"Business Plan: One Stop Pet Shop 1Business PlanOne Stop Pet Shop in Melbourne, AustraliaAssignment-2 MKT3006Business Plan: One Stop Pet Shop 2Table of Contents1. Executive Summary ................................................................................................................................... 42. Background ............................................................................................................................................... 52.1. Mission Statement ............................................................................................................................. 52.2. Business Goals .................................................................................................................................... 53. Marketing .................................................................................................................................................. 63.1 Market research .................................................................................................................................. 63.2 Market segmentation ......................................................................................................................... 73.3 Marketing plan .................................................................................................................................... 83.3.1 Products/services and target market........................................................................................... 83.3.2 Placement .................................................................................................................................. 103.3.3 Promotions and advertising ....................................................................................................... 103.3.4 Pricing policy .............................................................................................................................. 113. 4 Evaluation of marketing ................................................................................................................... 114 Operations ............................................................................................................................................... 124.1 Legal and licensing requirements ..................................................................................................... 124.2 Organizational structure and staffing ............................................................................................... 124.3 Insurance and security issues ........................................................................................................... 134.4 Business premises ............................................................................................................................. 144.5 Equipment required .......................................................................................................................... 144.6 Production process ........................................................................................................................... 144.7 Critical risks/contingency plans ........................................................................................................ 155 Financial projections ................................................................................................................................ 155.1 Capital expenditure forecast ............................................................................................................. 155.2 Sales forecast .................................................................................................................................... 175.3 Cash flow forecast ............................................................................................................................. 185.4 Projected profit and loss statement ................................................................................................. 195.5 Owner's personal expenses .............................................................................................................. 19Assignment-2 MKT3006Business Plan: One Stop Pet Shop 36.0 Environmental responsibility ................................................................................................................ 207.0 Eco-sustainability .................................................................................................................................. 208.0 Implementation Timetable ................................................................................................................... 219.0 Conclusions and future directions ........................................................................................................ 21References: ................................................................................................................................................. 23Assignment-2 MKT3006Business Plan: One Stop Pet Shop 41. Executive SummaryThe purpose of this business plan is to establish OneStop Pet Shop in Melbourne, Australia. The mission ofbusiness is to get recognizable market position by“Pet Shop is the one of theproviding wide range of pets, pet products and servicesbest opportunity thatto customers. The business raised $ 55000 as a loan forcontacts you at your home.the development of Pet shop. Owner is also invested $Passion to love with animals22000 in a business to strengthen the asset?s position ofis the key to run business.business. The most vital offerings of business includeMake animals beautiful,dogs, cats, birds, pet services and pet supplies like toystake care of them and freedetc. Marketing goal is to attract customers throughthem for the health willvarious strategies like promotion, advertising andenable us to pull customerswebsite development. A financial goal is to enhance 15%on our shop”,A Messagesales till the completion of one year of business. Infrom Owner of One StopAustralia, there are lot of opportunities for pet businessPet Shop.because Australian love pets. According to marketresearch pet business can be a very profitable inAustralia. There is a good market for pet businessbecause it is profitable and having more businessopportunities (powerhomebiz.com, 2011). Target market of One Stop Pet includes individuals,pet care professionals, design professional and government agencies. Business will segment themarket on the basis of geographic, psychographic and demographics. Pet shop will provideproducts and services according to specific needs of this target market to get the desired responsefrom them. Business will more emphasize on customer?spreferences and tastes to get moresustainable position pet shop will conduct research and development after completing the firstyear of business. The marketing plan of pet shop includes target market, pets, pet products, and pet services.Further, it includes market penetration pricing to attract the more customers in order to penetratein the market. This strategy can better help the business to accomplish the business objective ofsustainable market position. In relation to promotion, business will focus on advertising, salespromotion, personal selling, direct marketing, and website. Website will also use to place theproducts of business to attract the customers. Pet shop will comply with entire legal and licensingrequirements of Australian government. Business will adopt simple structure which comprises onowner, two part time sales persons, admin staff and customer service. Website of the pet shopwill be managed by outside consultants in this initial phase. Business will get the insurancepolicy for pets, business premises and for any threat or hazard. Pet shop will care about securityissues of pets and other business premises in case of any problem with animals and or business.Owner will purchase animals and various pet products from different markets and place them atshop for resale purpose after making finishing and development in products and services.Business made good projections about sales forecast, profit and loss statement and cash flows.Sales, profit and cash shows in future business will run smoothly as depicted in financialstatements.Initial and ending quarter sales forecast include $140000 and 203,666 respectively.Projected profit is also including$ 38000 and $47460. In business of pet shop it is projected thatduring the four quarters owner will not draw anythingfrom business except salary as depicted instaffing plan.Pet shop will also legally bound for environmental impacts so business will makeAssignment-2 MKT3006Business Plan: One Stop Pet Shop 5sure about any type of waste and other environment unfriendly hazard. For ecologicalsustainability pet shop will obey all the policies of NSESD. In future, pet shop has a plan toexpand business activities in relation to marketing, R and D, finance and others on widerhorizon. Further, it is recommended that pet shop should enhance its more sales and promotionalactives in future to pursue more customers.2. Background2.1. Mission Statement“Mission is tobecome a recognizable leader through providing our customers with wide range ofhigh quality Pet, petsupplies and pet grooming services at best price available. We invite you toshop and compare our prices with any other pet supply chain store, pet supply store, and massmarket or grocery retailer. We serve our customers by hardworking to provide not only the bestpet categories which include Cats, Dogs and Birds but also pet services and pet supplies likewashing of pet, health and safety, toys and gifts etc. in one stop pet shop”. 2.2. Business GoalsOur business goal is to attain a recognizable position in pets,pet products and services with ameasureable market share(10%) by the end of first 12 months working, according to the designand development of:? Innovative and beneficial pet products and services? Complementary pet products and accessories? Socially and environmentally products? Educating customers about various pet foods and diseases? Marketing objectives: ? Within the target market to establish relationships with veterinarians ? To implement campaign with target market of company through the use of localnewspaper advertisements, flyers and word of mouth.? Increase online presence of pet shop after one year through producing a websiteand mentioning thecontact information and name of company with onlineencyclopedias? To start a advertising and public relations campaigns to increase sales andawareness? Financial Objectives:? Providing pet and pet care services to increasing 10% sales till first six monthsand 15% till the end oftwelve monthsOur keys to success include:? Introduction of functional, innovative, beautiful, reliablepets and pet products ? deliver a competitive guarantee about products Assignment-2 MKT3006Business Plan: One Stop Pet Shop 6? Delivery of exceptional customer service ? Participation indesign and pet industry communities ? Help pet associations that rescue, train andpromote regarding humane treatment ofanimals ? Using of profits for new product development ? Promote pet health and safety3. MarketingMarketing is the satisfaction of customer at some profit or creating the profitable relationshipwith customers. Today companies focus on more marketing efforts to satisfy their existingcustomers and find new customers in the target market.Most vital marketing activities of OneStop Pet Shop will include marketing research, market segmentation, targeting, and four P?s ofmarketing and continues evaluation of marketing activities for quality products and services.Four P?s of marketing are considered as controllable elements of marketing plan that can enablethe business to get the desired response in the target market. Therefore, marketers are required tomake better strategies for them(family-business-experts.com, 2011).3.1 Market researchBusiness will be started in Melbourne, Australia with aname of “One Stop Pet Shop”.It is widespread conceptthat Australian like the pets so there is lot of marketopportunities. In Australia, companies in pets industry sellpets and pet products and services. The common petscomprises on cats, fish, dogs and rabbits. Pet stores offerwide range of accessories and products which includingcollars, pet food, kennels and litter boxes. The services ofpet businesses include veterinary to insurance andgrooming services. In the recent years Australian societyhas been tremendous changed but the Australian?s valueand place for their pets remain constant. Australians arepet loversand 63 percent of households having a one pet intheir house. Further size of Australian pet market includesthe following facts and figures according to the 2006survey of National people and pets (National People andpets Survey, 2006): In Australia, there are lots ofopportunities for Pet Business? Twelve million Individuals in Austria arebecause Australian love Petsassociated with pets.? From 7.5 million households, 63% haveown pets? Australia in the world, having the highestoccurrences of pet ownershipAssignment-2 MKT3006Business Plan: One Stop Pet Shop 7? 91 percent of pet owners remain close with their pets and considered them asfamily unit? For more than 83 percent of Australians, pets were considered as normalchildhood?s part? Those Australian who do not presently own a pet, 53 percent from which wouldlike to own in futureFurther, according to the Australian Institute, Australian with a 2.3 million cats, 3.6 million dogs,13.2 million fish and 7.5 million birds share their homes (Denniss, 2004). In Australia, fish andbirds are more in number as compared to cats and dogs due to people have their own birds andfish. Therefore, dogs are available in highest quantity in Australian homes (Petnet.com.au, 2011)In the light of above facts and figure about market size, Melbourne is good location for thisbusiness because overall Australian likes pets. According to the ABC census of population andhousing from 1976 to 1996, the population statistics of major cities are depicted in figure below(Dwyer, 2009). Market research contributes greatly to understand the consumerbehaviors(mrsa.com.au, 2011). Therefore, in the light of this finding business of pet shop learnedthat in the future pet shop will greatly focus on research and development about marketingactivities.Population Statistics from 1976 to 19963.2 Market segmentationIt is the identification of market portions that are unique from one another. Target market is thechoosing of market segment to appeal for products and services (Coutler and Armstrong, 2005).Segmentation enables the company to better meet the needs and wants of potential customers.Business of “One Stop Pet Shop” targets the segments which include:Geographic Segmentation:Target segmentbased on metropolitan area of Melbourne and broadercommunity. This type of segmentation will target the customers on the basis of size or density,region and climate.Assignment-2 MKT3006Business Plan: One Stop Pet Shop 8Demographic segmentation: Target segment include families with children, single adults andmarried couples, above and middle income groups, entire levels of education from entire socialgroups with ethnic backgrounds. Further, age/generation, gender, occupation and religion criteriawill be used to target a demographic segment.Psychographic segmentation:Pet owners who are crazy about the health of their pets furtherwant safety for their pets. This segmentation will target to various social classes, their life stylesand personalities. Segmentation uses to better comprehend the market, find the needs of specific customers, it helpfor the selection of best media, support to identify requirements of repositioning, input theprocess of new product and identify opportunities or gapes in the market(scribd.com, 2011). Tobetter support this segmentation strategy, my business will attend various industry related tradeshows and enter in competitions. This strategy will enables the business of “One Stop Pet Shop”to establish partnership with organizations and people that can support the business inestablishing the highest level of customer services and product performance. Good segmentationand targeting can help the company to position the product in the mind of customers (Coutler andArmstrong, 2005). Business of Pet Shop will create differentiation on the basis of unique pets,products, marketing channels, services and people. Market segmentation provides variousdisaggregating markets to improve profitability with lake of sales resources and investment(Nelson, 2010). Segmentation will enable the pet shop business to get more benefits throughmore accurate and effective communication to customers in relation to their needs. Marketsegmentation helps to identify the various growth opportunities for the business (Nelson, 2010).Therefore, business of pet shop will get help from market segmentation to attract its targetmarket. Instead of introducing traditional marketing mixes to consumers, market segmentationwill help the pet shop to mold marketing mix program that is more suitable for target market. 3.3 Marketing planA marketing plan provides detail to reader how the business plan attract, retain and educatecustomers.Advertising or attracting customers include information how the target market willbe learnt regarding the product (Harmozi, Sutton, McMinn, and Luceo, 2002). Marketing planidentify important targets and objectives that must successfully coordinate the various elementsand their marketing mix?s variables (Coomasaru, Day, and Lee, 1996). Business will use variousmarketing strategies that will enable One Stop Pet Shop to easily target women, men, pet careprofessionals, government agencies and design professionals within the target market.Marketingplan of “One Stop Pet Shop” include four Ps which are depicted below. 3.3.1 Products/services and target marketBusiness will start to offer products and services after doing reach on target market which willhelp the business to understand the preferences and tastes of Australian customers. The “OneStop Pet Shop” will have three primary streams of revenue.Assignment-2 MKT3006Business Plan: One Stop Pet Shop 91. The first source of revenue will come from the sale of live animals which includes cats,birds and dogs. Company will provide complete package of pets to customers. Thecompany will obey entire Australian government laws about live animal sales whilesimultaneously ensuring the human handling and safety of pets.2. The secondary source of revenue will be based on pet services like day care, overnightcare, washing of pets, care services at customer?s door step, classes for behavior ofanimal and their training, grooming of pet and special event planning.3. The third revenue stream based on sale of portrait and photography of pets, accessory andgift shop. Pet shop will provide quality services and products to the pet lovers. The pets include cats, birdsand dogs.Entire products and services will be tailored according to the needs and demands of thecustomers. Today in the era of competition, it is necessary for every organization to betterunderstand the linking and disking of its potential customers. Further, pet shop business willintroduce innovative and unique products and services to Australian customers to better satisfythem.It has been found that loyal and satisfy customers are heavy users of organizationalproducts. Therefore, organization should care about this strategy(Coutler and Armstrong, 2005).Target market: It includes individual customers, pet care professionals, Government agenciesand design professionals. Design professionals can recommend tailored solutions of products toexisting pet owners. Pet Care professionals can assure, inform and influence owners of pet abouthealth benefits of products for their pets. Government agencies like police and fire departmentscan also use pets like dogs to find criminals and to visit any other place for precautionarymeasures. Lastly, individuals are heavy users of pets in Australia as depicted in market researchportion. Individuals may include families with children, single adults, married couples, entireeducation levels and social groups with ethnic backgrounds.Therefore, I have selected thistarget market to establish brand credibility, product reliability, and brand recognition. Productsand services have great importance for target and test marketing(go4funding.com, 2011). Figurebelow shows various products of pets.Assignment-2 MKT3006Business Plan: One Stop Pet Shop 103.3.2 PlacementMarketing placement include set of independent bodies involves in making a product availableor use for customers (Coutler and Armstrong, 2005). Placement of pet shop will also involve allactivities to make available the products from business unit to final customers. Business alsofinds good attractive place for pet shop in Melbourne and shelf the products in prominent placesof shop. Further, placement will also make in relation to competitors. Firstly company will focuson direct marketing channels to provide the product to customers.Further, internet facilities willbe used to place the products on a company?s website. Website will help the company to provideevery type of information to customers and give them access to place orders. Company willprovide products according to their online orders.Website will contain location of company, itsinventory and products, and contact information. Today it is the good cost effective placementtool for many companies. It is easy for customers to place order from their homes and getdelivery. On the other hand, it will also beneficial and advance method for company to makeavailable the products or services to its potential customers.In the era of globalization, to copewith competition organization are focusing on placement and giving importance to it as goodpromotional activity. A good placement of product leads to good promotion of product.Therefore, marketing staff will place the products in the prominent place of premises to betterattract the customers. 3.3.3 Promotions and advertisingPromotion is unselfishly persuasion of customers. In this marketing plan business of one stop petshop will use various promotional tools to get the desired results from target market. Businesswill use personal selling, mass marketing, direct mailing techniques, various types of advertising,relationship marketing, public relations and many other marketing tools to promote its productsand services. Firstly company will use post cards to the advertisement of its products and services. In thiscontext, company will find the addresses of entire persons within the radius of 5-mile around petshop. Next, post card will be composed to announcing the company?s presence to them.This willhelp the company to provide awareness to neighbors about the existence of company. It will alsohelp to develop community relations which will be very beneficial to the business of One StopPet Shop. People try to buy animal food items or other services from near to their homes so ourbusiness will maximum try to introduce with neighbors and let them to know where our businessis!The business will also use most vital promotional tool called advertisement to promote orcommunicate the products or services to pet customers. In advertising campaign, business willuse Radio, Television, Print Ads, and Direct mail Outdoor Advertising. In addition, in externaland internal communication business will use newsletters, newspapers, e-mail (electronicmedia), relationship marketing and public relations. Public relations will include communityoriented programs and events sponsorship, partnerships. It is necessary that message shouldcreative in entire types of advertisements to get desired response. Company can put stickers onAssignment-2 MKT3006Business Plan: One Stop Pet Shop 11various waiting room magazines (psprint.com, 2011). Moreover, on search engines company willplace traditional print ads and advertisements. The business of pet shop will also use internetbase strategy. Preliminary searches on internet will help the many people to know about petproducts and services.In this way potential customers can easily find the business and get theirdesired product. In addition, email marketing will be the good source of mass marketing for petshop. In this process, customers sign up on website. Company can get email address ofcustomers and send them emails about special products and new offerings. The main advantageof this method is that it will be free and company will not have to pay any amount like postageetc. The URL of website will bewww.onestoppetshop.com.au.Website will work to attract massmarket. It will be the good tool for the business of pet shop. By using website customer can placetheir orders and post their queries so that organization will easily satisfy them accordingly.Therefore, in last it is stated that business of pet shop will try to utilize maximum tools ofpromotion to get the desired response in the target market. 3.3.4 Pricing policyThe objectives of pricing are to get survival, current profit maximization, market shareleadership and product quality leadership (Coutler and Armstrong, 2005). Business of Pet Shopwill determine prices on the basis of cost of operations or manufacturing and according to thebearing capacity of the market. In short, initially business will apply or use market penetrationpricing strategy. This strategy will help the company to accomplish the desired goal of 10%market share by the end of twelve months. According to this strategy business will charge lowprice for pets, pet productsand services in order to penetrate in the market. Strategy will also helpto attract new customers to opening the Pet Shop for longer hours. Further, prices will be chargedon the basis on the basis psychographic and geographically according to the target market. Incommunity areas company will use Zone Pricing strategy and offering same prices to withinzone customers but it will exceptional in case of some services. Many factors would be affectedon pricing policy of company like competition. In response to competition, market penetrationstrategy and Innovation in company?s offerings will help the company to cope with competition.Therefore, innovation and uniqueness in offerings, processes, customer dealings and othermethods of company will also enable the business to remove the effect of various internal andexternal factors. Price is a good tool that enables the organization to compete in the market.Today many companies are getting competitive advantage on the basis offering comparativeprices to their customers(Coutler and Armstrong, 2005). 3.4 Evaluation of marketingMarket research will help the business to identify new pet?s customers, comprehend customersatisfactions, determine new product offerings and help to conduct a SWOT. Marketing activitieswill be evaluated on the basis of various success measures like marketing objectives. Forexample, to increase10 % markets share.Further, success measures include completion of actiondates, results, accomplishment of strategies and goals, new or repeat customers, average size ofcontracts, win rate on sales and revenue. These are the most vital success measure for One StopPet Shop that will enable the company to evaluate the performance of marketing. Further,outcomes of sales forecast and projected income statement will also be used to evaluate themarketing department. As the increases challenges to marketing department of company, CEOAssignment-2 MKT3006Business Plan: One Stop Pet Shop 12must regularly make sure that marketing department should have a strong leader who direct andcoordinate with well-organized team (Kotler, 2004). Business of pet shop will also try to copewith various issues and challenges to make the performance of marketing department. Factorsthat influences on marketing and distorts its performance include technological, economic,environmental, Australian country rules and regulation and political factors (Coutler andArmstrong, 2005). 4 OperationsBusiness of Pet Shop based on trading operations. Most pets and products will be purchasedthrough suppliers and then after making furnishing actions sell them to potential customers.Further, business will make sure licensing and legal requirements, simple organizationalstructure and staff selection, required equipment, business premises, and security and insuranceissues. The detail of entire operational considerations is depicted below.4.1 Legal and licensing requirementsTo start a sale of animals requires license from local authority of Australia. Local authority ofMelbourne will inspect the premises for suitability before granting a license. The business ofOne Stop Pet Shop will arrange all premises according to the requirements of the licensingauthority. In Australia, three legal business structures are available which include soleproprietorship, partnership and Joint Stock Company (Schaper and Volery, 2011). In Australia,38 percent of total businesses comprises on sole proprietorship. Partnership comprises on 15percent and Trust is 18 percent while part of registered limited companies comprises on 26percent of total businesses. Remaining 3 percent part comprises on other businesses (AustralianBureau of Statistics, 2007). According to these structures sole proprietorship business is mostsuitable for pet shop. In Australia, the entire operation of pet shop is registered according to the1951 Act of Pet Animals.This act protects the sold pets so in relation to this business of petshop will license from local government. In Melbourne, local authorities are responsible toimplement various animal related laws in the area. Further, authority has a right to take action ifpet shop keeping pets in inadequate conditions.Moreover in Australia, according to animal Act2006, persons will be responsible for welfare and care of animals those have main responsibilityfor animals whether temporary or a permanent (pictures-of-cats.org, 2011).4.2 Organizational structure and staffingBusiness of One Stop Pet Shop will be used flat organizational with fewer levels of management.Owner will be the main person in this business.An organizational structure refers to formallayout of jobs within the organization(Robbins and Coulter, 2007). Business of pet shop willdesign its structure to coordinate its diverse tasks.According to structure owner will easily handleentire staff and other activities.The chart of One Stop Pet Shop is depicted below.Assignment-2 MKT3006Business Plan: One Stop Pet Shop 13SeniorManagement AdministrativeOperations Staff Staff Customer Facilities Sales - Accounting Administrative Service Management Marketing Initially, the business of pet shop will have 2 full time employees, the owner (will perform thework of senior management, operational and administrative head), and office / InventoryManagement will be responsible for accounting, administrative and customer services activities.All employees will also be responsible for demonstrating the company?s products and services tothe target market. When the sales begin to climb, company will hire one part time salesrd th representative to take over office management, inventory and other sales activities. In 3 or 4quarter company will also have a plan to hire a more sales persons to enhance the businessnationally. The staffing plan of One Stop Pet Shop is as under.Staffing Plan Q1 Q2 Q3 Q4Owner $15,000$15,000$18,000$18,000 Sales Representative (Part Time) 0 $8,000$8,000$17,600 Inventory/Office Management/Customer Service $9,000$9,000$9,900$9,900 2 $3$3$4 Total StaffTotal Salary $24,000$32,000$35,900$45,500 4.3 Insurance and security issuesAfter the start of business insurance will be required. Owner will contact insurer and elucidateabout the operations of business. The pet insurance policy should cover followings:? Theft of animals, stock, premises contents? Breakdown of filtration and heating equipment? Any damage to building? Loss related to profits? Legal expenses, costs and damages in case of employee injury? Legal damages, expenses and costs in case of members/customer of the general public isinjured or their property is stolen/damaged within the business premises? Further, business will also consider extras policies such as theft by employeesAll these issues created security issues and problems. Insurance has an ability to cover all theseissues and damages in an appropriate manner or according to policy. Therefore, One Stop PetShop business will also adopt insurance policy.Assignment-2 MKT3006Business Plan: One Stop Pet Shop 144.4 Business premisesOne Stop Pet Shop will take effective actions to prevent and control the infestation of premisesand animals with external vermin and parasites. The burning of any bedding or debris andexcreta on the premises will be prohibited.The Business of One Stop Pet Shop requiredfollowing premises:? Land, covered portions and cages for animals.? Towels, nest boxes and beddings to ensure the conformability of animals.? Wash area is also required on the premises? Animal display portion should have sufficient and proper ventilation in order to keptclean and fresh air at all times? Exercise area for animals? Where house for feeds, products etc.? Further, any other will be required for the safety and health of animalsThe premises of pet shop must be capable to be secured in every aspect in relation to animals(Burton, 2008).4.5 Equipment requiredThe business required equipment for proper disposal or storage of waste material to controlinsects, obnoxious odors and vermin. Further, pet grooming equipment, cages, dog trainingequipment, dog beds , pet toys, vet equipment, office equipment includes computer, printer,shelves, fire retardants etc. business will focus on innovative equipment of office interiors toattract the customers. To buy the needed equipment and items for pet store is necessary forbusiness. Owner should find supplies from wholesalers. In this way business can get better andcheap equipment for pet shop(Crowe, 2011). Further, special equipment for pets that pet shopwill purchase include pet tube, pet tube with Ramp, Petlift Bathing Stations, Dog Dryers, DogScissors/Shears, Andis Clippers and Accessories, electric and Hydraulic tables, Cage Banks,Cats and Dog Cages, Stools and Condos.4.6 Production processThe production process of pets, pet products and pet services is as under:? Pets and pet products like toys will be purchased from suppliers and after makingsufficient arrangements sell them to customers ? But maximum animals will be born on their cages also. With the passage of time aftertheir grooming and good age, they will also display for sale. Therefore, for animals notonly organic production process but also purchased from suppliers.? Pet services will be provided by the business within the premises of business or at thehome of pet owner? Further, orders can be taken on phone calls andwill deliver according to therequirements of customers? Pet food and other supplies will also be purchased from suppliers for further action? Other necessary raw material and finished will also got from suppliersAssignment-2 MKT3006Business Plan: One Stop Pet Shop 154.7 Critical risks/contingency plansIn this business risk may involve biological, physical or chemical for washing of pets. Further,theft and damage of property, premises, building, equipment, animals and other accessories arealso considered as critical risks for pet shop in Australia. Moreover, damage during delivery,production process and at the time of purchasing raw material. The One Stop Pet Shop will covermaximum risks through insurance policy.In addition, precautionary and safety measured willalso be taken to tackle various issues and risks. Emergency plan include ambulance services,emergency rescue contact numbers and contact with police station in case of robbery or theft.Equipment related to fire-fighting will be readily available and trained staff with practiced in itsproper use. Business will be careful about some fire retardants that may be toxic for animals.Entire staff should be aware risk associated with the transfer of infectious microbialcontamination and diseases when cleaning enclosures, handling animals and practices that canreduce these types of risks (Burton, 2008).5 Financial projections Financial statements are essential part for the success of any small or new business. The principleobjective of income statement is to find the profit or loss position of enterprise. Balance sheettells the financial position of enterprise in the shape of assets, liabilities and owner?s equity. Cashflow statement shows the capacity of entrepreneur to manage the flow of cash (Harmozi, Sutton,McMinn, and Luceo, 2002). Business expects that sales growth will steadily enhance and cashflows will also increases steadily. Initially business conduct capital expenditure forecast, salesforecast, projected profit and loss account and projected cash flow statement. Finance is thestrength of every business so manager should make investment, financial and assets managementdecisions with great concern(Horne, 2004).5.1 Capital expenditure forecastIn capital expenditures business started with $ 35000 expenses to fund, taking $55000 as a loanand owner will be invested $ 22000 as investment. Initial Funding Detail Amount( $)Beginning Expenses to fund 35000Beginning Assets to Fund 42000Total Required Funding 77000Assets Break Up: Non-cash Assets2000Assignment-2 MKT3006Business Plan: One Stop Pet Shop 16Cash40000Additional Cash0Starting Cash Balance 40000Total Assets 42000Capital and LiabilitiesLiabilities:Current Loan 55000Long Term debt 0Account Payable 0Other Liabilities 0Total Liabilities 55000CapitalInvestment 0Owner?s capital 22000Total Investment/Capital 22000Start Up Loss (startup (35000)expenses)Total Capital13000Total Liabilities and Capital 42000Total funding77000The breakup of expenditure is depicted in next page.Expenses Break UpExpenses Amount( $)Animalsand Products 6000Prototyping and other testing 5000Working Capital 12000Fees: Licensing, Legal 2000,InsuranceWebsite Design 1000Marketing and Advertising 4000BudgetOffice Equipmentand Interiors 2000Software 500Miscellaneous and Unforeseen 1000costs and PurchasesRent 1500Total Initial Expenses 35000Assignment-2 MKT3006Business Plan: One Stop Pet Shop 175.2 Sales forecastIn first, period $ 70000 sales forecasted according to the trends of competition and market. Inrd th second it increased 10% and then 3 and 4 quarter it also increases 15% as the basic financialpurpose of the business. Overall sale is projected to improve tremendously once the business isdeveloped.Owner is expected strong ratio of growth from beginning operations as depicted inbelow projected sales. The table of sales forecast shows steadily increase in forecasts duringentire four quarters. In marketing, sales have greater value because sellers are responsible tounselfishly pursue the customers(Coutler and Armstrong, 2005).During all periods of sales petshop will focus on entire target market to get the desired response. It is expected that sales mayfluctuate seasonally for pet care and design due to the budgetary changes of governmentagencies.Sales ForecastsQ1 Q2 Q3 Q4Periods70,000 77,000 88550 101,833Pets30,000 33,000 37,950 43,643Pet Products40,000 44,000 50,600 58,190Pet ServicesTotal Sales 140,000 154,000 177100 203,666In depicted diagram, most of sales revenue will be generated from live animals then pet servicesand pet products subsequently. It shows that the primary target area of business will be to selllive animals. 2,50,000 2,00,000 Q1 1,50,000 1,00,000 Q2 50,000 Q3 0 Q4 Pets Pet Pet Services Total Sales Products Assignment-2 MKT3006Business Plan: One Stop Pet Shop 185.3 Cash flow forecastThe projected cash flow statement of “One Stop Pet Shop” shows various inflows and outflowsof cash. It shows the movement of cash in various periods. It is assumed that as sales forecastcash flow will also increases. Below depicted cash flow shows projection from January 2012 toDecember 2012.Projected Cash FlowCash Inflows Q1 Q2 Q3 Q4Cash from operations140000 154000177100203666cash from receivable 0 0 0 0Operating Cash Inflow 140,000 154,000 177,100 203,666Other Cash InflowsEquity Investment 22000 0 0 0Borrowing 55000 0 0 0Sales of Business Assets 0 0 0 0Increases of A/P 0 0 0 0Total Other Cash Inflows 77000 0 0 0Total Cash inflows from operations and others 217,000 154000 177100 203666Cash OutflowsA/P Decreases 0 0 0 0A/R increases 0 0 0 0Asset Purchase 0 0 0 0Payroll 24000 32000 35900 45500Sales and Marketing and other Expenses 2500 2500 2500 3000Insurance 0 0 0 240Web site management 1000 1000 1000 1000Business travel 1500 1500 1500 2000Utilities 1500 1500 1500 1500Miscellaneous 1500 1500 1500 1500 Total Cash Outflows 32000 40000 43900 54740 Net Cash flow 249,000 194000 221000 258406Cash Balance 249,000 194000 221000 258406Assignment-2 MKT3006Business Plan: One Stop Pet Shop 195.4 Projected profit and loss statementBusiness of pet shop will work at a profit from first quarter to last as the sales forecast. It isprojected that business will get more profit in first quarters then will focus on long termsustainability. To get the market sustainability is the objective of every business. The basicpurpose of every business is to get and enhance profitability position of the business (Horne,2004).Business of pet shop also has a vital objective to get recognizable market position.Thisstrategy will help the business to compete with other players in Melbourne. After one year, tomaintain and gain more sustainable position business will invest in research and developmentafter getting the initial response from target market. Business of pet shop has projected a goodprofit margin from first to end quarter of business. The projected profit and loss of One Stop PetShop is depicted in next page.Projected Profit and Loss StatementPeriods Q1 Q2 Q3 Q4Sales 140000 154000177100203666Cost of Goods Sold 70000 69300 79695 8146670000 84700 97405 122200Gross Margin In dollars In dollars In dollars In dollarsOperating Expenses 24000 32000 35900 45500Payroll2500 2500 2500 3000Sales and Marketing and otherExpensesInsurance 0 0 0 240Web site management 1000 1000 1000 1000Business travel 1500 1500 1500 2000Utilities 1500 1500 1500 1500Miscellaneous 1500 1500 1500 1500Total Operating Expenses 32000 40000 43900 54740Net Profit 38000 44700 53505 67460Profit Margin 27% 29% 33% 33.12%5.5 Owner's personal expensesIn business, personal expenses of owner are referred to drawings.If owner withdraw cash ortaken away equipment to its home from business, it is called drawing in accounting. But in thebusiness of pet shop it is planned and projected that during the four quarters owner will not drawAssignment-2 MKT3006Business Plan: One Stop Pet Shop 20anythingfrom business except salary as depicted in staffing plan. Further, with respect to owner?spersonal expenses will be started after one year or completion of these four quarters of initialbusiness plan. In the business owner has more importance but his business will be started with$55000 loans so owner has decided that he will not draw any amount or thing from businessduring the first year. Therefore, after the completion of these four quarters the plan will bereviewed according to the policy of owner?s personal expenses.6.0 Environmental responsibilityVarious changes in external environment of business called for pet market to establish a newmarketing strategy. Market of pet performed quantitative research and conducted a SWOT toidentify opportunistic areas.These results help the business with related to three strategic changeswhich comprises on elimination of large breed dog inventory ( only sell small dogs),development of new products like pet gifts, and addition of delivery services. Business of petshop has implemented these environmental changes. Further, business make a plan to keep theenvironment clean that will be beneficial for pets as well as for customers. Pet shop will preventto any pet escaping from the premises. One Stop Pet Shop is committed to protect theenvironment from any type of hazard or loss. The products and offerings of business will not provide any type of harm to customers. Inaddition, business will act to prevent from the losses of natural resources and biodiversity.Business will also reduce its waste through various waste management techniques. Business willemphasis on proper washing the animals, take care for their health and other safety precautions.Caged of animals must be maintained at humidity levels and temperatures that diminish distress.Temperature of room must be minimum 30 degree Celsius and not fall below 15. Entire wasteproducts like bedding, faeces, dead animals, food wastes should dispose of hygienically andpromptly, and according to local government authority?s requirements (Burton, 2008).Business of pet shop will be legally bound for environmental impacts so that One Stop Pet Shopwill make sure about any type of waste and other environment unfriendly hazard. Doing businessaccording to the requirements of environment bring many benefits for business. Business of Petwill act in an environmentally and socially responsible way to perform the business activities.Business thinks that in the way environmental responsible business can help the Pet Shop to getsuccess in the long term. In Australia, national retail association directed to educating variousretailers on the economic and environmental advantages of enhanced environmentalperformance. It is the liability of every organization to make strategies that enable them to moreenvironmental responsible (nra.net.au, 2011).7.0 Eco-sustainabilityOne Stop Pet Shop will be committed to implement ecological sustainable practices in thebusiness. In Australia, changes have been occurred with respect to political, social and economicway of life and its behavior toward the environment. In Australia, government has made“National Strategy on Ecological Sustainable Development” to cope with these issues. Businessof pet shop will follow all the consideration of this government authority.NSESD sanctionspolices attempt to integrate environmental and economic goals, activities and policies, ensureAssignment-2 MKT3006Business Plan: One Stop Pet Shop 21valuable environmental assets of Australia, provide equity between and within generations,address various environmental risk problems and identification of global view of ecologicalsustainability development (skwirk.com.au, 2011). Therefore, business of pet shop will obey allthe policies of NSESD. According to the 516A section of 1999 Act for Environment Biodiversityand Protection Conservation ( EPBC Act), commonwealth businesses have a constitutional requirements to obey their environmental performance and how they consistent with and due the(ESD)ecological sustainable development?s principles (environment.gov.au, 2011). Pet shop willget the more benefits to make its business according to the government constitutions of ESD.Government of Australia has made many strategies to educate for sustainable environmentalfuture which include resource management, physical surroundings, partnership and networks(Department of Environment and Heritage, 2005).8.0 Implementation TimetableThis implementation timetable of Pet shop prepared on the basis of six months activities beforeand after the start of business. Each activity has a specific start and end date. Implementation Time Table Start dateEnd dateBusiness License 1/9/2011 30/9/2011Building and renovation 1/9/2011 30/10/2011Recruitment 15/9/2011 15/10/2011Training of Employees 1/11/2011 15/11/2011Marketing and Advertising1/9/2011 31/03/2012Equipment purchase 15/9/2011 15/10/2011Completion of Website 1/10/2011 30/10/2011DevelopmentBranding11/1/2012 30/11/2011Beginning of Operations1/1/2012 1/1/2012Sales promotions01/1/212 31/3/2012Sales feedback 1/1/2012 31/03/2012st Financial statements of 1 Q 31/03/2012 31/03/20129.0 Conclusions and future directionsThe One Stop Pet Shop will startits business with initial funding of $77000 which is comprisesof $35000 initial expenditures. Business has projected good sales forecast, profit and cashinflow. Various marketing, operational and financial strategies will help the business of pet shopto accomplish objectives. It is proposed that till the end of first year business will complete entireprojections and then starts to run smoothly. Company website is a good tool to attract and dealAssignment-2 MKT3006Business Plan: One Stop Pet Shop 22customers. All these strategies will help the business to compete with other players and get longterm sustainability. The projected financial results of all quarters are favorable for business ifthey would be completed accordingly. Great efforts and enthusiasm of motivated staff arerequired to achieve these purposes. Further, business has made various actions about legal,environmental responsibilities, ecological sustainability, licensing and other vital requirements ofbusiness.Once the business of pet shop reaches an adequate profitability level and enhances a cashreserve, it has a plan to invest portion of profit onR & D of existing products and operationalimprovements, new products, and expand sales and marketing efforts on extensive level. Further,after one year some percentage of profit will also spend on low risk financial instruments tostrengthen the financial system of business. If the business does not earn a profit pet shop will besought to finance R and D activities. Further, after the completion of four quarters business willbe financed on employee bonuses, financial instruments and charitable giving activities.Business should make every effort to recover escaped animals.Disinfection and cleaningchemicals should be selected on the basis of their safety, suitability and effectiveness. All theseproducts should be utilized according to instructions of manufacturers (Burton, 2008). Further,after one year 10% profits should be used to provide bonuses to employees. More efforts andbudget will be used after one year for research and development activities. Therefore, businessshould strengthen its competitive strategies and introduce more innovative pets and products tocustomers; it would help the business to attain sustainable market position. Moreover, in the eraof globalization sophisticated technology has more value to better cope with competition. Inrelation to technology pet shop will introduce more technological equipment for pet care andservices. This strategy will also help the organization to get sustainability in the market throughinnovation.Assignment-2 MKT3006Business Plan: One Stop Pet Shop 23References:Australian Bureau of Statistics, (2007) „Counts of Australian Businesses, including Entries andExits, Canberra: Cat. No.8165.0,Burton, R., (2008) „Animal Welfare Code of Pracactice: Animals in Pet Shops?, NSWDepartment of Primary Industries.Coomasaru, C., Day, J., and Lee, S. (1996) „Developing a marketing plan forLemonhead?,Management Decision, 34(8), pp.17-24.Coutler, P., and Armstrong, G., (2005) „Principles of Marketing?, 6th,Canadian Edition, Canada:Pearsons Educaiton Inc.Crowe, C. (2011) „How Do I Start My Own Pet Store Business??, Retrieved from eHOWmoney:http://www.ehow.com/how_6506324_do-own-pet-store-business_.htmlDenniss, R. (2004) „Overconsumption of pet food in Australia?, The Australia Institute,Department of Environment and Heritage, (2005) „Educating for a Sustainable Future?,Department of Environment and Heritage,Dwyer, B. (2009, April 22)„Pet Market Analysis Australia - Dogs, Cats], Retrieved from GoLeftfield: http://www.brucedwyer.com/market-analysis-articles/53-pet-market-australia.htmlenvironment.gov.au. (2011) „Ecologically sustainable development?, Retrieved from AustralianGovernment: Department of Sustainability, Water, Environment, Communities and Population:http://www.environment.gov.au/about/esd/index.htmlfamily-business-experts.com, (2011) „4 Ps OF MARKETING: Product, Place, Promotion andPrice?, Retrieved from Family buisness Experts: http://www.family-business-experts.com/4-Ps- of-marketing.htmlgo4funding.com, (2011) „The Importance of Product and Market Testing for Small Businesses?,Retrieved from Go 4 Funding: http://go4funding.com/Articles/Small-Business/The-Importance- Of-Product-And-Market-Testing-For-Small-Businesses.aspxHarmozi, A. M., Sutton, G. S., McMinn, R. D., and Luceo, W. (2002) „Business Plan for New orSmall businesses: Paving the path to success?,Management Decision, 40(8), pp.755-763,Horne, V. (2004) „Fundamentals of Financial Management?, Pearson Education Limited,Kotler, P. (2004). „A three part plan for upgrading your marketing department for newchallenges?,Strategy and leadership, pp. 32(5), 4-9.Assignment-2 MKT3006Business Plan: One Stop Pet Shop 24mrsa.com.au. (2011) „Australasian Journal of Market and Social Research?, Retrieved fromAustralasian Journal of Market and Social Research:http://www.mrsa.com.au/index.cfm?a=detailandid=128andeid=31National People and pets Survey. (2006) „Pet Net?, Retrieved fromhttp://www.petnet.com.au/pet-statisticsNelson, C. (2010) „Market Segmentation?, Retrieved from Foreseechange:http://www.foreseechange.com/mktseg.htmnra.net.au. (2011) „Environmental Sustainability and Carbon Tax?, Retrieved from NationalRetail Assosiation: http://www.nra.net.au/environmental-sustainability---carbon-tax.htmlPetnet.com.au. (2011) „Pet Statistics?, Retrieved from Pet Net: http://www.petnet.com.au/pet- statisticspictures-of-cats.org. (2011) „Laws on domestic cat breeds wild cat species and animal rights lawenforcement?, Retrieved from Pictures of Cats: http://www.pictures-of-cats.org/Laws-on- domestic-cat-breeds-wild-cat-species-and-animal-rights-law-enforcement.html#Australiapowerhomebiz.com. (2011) „Home-based Businesses for Pet Lovers?, Retrieved fromPowerhomebiz: http://www.powerhomebiz.com/vol61/petlovers.htmpsprint.com. (2011) „Pet Store Marketing: Ideas and Resources?, Retrieved from PS Print:http://www.psprint.com/resources/business-marketing-plans/pet-stores/pet-store-marketing- ideas-and-resources.aspRobbins, S. P., and Coulter, M., (2007) „Principles of Management?, Prentice Hall Inc,Schaper, M., and Volery, T. (2011) „Entrepreneurship and Small Business?, Milton, Queensland,3rd Asia Pacific edition: John Wiley and Sons,scribd.com. (2011) „Chapter 2: Market Segmentation?, Retrieved from Scribd:http://www.scribd.com/doc/10148305/Market-Segmentationskwirk.com.au. (2011) „Ecological sustainability?, Retrieved from SkWirk:http://www.skwirk.com.au/p-c_s-16_u-132_t-383_c-1341/ecological- sustainability/nsw/ecological-sustainability/australia-in-its-regional-context/challenges-for- australia-populationAssignment-2 MKT3006"