1

Patrick Eghlidi, Jessica Hernandez, Melissa Ward,

Amber Homeres-Brinkley, Matt Lewis, Nathan Emmet
BA101 Johnson 12:00PM
October 1 November 24, 2009

Table of Contents:
Key Strategic Concept

Page 4

Executive Summary

Page 4

Organizational Issues

Pages 5 - 6

Name

Page 5

Organizational Form

Page 5

Our mission

Page 5

General Objectives

Page 5

First Year Objectives

Page 5

Two to Three Year Objectives

Page 6

Four Years and Beyond

Page 6

Business Management Plan

Organizational Structure & Plan

Pages 6 - 7

Corporate Governance Policies & Assurances

Page 8

Key Advisors & Supportive Services

Page 8

Organizational Responsibility

Page 8

Operations

Pages 8 - 9

Market Feasibility & Viability

Pages 6 - 9

Pages 10 - 12

Service Description

Page 10

Current Development

Page 10

Target Market & Segmentation

Page 10

Potential Annual Growth

Pages 10 - 11

Differentiation Strategy

Page 11

Promotion Strategy

Page 11

Distribution

Pages 11 - 12

Purchasing Methods

Page 12

Table of Contents Continued:

Marketing Implementation Plan

Pages 12 - 13

Sales Tactics

Page 12

Service and Warranty Policies

Pages 12 - 13

Ongoing Market Evaluation

Page 13

International Element

Page 14

Financial Plan

Pages 15 - 16

Capital Budgeting

Page 15

Operational Cash Flows

Page 15

Aggregate Funding

Page 15

Contingencies and Cash Flow Sensitivities

Pages 15 - 16

Financial Controls & Management Practices

Page 16

Financing Sources & Form

Page 16

Capital Structure

Page 16

Long Term Financial Strategy

Page 16

Critical Risks, Problems, and Assumptions

Pages 17 - 18

Appendixes
Appendix A: Critical Events & Milestones Graphic

Page 19

Appendix B : Organization Chart

Page 20

Appendix C: Product Differentiation Chart

Page 21

Appendix D : Perceptual Map

Page 22

Appendix E : Capital Budgeting

Page 23

Appendix F : Operational Cash Flows

Page 24

Appendix G :Pricing & Food Cost

Page 25

Appendix H : Potential Market Calculation

Page 26

Appendix I: Employee Amount & Cost

Page 27

Appendix J: Facility Layout

Page 28

References

Pages 29 30

Key Strategic Concept

Choice Dog Care is designed to be the leader and trend setter in its own newly created
market of truly quality based dog day care services. The idea that mans best friend deserves
just as much attention and space as an average child during working hours is an idea that many
people will agree with, offering the same quality care to their dogs that childcare offers to their
children is one of the key focuses of Choice Dog Care. Giving people the choice and opportunity
to provide their dogs with happiness and exercise while they are at work is something that dog
owners and lovers will not deny their pets. This opportunity to truly revolutionize the way dog
day cares are thought of is what Choice Dog Care is all about. Current market trends show that
people are spending too much for too little, the strategy of charging a small amount more for a
days worth of care that far exceeds our competition is the key to success. Small facilities, old
toys and play structures, small staffs, and a lack of food and treat qualities are a few of the many
problems with current dog day cares. We plan on changing this, with a large facility, new and
more interactive toys and structures for the dogs to exercise with and around, a large enough
staff to keep a good eye on all of the dogs as well as high quality foods without fillers and meats
that do not qualify for human consumption, we will be able to offer the best quality care in the
Portland Tri-Met area. Instead of focusing on grooming, retail sales, and training, we will focus
on what our customers want in the first place; a day care for dogs.
Executive Summary
Currently in the Portland Tri-met market for dog daycares there are no high quality
services being offered. This allows Choice Dag Care to establish and develop the ultra high
quality dog daycare service in the Portland Tri-met area with a 100% market share in this quality
based segment while utilizing only 0.09 0.4% of the estimated potential customer base. The six
investors will execute this opportunity with an initial investment of $250,000.00 from personal
savings. We will take a small loan out from a public bank of $114,180.00 so the total of
$364,180.00 will get our business going all the way through the second quarter of the first year.
By the end of the first quarter of the second year we will maintain 0.14% of the possible clientele
in the area, pay back the loan, and all six investors will have earned back their portions of the
initial investment of $250,000.00. We will maintain 100% of the market share at this time as
well which will allow us to continue to be very profitable. Expansion can be reached by the 1st
quarter of the 3rd year allowing for two facilities offering our service to the Portland Tri-Met
area. Through these two facilities we will be able to post annual revenues about $2 million while
only accessing 0.4% of the potential market in the Portland Tri-Met area, with further expansion
beyond the three year estimations there is only more profit to be made and more potential market
to control. The six investors are all qualified and capable of running this business because we all
have retained knowledge from Portland State Universitys School of Business which is an
extremely innovative program. Combined we have over 10 years of experience in business and
individually posses the necessary skills to exceed at our elected positions within the company.
To maintain our market share if new competitors come into our market, we will continue to offer
the highest quality with guaranteed satisfaction and run our monthly promotions to gain an even
larger client base. We will also achieve customer loyalty through our exceptional customer
service by taking great care of their loved ones and keep them coming back to us and referring us
to friends and family. Choice Dog Cares quality level will truly be the reason for its success, so
we will strive to keep an ultra high quality reputation and we will succeed!

Critical Events & Milestones Graphic (See Appendix A)

Organizational Issus
Name: Choice Dog Care is the chosen name for our company and service. It is an ideal
name for the service we are offering because it is a classy and relatively tame name in
comparison to most of our competition. Instead of having a childish or wacky name we are
tailoring our name to our target market based on a segmentation of quality and not price, we are
not focusing on being cute, or appearing to be anything we are not, we are instead conveying our
choice service and maintaining a prestige through our name not only our service. Choice Dog
Care is easy to remember, conveys a mature management mentality and describes our business
at the same time as conveying the prestige of our service and the quality it offers. This name is
known to be an available corporate name based on a search through the Oregon Secretary of
States Corporate Division website and its business name search ("Oregon Secretary of State
Corporation Division").
Organizational Form: Choice Dog Care will be formed as a corporation. This will allow
for a liability protection not offered through any other business form that also allows us easy
expansion out of state. We will maintain the company shares privately and within the initial
investors, to allow for no vote out of the initial investors and maintain a privately run and owned
corporation. Double Taxation is one downside of the corporate business form, to avoid any
double taxation, all initial investors will maintain positions in the company at a corporate
level and be paid a salary that is market competitive; based on responsibilities and skills.
Bonuses will be awarded annually based on only, improved revenue and growth. Any remaining
profits will spent in expansion of the company to new locations, improved services, etc. By
reinvesting any remaining profits we will be able to avoid any double taxation by maintaining
expenses at an equal level as revenue. There will be no lost profits through corporate and
personal taxations on the same profits.
Our mission: Serve our community by offering the most exceptional care of their dogs,
through a high level of quality in every aspect of our day care services and stand out as an
industry leader and trend setter for all dog day cares.
General Objectives: Because of the tough economic time people are being careful on
what and how to spend their money. Our company will make them feel like they are not only
safe leaving their dog in our care, but that they are spending their money wisely by doing so. We
will do this by offering quality and environmentally friendly resources to their dogs, we will
offer things that our competitors are not currently offering such as organic treats and foods made
with no wheat, corn, or other grain fillers. The little things we do like this will set us apart from
the competitors and our friendly staff will also help gain customer loyalty.
First Year Objectives: Within one year of gaining financial support for Choice Dog Care
we would like to spend no more than three months renovating a location, marketing the grand
opening, and hiring any necessary employees. Within nine months of acquiring financial support
we would like to have started building a customer base and see at least a 100% increase in
customers since the opening day. By the end of the first year of business we would like to have
paid all and any debts acquired through financial needs.

Two to Three Year Objectives: Throughout the second and third year we would like to
continuing building our customer base while continuing to earn enough revenue to expand to a
second location. This location will need to be similar in size and should take no longer than three
months to prepare after acquiring the necessary funding through sales at our first and original
location. We would like to use this time to continue with market research and discover any needs
not being addressed by ourselves and our competitors. By the time our second location opens we
would like to improve any areas of weakness in our services and stay the industry leader in both
locations.
Four Years and Beyond: After opening and maintaining our second location for at least a
period of twelve months, we would like to continue with expanding our services to new areas
and markets that may not be tapped by any competitors. This will mean opening third and fourth
locations, these locations will need to be in the Pacific Northwest, they are not limited to Oregon,
and will preferably be out of state and allow us to start becoming a regional company. When we
have established a successful regional presence in the Pacific Northwest we would like to
advance across the west coast of the United States, and eventually precede throughout the midwest regions as well as the east coast regions of the United States becoming a nationally
recognized brand and quality service provider.
Business Management Plan
Organizational Structure & Plan: Choice Dog Care consists of six key positions to run an
effective business. Each position will focus on certain aspects to help keep our business as
productive as possible.
1. Chief Executive Officer (CEO): The CEO of Choice Dog Care will be in charge of

making sure this business is being operated properly as well as legally. The CEO will
need to host routine checkups on all of the employees within the company to not only
offer them guidance if needed but to make sure they are doing their jobs correctly.
Maintaining legally and ethically sound operations will also fall under the scope of
responsibility of the CEO, setting standards and precedence for all other employees.
The CEO will report to the board of directors at any time necessary. Choice Dog
Cares CEO will be investor Patrick Eghlidi, compensation will begin at an annual
Salary of $36,000 and will increase based on quarterly profits.
2. Chief Marketing Officer (CMO): The CMO will be responsible for informing
customers of Choice Dog Care. Responsibilities will include creating a high level of
prestige in all marketing aspects of the corporation. The main priority of the CMO is
to get customers and maintain a majority market share in high quality dog care
services. The CMO will also be in charge of creating any and all marketing materials
and medias including but not limited to paper, print, video, and radio advertisements.
This includes promotional idea's and services packages, as well as maintaining a
continuing market research program to stay ahead of competitors and address any
needs from customers. The CMO will report to the CEO for all major decisions as
well as consult with the CFO on budgeting and cost based needs for programs and
marketing campaigns. Choice Dog Cares CMO is investor Melissa Ward,
compensation will begin at an annual Salary of $36,000 and will increase based on
quarterly profits.

3. Chief Financial Officer (CFO): The CFO will be in charge of payroll and

bookkeeping. Because this position is not constantly needed, the responsibilities of

the CFO will also be to continue looking for new locations, work to acquire any
necessary funding for expansion, promotion, and capital. For this position the
qualifications are as follows; four plus years of college or work experience in finance
and accounting. The CFO will have an organized system in which all funds coming in
and out of the company will be accounted for in case of an audit. The CEO and CMO
will also rely on The CFO as a consultant in any major decisions made, and their
capital needs. The CFO will also maintain a bi-weekly report of profits and cash
flows to be presented to the CEO and CMO for strategic and tactical based decision
making. Choice Dog Care CFO is investor Jessica Hernandez, compensation will
begin at an annual Salary of $36,000 and will increase based on quarterly profits.
4. Daycare Manager: The daycare manager will be in charge of the other employees as
well as scheduling. We will supply them with 6 weeks of dog training course that
they must attend. They must be friendly and good with both people and dogs. The
manager will hold a key to the daycare, and will be in charge of ordering supplies
when they are low, help out with all of the customers dogs needs, as well as oversee
all other employees. Choice Dog Cares Daycare Manager is investor Amber
Homeres-Brinkley, compensation will begin at an annual Salary of $36,000 and will
increase based on quarterly profits. Once a second location is open this position will
be filled at original location by Amber Homeres-Brinkley, and at the second location
by Matt Lewis.
5. Assistant Daycare Manager: This position will consist of taking on mangers
responsibilities on managers days off. The assistant manager will also hold a key and
will need to work open to close shifts on managers days off. The assistant manager
must also help supervise and educate employees about dogs. Qualifications for this
position are as follows; no college education required, but must have graduated high
school, must have at least 2 years of managerial experience, and also attend 6 weeks
of dog training courses. Must be friendly and outgoing, and will be primary
management position spending time with other employees and all pets in daycare
each worked day. Choice Dog Cares Assistant Manager will be investor Matt Lewis,
compensation will begin at an annual Salary of $36,000 and will increase based on
quarterly profits. Once second location is opened this position will be terminated
replaced by a standard daycare floor employee.
6. Daycare Floor Employee's: Floor employees will be in charge of ensuring each and
every customers dog is happy. They must play with the dogs, feed the dogs and
make sure the dogs are really getting their moneys worth. They will also be in charge
of cleaning up after the dogs and maintaining the quality environment and atmosphere
of Choice Dog Care. At start up this position will be covered part time by all
investors and full time by investor Nathan Emmet, compensation will begin at an
annual Salary of $36,000 and will increase based on quarterly profits. Once the
amount of dogs exceeds 60 per day an additional floor employee will be hired for
every 20 additional dogs that attended day care. These employees will be
compensated at a rate of $9.00 an hour for their services with no benefits.
Organization Chart (See Appendix B)

Corporate Governance Policies & Assurances: Choice Dog Care will be best run in the
form of a corporation, with six initial investors making up the board of directors as well as the
management team of the business. Investors will take on management positions based on skills
and knowledge of positions. There will be a CEO who will have final say in operations and will
be selected by a majority vote from the initial investors. The CEO will not have full power and
final say in all aspects of the company however and at any time can be replaced by a majority
vote from the initial six investors. This will maintain peace between investors and provide each
investor with a since of security knowing that they are not handing over their authority to one
individual. There will be six members on the board and they will fill six main positions in the
company including CEO, CMO, CFO, floor manager, assistant floor manager, and floor
employee.
Key Advisors & Supportive Services: Choice Dog Care will prepare and submit all forms
and legal documents internally. However on an annual schedule an auditing service will be hired
to look through and report on statements of cash flows, revenues, income, and tax returns. We
will also utilize dog trainers throughout the Tri-Met area to teach all floor employees through
standard dog training courses how to interact correctly with dogs of all sizes and breeds. We will
also rely on veterinary hospitals in the event of injury to any dogs in our care. For strategic
advice we will rely on teamwork and ideas generated therein from the initial six investors that
make up the board of directors as well as the management team.
Organizational Responsibility: Choice Dog Care will choose to take part in sponsoring
bi-weekly dog adoption events. Every other Sunday from 6:00AM to 6:00PM which is our
projected least busy day, we will offer a portion of our facility to be used by volunteers and
activists throughout the community to bring dogs from local shelters and foster care and be
paired with a new owner and home. We will provide food, water, and shelter for these dogs and
an environment where more people are likely to come, where they can run outside with a hopeful
companion or just play fetch inside our play room. Some studies have suggested that more
people are deciding not to adopt because they do not want to be in the depressing environment
of an animal shelter. By bringing these dogs to the adoptees and offering this experience in a
bright happy place we hope to increase the adoption rate of dogs in the Tri-Met area. The cost
will be minimal, no more than a few pounds of food and water, but the results will be something
that the community can be proud of and appreciate. This is our responsibility to the community
because our community is dogs, and without them we would have no business. So by giving
back to the dogs and helping them we are providing for the base of our success.
Operations: There will be one main facility used by Choice Dog Care to house both the
day care as well as our corporate offices. The facility will have three indoor areas, a main
lobby and entrance that are adjoined to the managerial offices and meeting spaces as well as
employee break and bathrooms. The rest of the facility will be split up one third for all small
dogs, and two thirds for all large dogs. Outside will be a fenced off yard with both cement and
grass play areas with covered and uncovered sections to accommodate the ever changing weather
in Oregon. This area will also be split one third, two thirds for small and large dogs. The fences
will be uniformly ten feet tall so that even the craftiest dogs would have a hard time escaping.
That would be the primary layout of the initial day care facility. All management positions would
conduct the necessary work in the allotted office space. The facility will most likely be a rented
space to keep initial cost down as well as the limited availability to purchase sufficient space in

the tri-met area. Cost of development would range between $75,000 and $100,000 depending on
available facilities. Most of the cost would be based on installing interior walls to split up offices,
as well as the general day care space for dogs, the second most costly would be in fencing, to
maintain a relatively low cost we will use a metal fence that is secure and still inexpensive. The
cost of development will also include the cost of cameras and installation so that at any time our
customers can log on to our website and see what their dog is doing. It will also include the cost
of play structures and interactive play areas. We will also be providing food, treats, and toys for
all the dogs and an estimated $25,000 initial investment in toys, treats, and food. These will all
be stored in the bad dog kennel spaces where we will be able to house up to ten dogs in
individual kennels until their owners come to get them. Upon arrival, clients are greeted and if it
is a return client, the dog is taken to their own kennel to get adjusted. Once dog is comfortable,
they are taken to their play area. If they are a large breed they are put in with the large dogs, if a
smaller breed then put in with the smaller dogs. This segregation helps keep possible injuries to a
minimum and allows the dogs to feel comfortable while they stay with Choice Dog Care. During
their stay they will receive repeated outdoor play time to increase their daily exercise as weather
permits it. They are provided with high quality dog food for up to two meals while they are with
us. If they have special needs, the owner has the option to leave any special dietary supplements
or special dog food with us to implement for their own individual dogs needs We also have an
outside play area for nicer weather so the dogs can feel like they are in their own backyards. All
play areas are constantly monitored by staff to ensure the safety of the animals. All customers
will have an ongoing file in our computer database for their dog on any special needs,
personality traits, or notes that our staff feels are important to provide the best care of each
individual animal. Upon arrival, our staff will make sure this file is up to date by asking each
client if there is anything new that we should be aware of with their pet. This information will be
made available for our staff as a point of reference to provide the best care possible for the
clients pet. All dogs must have current vaccinations with proof from a veterinarian, go through
an intake evaluation by a staff member and pass a temperament assessment before attending
daycare. Also all dogs must be spayed or neutered by 6 months of age.
See Appendix G for pricing and cost analysis.
See Appendix I for employee amount and cost analysis.
See Appendix J for facility layout map.

Market Feasibility & Viability

Service Description: Choice Dog Care provides a beautiful and welcoming, spacious
environment so you can have peace of mind about mans best friend. We specialize in care for
your dog and your busy lifestyle. We provide the best possible care for your dog when you dont
have time and are on the go. We provide a wide array of services. Including, but not limited to:
all day daycare, outside exercise for your pet, indoor areas for play and exercise, nutritious filler
free foods and treats, and training reinforcement.
Current Development: We are in the process of securing a location for the business, a
large space with a convenient location on the west side. Just outside of Portland to make it
available to a wide array of people and lifestyles. Projected capital would be about $300,000.00
to start with each business associate putting in equal amounts to get the business up and running.
We would be looking at three months start with losses as we get known in the area, after that we
would enter a period of six months to earn back initial investments. Beyond six months we
would see profits that allow for expansion and raises in wages and salaries for employees.
Target Market & Segmentation: The most important aspect of Choice Dog Care is the
target market and demographic that we are tailoring our business to; working class, excess
income earning, young and middle aged couples and families. This is a broad market that will
always be growing and expanding throughout the state and country. The age group of 25 64
years old is the most inclusive demographic that will need our service, this is the age range based
on the average age of a college student (under 25) and the traditional age of a retiree. These are
our target customers for three reasons; first they generally have a disposable income that can
afford the services we offer. Second they are busy working longer than just the old nine to five
job, which means they are gone more and not able to give as much attention to their dogs.
Thirdly they are value based, they do not want to waste their money on cheap services that are
not up to their standards, and they do not mind paying an extra four to ten dollars on a day of dog
care if it has the value and quality we are offering. We would hope to differentiate ourselves
from our competition enough that we can create our own brand new market and have a one
hundred percent market share to start out, we believe that we can offer that new market by
playing off of the weaknesses and strengths of our competitors. We have looked at what is
offered traditionally by our competitors and what services are new and strongly supported by
customers. By taking the best services, and the turning the worst into great services too we hope
to develop a market that has yet to be explored by any competitors we would face in a fight over
current market share (See Appendix C & H for market analysis chart & potential market
calculations).
Potential Annual Growth: Trends in the pet industry show that people are spending
money on their pets, last year $41.2 billion in revenues were pulled in across the country in pet
related products and services (Nichole). Although the recession hit America, pet owners seem to
not be affected. They are still going to spend high amounts of income on their pets. Although
they may not spend as much on unnecessary luxury items for their pets, the services offered
through Choice Dog Care are services that they will not be able to justify denying their dogs.
The large amount of money that is being spent, and the fact that we are offering a service that is
for the health and benefit of the customers dog will mean that we can acquire and maintain a
percentage of the population as loyal customers. According to the United States Census Bureau
there has been a 13.2% population increase in the Portland Tri-Met area (Clackamas,

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Multnomah, Washington Counties) over the past 8 years. This shows that there has been a
consistent increase in population and that means a consistent growth of customer base for our
business. Bases on the information gathered there was an average of over 22,000 new residents
in the tri-met area each year ("U.S. Census Bureau"). These new residents along with current
residents will mean that we will always have a growing market to offer our services to.
Differentiation Strategy: Our competitive edge is that there are very few quality based
dog daycare businesses on the west side (See Appendix D for Perceptual Map), and we would
market our business to middle/upper working class clientele. The differences between our
daycare and the daycare of our competitors will be based on quality. This would include but not
be limited to larger daycare facility, indoor and outdoor play areas, interactive and engaging toys
and structures, filler free quality foods and treats. We will not offer extra services such as
grooming and retail sales, instead we will focus on spending time with the dogs while under our
supervision. We will differ from our competitors by taking a new and innovative stance on what
dog day care should be it is not just a place to take a dog so that they are not alone in a house or
apartment all day. A dog day care in our view is a place for a dog to socialize with other dogs,
exercise and play with other dogs, and a place to continue with training through reinforcement of
tricks for treats, and status in the world of humans. These are all services that are offered here
and there from various competitors, but not with the viewpoint that we take, and not in an all
inclusive setting. This is what we believe our customers will want, a day care tailored to the dogs
with price as the last restriction on what is offered. Advertising as the up-scale and prestigious
daycare center that Choice Dog Care is will help let customers know that their dogs will receive
the utmost care and treatment which is not only key to the health of the dog, but the health of the
owner and our company. Focusing on clientele relationships and building friendships with our
customers will allow us to take full advantage of the best marketing strategy known, word of
mouth. This will be our cheapest and most effective form of marketing, and it will be through
our differentiation that we will gain so much talk throughout the community.
Promotion Strategy: Choice Dog Care will use various methods to promote and market
itself to customers and the community. We will begin with marketing through newspapers and
magazines, such as the Oregonian, the Clipper, and the Red Plum. These are widely distributed
medias, the Oregonian is distributed throughout the Tri-Met area and will allow a wide number
of people to be exposed to our quality service. The Clipper and Red Plum magazines are
distributed to specific markets and vary based on location and relevance of businesses and
residence throughout the Washington county area. We will also use flyers handed out at local pet
supply stores and posted throughout the area for people to see. We will work with local business
firms, veterinary clinics, pet supply stores, and animal parks to allow us to market in and around
their properties. We will offer coupons around the time of opening to allow the community to try
our services and benefit from them at a lower than usual price, giving us a larger customer base
to start and allow word of mouth to start throughout the community. We will also offer a
website that will allow customers to learn about our company, mission, and objective in running
our business.
Distribution: We will maintain a direct distribution channel with our customers. Being a
service provider we will deal with customers on a face to face basis the majority of the time. This
will allow us to have a relationship with our customers that we would not have any other way. A
key focus around this distribution method will be building and maintaining a personal

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relationship, we will take all forms of criticism constructively and immediately to allow for
immediate correction and improvement.
Purchasing Methods: We will have initial purchases that will be based through retailers in
the community, after the initial purchasing we will have very little fixed cost and purchasing.
The main purchasing we will do is on bulk amounts of dog food and treats; we would prefer to
do this with Castor & Pollux Pet Works, a local company based in Clackamas Oregon who
produces food, treats, toys, accessories and cleaners. We would prefer to do most of our
purchasing through Castor & Pollux to help support our local community and potentially build a
relationship that would offer us an extra marketing method through a partnership with Castor &
Pollux. All necessary fixed costs related to purchasing of supplies could be done with this one
partnership allowing for a greater discount on food, toys, treats, cleaners etc. ("Castor & Pollux
Pet Works").
Marketing Implementation Plan
Sales Tactics: Choice Dog Care will offer one service, and only one service; dog daycare. We
will offer this for $35.00 per day for up to 12 hours of dog daycare. We will offer $20.00 half
day daycare pricing (up to 6 hours of daycare), and we will offer promotional packages that
include an extended amount of daycare days for a slightly discounted price. Choice Dog Care
services will implement promotional offers for customers to ensure exceptional service in the
following way(s). First time customers will receive 20% off coupons for their next full day of
day care, along with a promotional 10% discount offer when customers purchase a package
amount of days at one time. Staff members will put up flyers in local pet shops, groomers, and
pet supply stores to reach a broader market. An ad campaign will be established where we will
put a coupon with an advertisement for Choice Dog Cares grand opening in the Willamette
week newspaper and when brought in they will receive 15% off a dog daycare package or $5.00
off their visit on one full day of daycare. Good for first time customers, after the promotional
purchase, day care goes back to regular price. Monthly specials will be available; will change
depending on what owners decide for that month. If customers prefer a friend and the new client
purchases a package of day care, the customer who referred the new client receives one day free
of dog day care. We will offer day care packages to be bought online from our web site as well
as in the day care center. All sales will be handled inside the day care at the check in counter
where all floor employees will be trained in selling packages vs. day by day prices. By doing this
we will increase the number of guaranteed days a customer will utilize our service and increase
our revenues by a percentage higher than the discount associated with each package.
Services and Warranty Policies: Packages bought have no expiration and may be used for any
dog in the clients household for day care. If our customers find that we have not provided
optional care for their pet we have a full refund satisfaction guarantee. The intake evaluation for
each dog is a form with a list of questions about the dog, containing but not limited to: has the
dog ever attacked or bitten anyone, past aggression problems with men or women, any traits or
conditions we should be aware of, past medical history, special needs, contact information of the
owner and an alternative phone contact in case of an emergency and we are unable to reach the
owner. This must signed by the staff member and owner of the dog after (s)he has passed a
positive intake evaluation to assure the safety and well being for staff, owner and other dogs at
the facility. The importance of continual service excellence is very important to Choice Dog
Care, so we implement follow up calls to clients to ensure their experience with us was a

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positive one and sending promotional flyers and discount coupons via email or via regular mail if
they do not have an email account. This ensures that the customer knows we care about them,
want to continue their day care with us and that theyre business is important to us. Warranties
such as the no expiration policy, dog intake evaluation form and a money back guarantee helps
keep damages and losses to a minimum and cut down on liability issues. In order to guarantee
the necessary funds are available for any refund to an unsatisfied customer there is a $50,000
contingency budgeted for each facility that will cover any cost of refund to a customer or
incident that may take place. This contingency will remain available and be replenished up to the
original amount from revenues each time it is accessed.
Ongoing Market Evaluation: We will have comment cards by the check out area so customers
can write down any thoughts, experiences or ideas they have about the day care. This is an
important way to find out how we can better serve our customers and be better able to provide
for their wants and needs. If we have not had a client bring their pet in for over a month we will
send them an email or regular mail with promotional coupons and offers to give them incentive
to use our services again. When a first time client signs up with us, we ask for their email. We
will send online surveys out to all clients e-mails in our data base as a way to see how we can
improve our business. This will also keep us up to date on how many clients we have and the
demographic of who our clientele are. We will do continuing research on new pet based
businesses within a 5 mile radius to see and compare ourselves to our competitors. We will
evaluate their services, prices, promotions and see how we can continually improve our own. On
the first Monday of every month there will be a staff meeting. Bi-weekly at the managerial staff
meeting, the managers will go over accounts, finances, scheduling and all upper management
issues that need to be addresses. These meetings will also go over any promotional specials that
will be happening that month and to keep staff up to date on any new information we need them
to know. All information from surveys, comment cards, and market research will be discussed
and evaluated at these meetings to determine any new directions that may need to be taken in
strategy or tactics of the business.

13

International Element
Being dog day care center based in the United States our primary language will be
English. Because we are a day care company that is based inside the United States we do not
have much of an international element, we are not going to be distributing or shipping products
from our business to international locations. Our service will directly benefit all residential and
local citizens. The most complex our international affairs will be when a non-English speaking
customer brings their dog in, for instance a Spanish speaking American citizen may be unable to
communicate with our employees. This would be negative and in fact lose a customer base that
may otherwise be untapped by local competition. So what we as a business can do to help cross
the language barrier is set up a method in which we can understand non English speaking
customers. We will make sure that we have a Spanish dictionary on site because the largest
minority population in the Tri-Met area is of Spanish speaking descent. This dictionary can help
whoever is on site or watching the dogs at this time to interpret and understand what the
employee is being asked. Our main goal is to have all of our staff members have a general
understanding of the Spanish language. The next thing that we will have is important because
there are more than just Spanish speaking citizens. We plan to have a translation device or
program available to all employees based at a check in counter. So if someone who speaks any
language other than English comes in we can have them enter what they are trying to say on the
computer and the computer can translate it to English and vice-versa. This will allow us to be
available to any customer who was interested in utilizing our service no matter what culture or
nationality they come from or the primary language they speak, giving us yet another edge over
our competition setting us apart and allowing us to truly be a better choice in dog day care
service.

14

Financial Plan
Capital Budgeting (See Appendix E): Choice Dog Care will have an initial investment
of $250,000 from its six investors, this along with a $114,180 loan from a public bank will
finance all necessary cost to start the business through the 2nd quarter of the first year. Preopening costs during the 1st quarter will total $314,180 to pay for marketing, facility
development, operating supplies and all other costs. We will maintain a contingency of $50,000
for any unseen and uninsured events that occur. This will also cover the cost of an annual salary
totaling $36,000 a year for each of the six initial investors.
Operational Cash Flows (See Appendix F): Entering the 2nd quarter of the 1st year of
operations Choice Dog Care assumes it will maintain a 100% market share in the ultra high
quality dog daycare business and a 0.09% of the total potential customer base in the area (See
Appendix H). By maintaining 55 dogs per day at an average price of $30.00 per day the total
revenues earned during this period will total $148,500.00 and will cover operating expenses of
$136,400.00 leaving a profit of $12,100.00 to be used in payment of the initial loan used to
finance start up. Revenues are based on the assumption that there will be an increase of 10 - 15
dogs per day per quarter until reaching the maximum capacity of 120 dogs. Beginning the 2nd
quarter of the 1st year we will hire our first 2 employees at $9.00 an hour based on a 1:15
employee to dog ratio. By the end of the 1st quarter of the 2nd year Choice Dog Care will have
paid the entire balance owed on the original bank financing. Allowing for a $5,300.00 increase in
investor salaries per investor and reaching the break-even point for all six investors, each
following quarter all profits will be paid out evenly to each of the six investors through salaries
to avoid any double taxation. During the 4th quarter of the 2nd year we will finance an additional
$190,000.00 through a public bank, $140,000.00 for development of a second location during the
4th quarter and $50,000.00 as contingency for the second location. We will open the second
location during the 1st quarter of the 3rd year and use the same pricing but we will assume an
increase of 20 - 25 dogs per quarter until reaching full capacity at the second location of 120
dogs. At the point of financing the second location we will determine salaries based on total
revenues minus expenses, minus one third of our outstanding bank debt and maintain salaries at
this level until the $190,000.00 finance is paid in full through profits from the second location
during the 3rd quarter of the 3rd year of operation. By the 4th quarter of the 3rd year we will see
maximum capacity met at both the 1st and 2nd locations and a steady revenue totaling $648,000
per quarter and salaries for the initial six investors at $237,000.00 per year.
Aggregate Funding: Choice Dog Care will reach financial stability when it has paid all
financial loans and investors have earned back their initial investment of $250,000.00. This will
be met by the end of the 1st quarter of the 2nd year, when revenues are maintained above
$200,000.00 per quarter. This will require an aggregate spending of over $750,000.00 during a
time frame of 1 year, when this has occurred enough funding has been provided to pay back all
loans and again return through salaries the investors initial investments.
Contingencies and Cash Flow Sensitivities: Some possible changes in our critical
assumptions might be the number of our potential customers. After doing some research and
calculating our potential market, it was a fairly high number. During these economic times, we
might see a slightly lower number than anticipated, causing us to have lower sales. Budgeting,

15

cash flows and aggregate funding are all based on a simple calculation of the potentially perfect
market consisting of 832 potential dogs to utilize our day care services (See Appendix H). This
means that our projections rely on possessing between 0.09% and 0.4% of this market, leaving a
very low potential of not meeting our projections. However there is always a possibility of
something happening whether it is vandalism on our equipment, or a dissatisfied customer who
needs a refund, so we will maintain a $50,000.00 contingency fund balance for each facility that
is open and will replenish it with revenues each time it is accessed for something. This should
cover any problems that arise and are not covered by our insurance, primarily in the event that
we need to hold a large marketing campaign to gain a large customer base.
Financial Controls & Management Practices: To insure proper financial reporting and
management practices there will be a bi-weekly meeting held with the original six investors and
any additional managers from other facilities (beyond second year). These meetings will insure
that all responsibilities have been met and appropriately handled throughout the previous 14 day
period. This will be in addition to the routine checkups held by the CEO. To further insure
proper financial practices in the 4th quarter of each year an outside auditing service will be hired
to review all financial statements and budgeting as well as tax returns to insure proper steps and
actions have been taken and nothing has been missed accidently or intentionally. All managers
will report any necessary information at the bi-weekly meetings including the CEO, CFO, CMO,
and store manager, this information will be discussed and any decisions pertaining will be made
by the original six investors.
Financing Sources & Form
Capital Structure: Choice Dog Care will utilize financing from public banks when
financing is needed to fund the opening of a new location. Staying with a public bank we will not
lose any control of our corporation to terms or conditions set by a venture capitalist or private
bank. The higher interest rates offered through public banks will not be a huge problem based on
the high revenues we will earn any loans taken will be for short periods of time totaling no
longer than 18 months. We will initially invest a total of $250,000 of our own money along with
a bank loan of under $120,000 and will pay this loan back within 18 months. We will maintain a
private company and not offer any preferred or common stock, all ownership will be split evenly
amount the initial 6 investors. Investors will be paid through salary for positions worked. Salary
will be determined by splitting evenly any profits that remain at the end of the quarter, however
if there is any outstanding debt to a public bank it will take priority and salaries will be frozen at
the previous quarters rate until said loan is paid in full.
Long Term Financial Strategy: The long term financial strategy of Choice Dog Care will
be a fairly simple pattern of developing a facility to reach its maximum capacity of customers,
borrow the assumed appropriate amount from a public bank and develop another facility until it
reaches maximum capacity and repeat leading to higher and higher profits as more and more
markets are accessed. Investors will continue to see a return based on quarterly profits and once a
point is reached where profits are equal to the total investment cost to develop a new location we
will by-pass public bank loans altogether are finance internally any development thereafter. By
financing in this way there are very few variables that would prevent us from expanding and we
can maintain the highest possible investor returns to our company owners.

16

17

Critical Risks, Problems, and Assumptions

The most common risks and problems that can be run into for a business fall under the
following categories listed.
1. Human errors
2. Equipment failures
3. Third-party failures
4. Environmental hazards
5. Fires and other disasters
6. Terrorism and sabotage
Some risks involved are possible scenarios where a dog could attack another dog even
after temperament intake evaluation. This falls under human error, nothing was intentional and
usually these are unforeseeable issues that happen. If the staff didnt notice an aggression
towards another dog or person and something upset the animal or it was an instance where the
animal was aggravated before it came into the facility there is nothing to do but handle the
situation as it occurs. Having the client sign the intake evaluation form helps for legal reasons,
but if not handled properly with some sort of compensation to the client it could be harmful to
the business just by word of mouth that we handled the situation poorly and their dog was
injured, a staff member was injured or whatever the case may be.
Since our daycare is based on a lot of information that is stored on our computer systems,
a computer crash would be detrimental to our business. This would fall under equipment failure.
A computer crash or having our systems database erased would negatively impact our business
due to it being the main way we keep records of clients and dog information. We would need a
backup of all our information and make sure we have an associate that was knowledgeable in
computer technology to establish a system to keep everything in working order. We would need
to have a contingency plan, such as a backup computer and hard drive that was updated regularly
without information for if something like a hard drive gets wiped out or our computer system
crashes.
Third party failures would be less of an issue at this point in our business; if we had a
shipping issue with delivery of our dog food we could find a local substitute. Along with most of
our products we would need to keep the business running, most everything we need could be
purchased from local distributors with very low probability of this being a problem.
If something were to happen to make the work place a hazardous environment, we would
not be able to have animals in the facility until the issues was cleared up. There is too much
liability to have the business open in this kind of instance. If something like a water pipe burst
and flooded the work space and then improper cleaning of the original damage resulted in mold
spores in the building, this would extend the period of displacement from the building. This kind
of damage would result in a loss of revenue due to the fact that we would have to remain closed
and no dogs could be in daycare until everything was clean and in proper working order again.

Making sure we have proper insurance for these kinds of problems would be very important.
Likewise, with fire, flooding, earthquake and other such unforeseeable disasters having full
coverage insurance would be very beneficial in case something like that happened. Having
business interruption insurance to replace revenues lost when the business cannot open for
customers would be good add on to our general insurance.
Terrorism and sabotage would be highly unlikely, although not impossible. If a
competitor or angry customer wanted to they may try and cause harm to staff or the business.
This would lead to contacting law enforcement to try and rectify the situation.

18

19

Appendix A: Critical Events & Milestones Graphic

Yr. 1 Q1

Yr. 1 Q2

Establish and incorporate Choice Dog Care.

Find location for first daycare center, have
website up and running. Begin renovation
of center and purchasing of necessary
supplies. Begin marketing in local papers
and magazines and face to face flyer
handouts
Hold Grand Opening Event.

Yr. 1 Q3

Yr. 1 Q4

Market positions for hire in local paper and

job websites.

Yr. 2 Q1

Yr. 2 Q2

Market positions for hire in local paper and

job websites.

Yr. 2 Q3

Yr. 2 Q4

Yr. 3 Q1

Find location for Second daycare center.

Market positions for hire in local paper and
job websites. Begin renovation of center
and purchasing of necessary supplies
Hold Grand Opening Event for second
location and market positions for hire in
local paper and job websites.

Borrow $114,180 from

bank, invest $250k.
Total $364,180 start up
financing.

Average 55 dogs a
day. Employ 2 noninvestor employees.
Average 65 dogs a
day. Employ 4 noninvestor employees.
Average 75 dogs a
day.

Post revenues over

$100k.

Average 85 dogs a
day. Employ 6 noninvestor employees.

Pay off bank loan &

increase investor
salaries. Break even on
original investment.
Increase investor
salaries. Post revenues
over $250k.

Average 100 dogs a

day. Employ 8 noninvestor employees.

Post revenues over

$150k.
Post revenues over
$200k.

Average 110 dogs a

day. Employ 10 noninvestor employees.
Average 120 dogs a
day.

Increase investor
salaries.

Average 175 dogs a

day. Employ 16 noninvestor employees.

Post revenues over

$400k.

Borrow $190k from

bank to finance
second location.

Yr. 3 Q2

Market positions for hire in local paper and

job websites.

Average 200 dogs a

day. Employ 20 noninvestor employees.

Post revenues over

$500k.

Yr. 3 Q3

Market positions for hire in local paper and

job websites.

Average 220 dogs a

day. Employ 24 noninvestor employees.

Pay off bank loan &

increase investor
salaries. Post revenues
over $550k
Increase investor
salaries. Post revenues
over $600k

Yr. 4 Q4

Average 240 dogs a

day. Employ 26 noninvestor employees.

20

Appendix B: Organization Chart

Year 1 Quarter 1 Year 2 Quarter 4
Organization Chart

PatrickEghlidi,JessicaHernandez,
AmberHomeresBrinkley,Matt
Lewis,MelissaWard,NathanEmmet

BoardofDirectors(Original
Investors)

ElectedfromOriginalInvestors

CEO:PatrickEghlidi

ElectedfromOriginalInvestors

CFO:Jessica
Hernandez

DayCare
Manager:Amber
HomeresBrinkley

CMO:Melissa
Ward

FloorEmployee:
NathanEmmet

AssistantDayCare
Manager:Matt
Lewis

FloorEmployees
Uoto5

Year 3 Quarter 1 and Beyond

Organization Chart

PatrickEghlidi,JessicaHernandez,
AmberHomeresBrinkley,Matt
Lewis,MelissaWard,NathanEmmet

BoardofDirectors(Original
Investors)

ElectedfromOriginalInvestors

CEO:PatrickEghlidi

ElectedfromOriginalInvestors

CFO:Jessica
Hernandez

CMO:Melissa
Ward

DayCareManager
Location1:Amber
HomeresBrinkley

FloorEmployee:
NathanEmmet

FloorEmployees:
Upto6

DayCareManager
Location2:Matt
Lewis

FloorEmployees:
Upto7

21

Appendix C: Product Differentiation Chart

Competitors
Small Facility
Indoor or Outdoor
No Seperation of Dogs
Varying Services
Retail Sales
Grooming
May Provide Walks
May Provide Training
May Provide Food
May Provide Treats
No Quality Guarantee

New
Large Facility
Indoor & Outdoor
Dogs Will Be Separated based on size
Day Care is only service offered
No Retail Sales
No Grooming
Guaranteed Outdoor Exercise
Guaranteed Training Reinforcement
Guaranteed 1 Meal a Day
Guaranteed Treats
Guaranteed Health Locally Produced Filler Free Foods

Services offered by competitors based on information gathered from phone communication and
websites, all websites have been listed in works cited section.

22

Appendix D: Perceptual Map

Here is a perceptual map showing the price versus quality and where each of our competitors
falls assuming the price begins at $20.00 a day and ends at a high of $30.00.
1. Choice Dog Care ($30.00 5)

12. Alpha Dog ($22.00)

2. The Dog House ($26.00)

13. Pet Smart ($22.00)

3. Hug-A-Bubbas ($26.00)

14. Dogs Dig It ($21.00)

4. Central Bark ($26.00)

15. Town & Country ($20.00)

5. Fetch ($25.00)

16. 4 Paws ($20.00)

6. Play and Chase ($24.00)

17. The Bark Park ($20.00)

7. Camp Doggie Tails ($24.00)

8. Arf & Bark ($24.00)
9. Virginia Woof ($24.00)
10. Wag the Dog ($23.00)
11. Its a Dogs Life ($22.00)

23

Appendix E: Capital Budgeting

CAPITAL BUDGET: SOURCES AND USES OF FUNDING

Sources of Funds
Cash Balance at Beginning of Period
Cash Flows from Operations
Owner Investment
Bank Debt
Other Debt
Equity Financing
T t l Sources
Total
S
off F
Funds
d
Uses of Funds
Building/Real Estate
Capital Equipment
Administrative Costs
Opening Inventory
Pre-opening Expenses
Owner Distributions
Working Capital Requirement (from Operating Cash
Flow Analysis

Contingency (State Assumptions and Explanation)

Total Uses of Funds for Capital Expenditures
Investments for Operating Activities
Cash at End of Period
Total Uses of Funds for All Purposes

First Year
Second Year
Q2
Q3
Q4
Q1
Q2
Q3
- $ 50,000 $ 50,000 $ 50,000 $
50,000 $ 50,000 $ 50,000 $
12,100
25,780
44,180
32,120
250,000
(12,100)
(25,780)
(44,180)
(32,120)
114,180
364
364,180
180 $ 50
50,000
000 $ 50
50,000
000 $ 50
50,000
000 $
50
50,000
000 $ 50
50,000
000 $ 50
50,000
000 $
Q1

50,000
25,000
15,000
25,000
25,000
-

$0
-

$0
-

$0
-

124,180

50,000
314,180 $
50,000
364,180 $

$0

$0

$0

$50,000
25,000
15,000
25,000
25,000

Third Year
Q4
Q1
Q2
Q3
Q4
50,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000
50,000
63,000
63,000
64,000
(63,000)
(63,000)
(64,000)
190,000
290
290,000
000 $ 100
100,000
000 $ 100
100,000
000 $ 100
100,000
000 $ 100
100,000
000

$0

$0

$0

$0

50,000
140,000 $
100,000
240,000 $

Appendix F

24

OPERATING CASH FLOW ANALYSIS

First Year

Description/Period (Month, Quarter or Year)

Q1
Cash Balance at Beginning of Period
Cash Flows from Operating Activities
+ Revenue earned (Sales)
+ Other Income
- Purchases/Materials
- Salaries
- Floor Employee Wages
- Rent
- Utilities
- Telephone
- Advertising and Promotions
- Office Supplies and Expenses
- Insurance
- Legal and Accounting
Subtotal: Cash provided by/(used in) Operating
Activities (Working Capital Requirement)
Cash Flows from Investment Activities
+/- Investments in Inventories
+/- Other Resources and Materials
+/- Capital Uses of Funds from Capital Budget
(Excludes Working Capital Requirement)
Subtotal: Cash provided by/(used in) Investment
Activities
Cash Flows from Financing Activities
+/- Owner Investments/Distributions
+/- Proceeds from Loans/Payments on Loans

$
$

Q3

Q4

Q1

Q2

Q3

50,000 $

50,000 $

50,000 $

50,000 $

50,000 $

50,000 $

50,000

$ 100,000

$ 100,000 $

229,500 $ 270,000 $ 297,000 $

15,000
16,500
18,000
85,990
147,290
167,970
29,160
38,880
48,600
45,000
45,000
45,000
1,300
1,400
1,500
30
30
30
10,000
10,000
5,000
900
900
900
10,000
10,000
10,000
-

324,000
24,750
133,220
48,600
45,000
1,500
30
5,000
900
10,000
5,000

$ 472,500
27,750
169,410
87,480
90,000
3,000
60
10,000
1,800
20,000
-

$ 540,000 $ 594,000 $ 648,000

33,000
36,000
36,000
212,220
252,500
355,780
106,920
116,640
126,360
90,000
90,000
90,000
3,000
3,000
3,000
60
60
60
10,000
10,000
10,000
1,800
1,800
1,800
20,000
20,000
20,000
5,000

63,000 $

64,000 $

25,780 $

44,180 $

32,120 $

$ (190,000) $

250,000
114,180
-

$
$

364,180
50,000
50,000

Q4

12,100 $

(190,000)

Third Year

Q2

- $ 148,500 $ 175,500 $ 202,500 $

8,250
9,750
11,250
12,750
54,000
54,000
54,000
54,000
9,720
19,440
19,440
45,000
45,000
45,000
45,000
1,000
1,000
1,100
1,200
30
30
30
30
5,000
6,000
8,000
10,000
900
900
900
900
10,000
10,000
10,000
10,000
5,000

$ (124,180) $

+/- Proceeds from Common Stock Sales/Repurchases

Subtotal: Cash provided by/(used in) Financing
Activities
Total Cash Flows (Outflows) during Period
Cash Balance at End of Period

Second Year

(12,100)
-

(25,780)
-

(44,180)
-

(32,120)
-

$ (12,100) $ (25,780) $ (44,180) $ (32,120) $

$ 50,000 $ 50,000 $ 50,000 $
50,000 $

Q1

50,000
-

(190,000)

$ (190,000) $

190,000

- $
50,000 $

- $
50,000 $

Q2

63,000
-

Q3

(63,000)
-

(63,000)
-

Q4

100,000 $ 100,000

(64,000)
-

190,000 $ (63,000) $ (63,000) $ (64,000) $

50,000
100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000

25

Appendix G: Pricing and Cost Analysis

Customer Pricing:
-

$35.00 per full day (up to 12 hrs.) of dog day care per dog.
$20.00 per half day (up to 6 hrs.) of dog day care per dog.
$210.00 per 7 full day week per dog.
$140.00 per 7 have day week per dog.

Included in pricing:
o
o
o
o
o

Indoor play time & exercise.

Outdoor play time & exercise.
Training reinforcement (for treats!).
2 full meals (1 for half day).
Water always available.

To determine total revenues:

55
Average number of dogs per
day 1st Year 2nd Quarter.
$1,650.00
Revenue earned in one day
during 1st Year 2nd Quarter.

$30.00
Average price of day care based on
discounts and regular pricing.
90
Estimated days in
average Quarter

$1,650.00
Revenue earned in one day
during 1st Year 2nd Quarter.
$148,500
Estimated total revenues earned
1st Year 2nd Quarter.

Pricing based on estimated cost per dog per month.

Food & treats are estimated to cost $50.00 per dog per month.
55
Average number of dogs per
day 1st Year 2nd Quarter.

$50.00
Estimated cost of food and treats
per dog per month.

$2750.00
*
Estimated monthly cost of
food and treats during 1st Year
2nd Quarter.

3
Number of months in a Quarter.

$2750.00
Estimated monthly cost of food
and treats during 1st Year 2nd
Quarter.
$8250.00
Total estimated cost of food and
treats for 1st Year 2nd Quarter.

All food and treats will be purchased during the prior quarter based on estimated average daily
number of dogs.

26

Appendix H: Potential Market Calculation

Total Dog Population Size for Portland Tri-Met area:

557,706
Population of Portland as
of July 2008.

2.67
National average for
individuals per
household.

208,879
Households in Portland
area as of July 2008.

208,879
Households in Portland
area as of July 2008.

0.372
Estimated percentage of
dog owning households
in the U.S.

77,703
Estimated dog owning
households in Portland as
of July 2008.

77,703
Estimated dog owning
households in Portland as
of July 2008.

1.6
National average
number of dogs per
household.

124,325
Estimated number of dogs
in the Portland area as of
July 2008.

63,328
Estimated households
living above poverty line.

Estimated Market Size in Portland Tri-Met area:

77,703
Estimated dog owning
households in Portland as
of July 2008.
63,328
Estimated households
living above poverty line.

47,813
Estimated households
above poverty line living
without children.

37,342
Estimated households
above poverty line, ages
25-64 and living without
children

0.815
Estimated average
percentage living above
poverty line.
0.755
Estimated percentage of
household without
children.
0.781
Estimated percentage of
households not in the
age range of 18 24 or
65+
1.6
National average dogs
per household.

47,813
Estimated households
above poverty line living
without children.
37,342
Estimated households
above poverty line, ages
25-64 and living without
children
59,747
Total Estimated Potential
Market Size

Source: (Dog Daycare Demographics)

27

Appendix I: Employee Amount and Cost Analysis

Cost Calculation per Quarter for Employees:
110
Estimated average daily
amount of dogs during 2nd
Year 3rd Quarter.
8
Total number of employees
needed to safely supervise
estimated amount of dogs.
5
Number of employees
needed at any given time.

60
*
Total number of hours to
be paid based on amount of
needed employees.
$540.00
*
Total amount of funds to be
paid per day per estimated
amount of employees.

15
Number of dogs under
supervision of one
employee.
3
Number of investors
working daycare facility
floor positions.
12
Number of hours per day
of operations.

$9.00
Rate of pay per hour per
employee.

90
Estimated amount of days
per Quarter.

7 1/3
Total number of employees
needed to safely supervise
estimated amount of dogs.
5
Number of employees
needed at any given time.
60
Total number of hours to be
paid based on amount of
needed employees.
$540.00
Total amount of funds to be
paid per day per estimated
amount of employees.
$48,600.00
Total estimated cost of
employees during Quarter.

Actual Amount of Employees Calculation:

165
Estimated average daily
number of dogs 3rd Year 1st
Quarter.
11
Total number of employees
needed to safely supervise
estimated amount of dogs.
8
Number of employees
needed at any given time.

15
Number of dogs under
supervision of one
employee.
3
Number of investors
working daycare facility
floor positions.
2
To ensure there is always
the estimated number of
employees needed at any
given time.

11
Total number of employees
needed to safely supervise
estimated amount of dogs.
8
Number of employees
needed at any given time.
16
Total estimated number of
employees to insure that
there is always at least 1
employee per 15 dogs.

28

Appendix K: Facility Layout

29

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30

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