Do you want to start dog training business?
If you are thinking to start a dog training business, the first and foremost step you must take is preparing a dog training business plan. A comprehensive and detailed business plan is essential for any startup as it provides a roadmap for you to follow. In case you don’t have much knowledge about it, we are providing a sample business plan of a dog training startup, named The Pup Star.
Executive Summary
2.1 The Business
The Pup Star will be a licensed and insured dog training business, based in Concord, New Hampshire. The company will be owned by Jeff Smith, a passionate dog lover who has dedicated his life to serving dogs.
Jeff has acquired a beautiful facility on lease at a 5-minutes’ drive from the residential center of the city and has hired a well-known contractor for the purpose of converting it into a training center. The company’s name, selected from a wide list of dog training business names indicates Jeff’s vision: to make every pup a star.
2.2 Management
Jeff has been associated with numerous dog shelters and training centers for the last ten years, that’s why he perfectly knows how to start a dog training business and make it successful. He will hire a small team who will assist him in starting a dog training business as well as operating it later on.
2.3 Customers
The company aims to serve those dog owners who don’t know how to train their pups on their own and those who cannot spare time for this task due to their busy schedule. It will also provide dog training services to dog shelters and dog dealers present in Concord.
2.4 Target of the Company
We aim to become the best dog training center in Concord within the next two years of startup. We also aim to achieve the net profit margin of $10k per month by the end of the first year and then increase it steadily.
Company Summary
3.1 Company Owner
The Pup Star will be owned by Jeff Smith, a passionate dog lover who volunteered in a local shelter after completing his high school. It was when he discovered his passion for dogs and decided to dedicate his life to serving them. Since then, he has served in numerous dog shelters as well as dog training centers located across the country.
3.2 Why the Business is being started
Jeff discovered his love for dogs around 10 years ago when he volunteered for the first time in a local shelter. It was when he decided to start dog training business of his own. Fast forward to 10 years, Jeff is now all set to make his dream come true and owing to his extensive experience, he knows everything about how to start your own dog training business.
3.3 How the Business will be started
The Pup Star will be a licensed and insured dog training business, based in Concord, New Hampshire. Jeff will be starting his business using the savings that he made during the last 10 years. Though he won’t be needing any loans initially, he still has made arrangements in case the need arises.
Jeff has acquired a beautiful facility on lease at a 5-minutes’ drive from the residential center of the city. To convert the facility into a training center for dogs, the company has hired the services of Williamsons Contractors. The startup expense summary, as highlighted by Jeff’s dog training business plan is as follows:
The detailed start-up requirements, total start-up expenses, total assets, start-up funding, total funding required, total assets, total liabilities, total planned investment, total capital, total capital, and liabilities, as forecasted by company’s analysts, is given below:
| Start-up Expenses | ||
| Legal | $55 300 | |
| Consultants | $0 | |
| Insurance | $32 750 | |
| Rent | $32 500 | |
| Research and Development | $32 750 | |
| Expensed Equipment | $32 750 | |
| Signs | $1 250 | |
| TOTAL START-UP EXPENSES | $187 300 | |
| Start-up Assets | $220 875 | |
| Cash Required | $332 500 | |
| Start-up Inventory | $32 625 | |
| Other Current Assets | $232 500 | |
| Long-term Assets | $235 000 | |
| TOTAL ASSETS | $121 875 | |
| Total Requirements | $245 000 | |
| START-UP FUNDING | ||
| START-UP FUNDING | $273 125 | |
| Start-up Expenses to Fund | $151 875 | |
| Start-up Assets to Fund | $123 000 | |
| TOTAL FUNDING REQUIRED | $0 | |
| Assets | $23 125 | |
| Non-cash Assets from Start-up | $18 750 | |
| Cash Requirements from Start-up | $0 | |
| Additional Cash Raised | $18 750 | |
| Cash Balance on Starting Date | $21 875 | |
| TOTAL ASSETS | $373 125 | |
| Liabilities and Capital | $0 | |
| Liabilities | $0 | |
| Current Borrowing | $0 | |
| Long-term Liabilities | $0 | |
| Accounts Payable (Outstanding Bills) | $0 | |
| Other Current Liabilities (interest-free) | $0 | |
| TOTAL LIABILITIES | $0 | |
| Capital | $620 125 | |
| Planned Investment | $620 125 | |
| Investor 1 | $0 | |
| Investor 2 | $0 | |
| Other | $0 | |
| Additional Investment Requirement | $0 | |
| TOTAL PLANNED INVESTMENT | $620 125 | |
| Loss at Start-up (Start-up Expenses) | $313 125 | |
| TOTAL CAPITAL | $251 875 | |
| TOTAL CAPITAL AND LIABILITIES | $251 875 | |
| Total Funding | $255 000 | |
Products
The Pup Star will serve those people who don’t know how to train their pups on their own and those who cannot spare time for this task due to their busy schedule. In any case, we will always be there to train their pus and convert them into ‘pup stars’. Our primary services, as highlighted by dog training business plan sample are as follows:
- Dog sitting, eating, and potty training
- Dog obedience training
- Guard dog training
- Service dog training
We will also sell pet related products such as pet foods, shampoos, pet clothes, dog ties, dog chains, etc. so as to provide one-stop service to our customers.
Marketing Analysis of Dog Training Business
Note
The most important component of an effective dog training business plan is its accurate marketing analysis because it helps you to know your target customers so that you don’t waste your efforts on others. Considering its importance, the marketing analysis must be done before you think about how to open a dog training business.
Selecting attractive dog training business names can play a great role in attracting your target audience to your business, so make sure to do so after going through the dog training business names ideas available online.
5.1 Market Trends
The pet industry is one of the biggest and fastest growing industries in the US. Pet owners spent more than $60.28 billion in 2015, $66.75 billion in 2016, and $69.36 billion in 2017, according to the American Pet Products Association. These astronomical numbers can indicate how huge the pet market is, and since people don’t hesitate to spend on their animal friends, a dog training business can be immensely profitable.
5.2 Marketing Segmentation
After carrying out thorough research to identify our target customer audience, we have identified the following target groups who have the potential to become our loyal customers in the future.
The detailed marketing segmentation of our target audience is as follows:
5.2.1 Dog Owners:
Two types of dog owners will require the services of The Pup Star: those who don’t know how to train their pups on their own and those who cannot spare time for this task due to their busy schedule. We are highly motivated to serve the needs of both these groups and train their dogs to make them obedient and well-mannered. We will also train service dogs which provide support to the senior citizens.
5.2.2 Animal Shelters
There are thousands of animal shelters scattered across the US who accommodate abandoned, stray, lost, or discarded dogs. These shelters will heavily require our services because they need to have their properly trained so that people can adopt them.
5.2.3 Dog Dealers
Dog dealers also need dog training business strategy services because customers prefer to buy a trained dog over an untrained one, that’s why they will also be needing our services.
The detailed marketing segemntaion of our potential customers, as forecasted by financial experts, is outlined in the following table:
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Dog Owners | 48% | 22 334 | 32 344 | 43 665 | 52 544 | 66 432 | 10,00% |
| Animal Shelters | 32% | 12 867 | 14 433 | 15 999 | 17 565 | 19 131 | 15,32% |
| Dog Dealers | 20% | 11 433 | 13 344 | 16 553 | 18 745 | 20 545 | 13,43% |
| Total | 100% | 46 634 | 60 121 | 76 217 | 88 854 | 106 108 | 9,54% |
5.3 Business Target
We aim to become the best dog training center in Concord within the next two years of startup. Some of our other business targets are as follows:
- Achieving the net profit margin of $10k per month by the end of the first year, and increaseing it steadily
- Balancing the initial cost of startup with earned profits by the end of the first two years
- Launching another center in Concord within the first three years
5.4 Product Pricing
We will be charging our customers slightly lower prices than that of charged by our competitors because we want to introduce ourselves and establish our name in the region.
Strategy
UK Start-Up Visa Business Plan
After carrying out marketing analysis, the next step for opening a dog training business is to develop an effective sales strategy. It must be innovative so that it attracts and converts your audience into loyal customers. To make one for your own business, you can consult this dog training business plan template or the other sample plans available online.
6.1 Competitive Analysis
Our location will provide an extremely huge competitive advantage to us because no other dog training center is located within a 2-km radius of our facility. Many residents will undoubtedly prefer to leave their dogs with us, instead of traveling to distant areas. Moreover, our competitive rates and exceptional service will also be an enormous competitive advantage. We will be offering transportation services for the purpose of facilitating our customers.
At our training center, we will always have vets available at hand. They will make sure that our customers’ dogs are in the best physical and mental health state. We will make sure that your pup leaves our training center as a well-mannered star.
6.2 Sales Strategy
Some of the ways by which we will be attracting and retaining our customers are as follows. We will be offering attractive packages and discounts for dealers and shelters to boost sales, arranging transportation to facilitate customers, providing special dog training business cards and discounts on referrals, and advertising ourselves through all platforms, especially social media.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
Considering our service quality and the current market demand for dog training services, our sales pattern is estimated to increase with years. Our experts have forecasted following sales.
The detailed information about sales forecast, total unit sales, total sales, as forecased by financial experts, is given in the following table.
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Advertising and branding services | 1 887 030 | 2 680 320 | 2 588 240 |
| Marketing consultation and advisory services | 802 370 | 815 430 | 823 540 |
| Blogging and specialty services | 539 320 | 770230 | 1 002 310 |
| Social media profile management services | 265 450 | 322 390 | 393 320 |
| TOTAL UNIT SALES | 3 494 170 | 4 588 370 | 4 807 410 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Advertising and branding services | $140,00 | $150,00 | $160,00 |
| Marketing consultation and advisory services | $600,00 | $800,00 | $1 000,00 |
| Blogging and specialty services | $700,00 | $800,00 | $900,00 |
| Social media profile management services | $650,00 | $750,00 | $850,00 |
| Sales | |||
| Advertising and branding services | $2 149 800 | $2 784 000 | $3 383 200 |
| Marketing consultation and advisory services | $120 050 | $194 500 | $268 500 |
| Blogging and specialty services | $50 110 | $71 600 | $93 000 |
| Social media profile management services | $139 350 | $194 600 | $249 850 |
| TOTAL SALES | |||
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Advertising and branding services | $0,70 | $0,80 | $0,90 |
| Marketing consultation and advisory services | $0,40 | $0,45 | $0,50 |
| Blogging and specialty services | $0,30 | $0,35 | $0,40 |
| Social media profile management services | $3,00 | $3,50 | $4,00 |
| Direct Cost of Sales | |||
| Advertising and branding services | $989 300 | $1 839 000 | $2 679 700 |
| Marketing consultation and advisory services | $66 600 | $119 900 | $173 200 |
| Blogging and specialty services | $17 900 | $35 000 | $52 100 |
| Social media profile management services | $19 400 | $67 600 | $115 800 |
| Subtotal Direct Cost of Sales | $1 294 100 | $1 699 400 | $2 104 700 |
Personnel plan
A personnel plan will help you with your staffing needs, so make sure to make it a part of your dog training business plan even if you are starting a dog training business from home.
7.1 Company Staff
Jeff will manage the center himself and will hire a small team to assist him with the operations. The following staff will be hired on contract basis:
- 1 Accountant for maintaining financial records.
- 1 Front Desk Officer for serving as receptionist.
- 2 Sales and Marketing Executives for dealing with dog dealers, animal shelters, and for discovering new avenues.
- 10 Dog Trainers for the purpose of training dogs accordingly.
- 2 Drivers for transportation of dogs.
7.2 Average Salary of Employees
The following table shows the forecasted data about employees alongside their salaries for next three years’ durations.
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Accountant | $85 000 | $95 000 | $105 000 |
| Front Desk Officer | $50 000 | $55 000 | $60 000 |
| Sales and Marketing Executives | $187 000 | $194 000 | $201 000 |
| Dog Trainers | $450 000 | $455 000 | $465 000 |
| Vets | $245 000 | $252 000 | $259 000 |
| Drivers | $85 000 | $95 000 | $105 000 |
| Total Salaries | $695 000 | $707 000 | $724 000 |
Financial plan
The final step for you is to prepare a detailed financial plan of your business, covering all costs involved with your startup. Be it the cost of rent or inventory, the overhead expenses or the salaries of staff, the financial plan must include each and every financial aspect of your business.
It indicates the growth of your business as well as reveal if you are going in the right direction. Once you make it, you will easily know how to set up a dog training business and make it successful as well as profitable.
8.1 Important Assumptions
The financial projections of the startup are forecasted on the basis of the following assumptions. Even though these assumptions can show a slight deviation, the major financial business strategy of the company will still not be affected.
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 10,00% | 11,00% | 12,00% |
| Long-term Interest Rate | 10,00% | 10,00% | 10,00% |
| Tax Rate | 26,42% | 27,76% | 28,12% |
| Other | 0 | 0 | 0 |
8.2 Brake-even Analysis
| Brake-Even Analysis | ||
| Monthly Units Break-even | 5530 | |
| Monthly Revenue Break-even | $159 740 | |
| Assumptions: | ||
| Average Per-Unit Revenue | $260,87 | |
| Average Per-Unit Variable Cost | $0,89 | |
| Estimated Monthly Fixed Cost | $196 410 | |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $309 069 | $385 934 | $462 799 |
| Direct Cost of Sales | $15 100 | $19 153 | $23 206 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $15 100 | $19 153 | $23 206 |
| Gross Margin | $293 969 | $366 781 | $439 593 |
| Gross Margin % | 94,98% | 94,72% | 94,46% |
| Expenses | |||
| Payroll | $138 036 | $162 898 | $187 760 |
| Sales and Marketing and Other Expenses | $1 850 | $2 000 | $2 150 |
| Depreciation | $2 070 | $2 070 | $2 070 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $4 000 | $4 250 | $4 500 |
| Insurance | $1 800 | $1 800 | $1 800 |
| Rent | $6 500 | $7 000 | $7 500 |
| Payroll Taxes | $34 510 | $40 726 | $46 942 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $188 766 | $220 744 | $252 722 |
| Profit Before Interest and Taxes | $105 205 | $146 040 | $186 875 |
| EBITDA | $107 275 | $148 110 | $188 945 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $26 838 | $37 315 | $47 792 |
| Net Profit | $78 367 | $108 725 | $139 083 |
| Net Profit/Sales | 30,00% | 39,32% | 48,64% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $40 124 | $45 046 | $50 068 |
| Cash from Receivables | $7 023 | $8 610 | $9 297 |
| SUBTOTAL CASH FROM OPERATIONS | $47 143 | $53 651 | $59 359 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $47 143 | $53 651 | $55 359 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $21 647 | $24 204 | $26 951 |
| Bill Payments | $13 539 | $15 385 | $170 631 |
| SUBTOTAL SPENT ON OPERATIONS | $35 296 | $39 549 | $43 582 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $35 296 | $35 489 | $43 882 |
| Net Cash Flow | $11 551 | $13 167 | $15 683 |
| Cash Balance | $21 823 | $22 381 | $28 239 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $184 666 | $218 525 | $252 384 |
| Accounts Receivable | $12 613 | $14 493 | $16 373 |
| Inventory | $2 980 | $3 450 | $3 920 |
| Other Current Assets | $1 000 | $1 000 | $1 000 |
| TOTAL CURRENT ASSETS | $201 259 | $237 468 | $273 677 |
| Long-term Assets | |||
| Long-term Assets | $10 000 | $10 000 | $10 000 |
| Accumulated Depreciation | $12 420 | $14 490 | $16 560 |
| TOTAL LONG-TERM ASSETS | $980 | $610 | $240 |
| TOTAL ASSETS | $198 839 | $232 978 | $267 117 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $9 482 | $10 792 | $12 102 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $9 482 | $10 792 | $12 102 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $9 482 | $10 792 | $12 102 |
| Paid-in Capital | $30 000 | $30 000 | $30 000 |
| Retained Earnings | $48 651 | $72 636 | $96 621 |
| Earnings | $100 709 | $119 555 | $138 401 |
| TOTAL CAPITAL | $189 360 | $222 190 | $255 020 |
| TOTAL LIABILITIES AND CAPITAL | $198 839 | $232 978 | $267 117 |
| Net Worth | $182 060 | $226 240 | $270 420 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 4,35% | 30,82% | 63,29% | 4,00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 5,61% | 4,71% | 3,81% | 9,70% |
| Inventory | 1,85% | 1,82% | 1,79% | 9,80% |
| Other Current Assets | 1,75% | 2,02% | 2,29% | 27,40% |
| Total Current Assets | 138,53% | 150,99% | 163,45% | 54,60% |
| Long-term Assets | -9,47% | -21,01% | -32,55% | 58,40% |
| TOTAL ASSETS | 100,00% | 100,00% | 100,00% | 100,00% |
| Current Liabilities | 4,68% | 3,04% | 2,76% | 27,30% |
| Long-term Liabilities | 0,00% | 0,00% | 0,00% | 25,80% |
| Total Liabilities | 4,68% | 3,04% | 2,76% | 54,10% |
| NET WORTH | 99,32% | 101,04% | 102,76% | 44,90% |
| Percent of Sales | ||||
| Sales | 100,00% | 100,00% | 100,00% | 100,00% |
| Gross Margin | 94,18% | 93,85% | 93,52% | 0,00% |
| Selling, General & Administrative Expenses | 74,29% | 71,83% | 69,37% | 65,20% |
| Advertising Expenses | 2,06% | 1,11% | 0,28% | 1,40% |
| Profit Before Interest and Taxes | 26,47% | 29,30% | 32,13% | 2,86% |
| Main Ratios | ||||
| Current | 25,86 | 29,39 | 32,92 | 1,63 |
| Quick | 25,4 | 28,88 | 32,36 | 0,84 |
| Total Debt to Total Assets | 2,68% | 1,04% | 0,76% | 67,10% |
| Pre-tax Return on Net Worth | 66,83% | 71,26% | 75,69% | 4,40% |
| Pre-tax Return on Assets | 64,88% | 69,75% | 74,62% | 9,00% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 19,20% | 21,16% | 23,12% | N.A. |
| Return on Equity | 47,79% | 50,53% | 53,27% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 4,56 | 4,56 | 4,56 | N.A. |
| Collection Days | 92 | 99 | 106 | N.A. |
| Inventory Turnover | 19,7 | 22,55 | 25,4 | N.A. |
| Accounts Payable Turnover | 14,17 | 14,67 | 15,17 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 1,84 | 1,55 | 1,26 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | 0 | -0,02 | -0,04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $120 943 | $140 664 | $160 385 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0,45 | 0,48 | 0,51 | N.A. |
| Current Debt/Total Assets | 4% | 3% | 2% | N.A. |
| Acid Test | 23,66 | 27,01 | 30,36 | N.A. |
| Sales/Net Worth | 1,68 | 1,29 | 0,9 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
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