry - Owner & Head Veterinarian of ‘Agoura Hills Veterinary Hospital’ & ‘Calabasas Veterinary Hospital’. With Dr. Barry‘s 33 plus years as the head veterinarian and owner of two veterinary practices in the Conejo Valley, Fetch101 will be able to utilize Dr. Barry‘s expertise by ensuring that the pets served as wells as the Fetch101 campus itself are always in a good position in regards to any potential insects, parasites or diseases that might impact the health of the people or pets that frequent Fetch101. Additionally, Dr. Barry will be able to help ensure that all pets staying at Fetch101 have and maintain proper vaccinations by validating health records as well as administering any necessary vaccinations at established clinics. Amit Jain, MBA, LEED AP - Management Consultant & Sustainability Expert Amit‘s knowledge of sustainability coupled with his success as an entrepreneur and consultant to startup organizations gives FETCH101 a great advisor. Amit can help develop sustainable strategies carried out by FETCH101 and present ideas to market FETCH101 with restricted resources. Erika Stubbs - Architecture Designer – ‘Weiss Magness Architects’. Fetch101 will be able to leverage Erika‘s expertise as an architect designer in regards to not only developing the Fetch101 campus in the most beneficial way for both Fetch101 and the City of Carson but, to also stay directly connected to the City of Carson‘s future development plans for the city overall so that Fetch101 can align themselves in preparation for future expansion and development ensuring a solid partnership.

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FETCH101: Business Plan
7.0 Financial Plan
Management has developed the following financial plan to address the strategic and implementation needs of FETCH101 as summarized in this business plan. Detailed financial forecasts for the first several years have been created utilizing figures from sales projections, the pricing strategy, marketing and overhead expense estimates. Overall, the ratios for margins, growth, and expenses are in line with general comparative industry business standards. The financial plan and projections represent management‘s best efforts to forecast income and expenses, based on good faith estimates and project planning. Management is seeking 800,000, raised through conventional business financing.

Key Assumptions
The annual assumptions, which form the basis for much of the financial plan, are depicted below. Rates are based upon the best available current data for the industry segment. In general, forecasts are based on the best ability of management to project sales growth, operating expenses, and expected profits using a combination of experience, research, and industry standards. GENERAL ASSUMPTIONS
Tax Rate Payroll Tax/ Personnel Burden Merchant Account Costs (Credit Cards) % of Sales Paid by Credit Card Bad Transactions % Long-Term Loan Interest Rate Current Liability Interest Rate 40% 12.5% 1.89% 100% 0% 7% 0.00%

ACCOUNTS RECEIVABLE
% of Customers Paying Within Immediately 30 days 60 days 75% 25% 0%

ACCOUNTS PAYABLE
% of Vendors Paid Within Immediately 30 days 60 days 100% 0% 0%

Projection Assumptions Number of days utilized for overnight per month Number of days utilized for day care per month Average Receipt in Gift Shop Capacity Capacity Cats Overnight Capacity

10 20 25 120 20 40

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FETCH101: Business Plan
Pro Forma Profit and Loss
The projected profit and loss statement represents the expected performance of FETCH101 during its first 12 months of operations. Company sales are forecast to increase at a rate similar to proven growth trends observed by other operators in the niche space. Net profit margins also steadily rise as the business matures and the traditional learning curve of the first year is overcome. Some key facts for financial verification to the success of FETCH101: Personnel Plan Doug Voorhees Administration Support Full-Time Care Providers Part-Time Care Providers Marketing Manager Technology Manager Payroll Taxes Salary Increase 1 1 2 3 1 1 12.50% 7.50% 53,760 38,000 46,000 15,000 45,000 40,000

  

In financial projection, FETCH101 reaches 50% occupancy for day care (60 dogs) in month 6. If 90% occupancy for day care is achieved in the same period monthly revenues will double for the revenue stream alone. Contract providers receive a 30% commission as compensation. Startup costs include the purchase, construction, shipping, modification, and equipment for building and land. This scenario also includes 50% contribution from the City of Carson for the public dog park and for infrastructure (water, sewer, electricity). Startup Expenses
Buildings/Real Estate Purchase Shipment Construction PV System Leasehold Improvements Park Development Total Capital Equipment Office Equipment Operational Equipment Total Prepaid Expenses Rent Prepaid Insurance Total $182,000.00 $10,000.00 $192,000.00 $15,000.00 $15,000.00 $30,000.00 Advert Promo Expense Advertising media Total $35,000.00 $35,000.00 $56,432.00 $25,000.00 $70,000.00 $35,000.00 $25,000.00 $75,000.00 $286,432.00 Opening Inventory Finished Goods Animal Supplies Total $15,000.00 $5,000.00 $20,000.00 Admin Expense Legal and accounting fees Permits and Licenses Total $5,000.00 $5,000.00 $10,000.00

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FETCH101: Business Plan

Twelve-month Profit and Loss Projection
REVENUE Day Care Overnight Care Pet Grooming Wash Your Own Pet Pet Energy Work / Reiki Pet Agility Work Gift Shop Pet Portraits Animal Behavior Classes Venue Rent
Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

$21,000 $900 $240 $360 $360 $100 $900 $350 $800 $1,000
($492)

$33,600 $900 $240 $360 $360 $100 $900 $350 $800 $1,000
($730)

$33,600 $900 $240 $360 $360 $100 $900 $350 $800 $1,000
($730)

$33,600 $4,500 $240 $360 $360 $100 $900 $350 $800 $1,000
($798)

$33,600 $4,500 $240 $360 $360 $100 $900 $350 $800 $1,000
($798)

$33,600 $4,500 $360 $360 $540 $150 $900 $350 $800 $1,000
($804)

$33,600 $4,500 $360 $360 $540 $150 $900 $350 $800 $1,000
($804)

$42,000 $4,500 $360 $360 $540 $150 $900 $350 $800 $1,000
($963)

$42,000 $4,500 $360 $360 $540 $150 $900 $350 $800 $1,000
($963)

$42,000 $9,000 $360 $360 $540 $150 $900 $350 $800 $1,000
($1,048)

$46,200 $9,000 $720 $360 $1,080 $300 $900 $350 $800 $1,000
($1,147)

$46,200 $9,000 $720 $360 $1,080 $300 $900 $350 $800 $1,000
($1,147)

Gross Profit
EXPENSES Loan Payment Service Providers Salaries & Wages Benefits Employee Taxes (12.5%) Marketing Expenses (all inclusive) Rent Utilities Animal Supplies Telecommunications Insurance Transportation Website Monthly Costs Facility Maintenance Office Supplies Misc. Overhead Expenses Total Expenses EBIT Taxes (real estate, income) Interest

$25,518
Month 1

$37,880
Month 2

$37,880
Month 3

$41,412
Month 4

$41,412
Month 5

$41,756
Month 6

$41,756
Month 7

$49,997
Month 8

$49,997
Month 9

$54,412
Month 10

$59,563
Month 11

$59,563
Month 12

($15,846) ($341) ($24,867) ($2,708) ($3,108) ($35,000) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($85,350) ($59,832) $0 $0

($15,846) ($341) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,450) ($15,570) $0 $0

($15,846) ($341) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,450) ($15,570) $0 $0

($15,846) ($341) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,450) ($12,038) $0 $0

($15,846) ($341) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,450) ($12,038) $0 $0

($15,846) ($425) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,534) ($11,779) $0 $0

($15,846) ($425) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,534) ($11,779) $0 $0

($15,846) ($425) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,534) ($3,537) $0 $0

($15,846) ($425) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,534) ($3,537) $0 $0

($15,846) ($425) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,534) $878 $0 $0

($15,846) ($849) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,959) $5,604 $0 $0

($15,846) ($849) ($24,867) ($2,708) ($3,108) ($3,100) $0 ($150) ($2,000) ($150) ($50) ($480) ($50) ($250) ($200) ($150) ($53,959) $5,604 $0 $0

NET PROFIT

($59,832)

($15,570)

($15,570)

($12,038)

($12,038)

($11,779)

($11,779)

($3,537)

($3,537)

$878

$5,604

$5,604
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FETCH101: Business Plan
Pro Forma Balance Sheet
The proposed financial plan of FETCH101 provides excellent financial strength and liquidity. Cash reserves for the first 12 months represent a contingency while cash flow becomes positive. Company operations are designed to minimize loss and shrinkage while maximizing existing resources in human and financial capital. The balance sheet in the following table is pre-revenue. The complete table, including monthly estimates for Year One, is included in the appendices.

FETCH101
Assets
Current assets: Cash Investments (Marketing) Inventories Accounts receivable Pre-paid expenses Other Total current assets Fixed assets: Property and equipment Leasehold improvements Equity and other investments Less accumulated depreciation Total fixed assets Other assets: Goodwill Total other assets

Balance Sheet

Liabilities and owner's equity
Current liabilities: Accounts payable 2010 -

2010 226,568.00 35,000.00 20,000.00 192,000.00 473,568.00 2010 316,432.00 10,000.00 326,432.00 2010 -

Accrued wages Accrued compensation Income taxes payable Unearned revenue Other Total current liabilities

Long-term liabilities: Loan Payable Total long-term liabilities

2010 800,000.00 800,000.00

Owner's equity: Investment capital Accumulated retained earnings Total owner's equity

2010 -

Total assets

800,000.00
Confidential

Total liabilities and owner's equity

800,000.00
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