Competitive advantage be over existing grooming businesses

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Reference no: EM132292016

Susan Dovi is a single, 31-year-old wife and mother, who wants to start her own company. She has no previous business experience but has an idea for marketing a mobile animal-grooming service with an approach similar to that used for pizza delivery. When a customer calls, Susan will arrive in a van in less than 30 minutes and will provide the grooming service. Many of her friends think the idea has promise but dismiss her efforts to seriously discuss the venture. However, Susan is not discouraged; she plans to purchase the van and the necessary grooming equipment. She is hopeful that her business loan will be financed through her local bank where she has maintained a relationship for several years. Susan would like to hear your suggestions and recommendations.

Questions 1-6 is worth 5 points, question 7 is worth 10 points

1. Susan is considering having her bank process her business loan as an SBA 504 guaranteed loan. Is the SBA's 504 program the way to go?

2. Since there are so many types of dogs with various sizes, shapes, and fur, how might she figure out what to charge for her service? (Describe one primary and one secondary source of research she should consider.

3. What will her "competitive advantage" be over existing grooming businesses?

4. What might two of her variable cost be, and two of her fixed cost be to run this business. See chapter 8 for clarification of fixed vs variable cost.

5. Susan has limited funds and was wondering how she might use technology to promote her business. Provide her with two specific choices.

6. Describe two insurance needs Susan will have to consider for her new company

7. Overall do you think Susan has a sound business/market strategy? (Please elaborate)

Reference no: EM132292016

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