My Business – Pet sitting
My product will be a pet sitting service. It will look after people’s pets, such as cats, dogs, and small pets like rabbits, during a house move or whilst they go on holiday. My marketing strategy will decide the exact product, place, price and promotion of my business. The cost of this service will include the pet’s food, accommodation and other needs individual to specific pets for example straw for a rabbit. It will profit by receiving money for the care and attention given to their animals.
It will be successful as people can find trust in the trained staff that will care for their animals in comfortable surroundings and people with a great love for pets will be reassured that they are in safety when on holiday. I will sell this service within my own home and people will come to me for the service. My customers will be pet owners in the local area that are either going on holiday, away on business or moving house. I think this would be a suitable business for me as I have a passion for animals and have my own pets.
Therefore I recognize the needs and demands of a pet owner. Task 2 The Ownership of my Business There are many different types of business, which gives me numerous different options to choose from. Before I make a decision I am going to look at the advantages and disadvantages of different types of business. Being a sole trader has many advantages for example you can make your own decisions, keep all the profits and choose all your own hours. You also can have job satisfaction and independence so you don’t have to rely on anyone.
But being a sole trader has many disadvantages for instance you have to make all the decisions so there is a lot of pressure and you have to be willing to take risks due to unlimited liability. Also you have to raise all the capital to start up the business on your own. I don’t think that a sole trader would be a suitable type of business for my company because it would be too much responsibility for one person to run the business on their own and there are high risks because of unlimited liability.
Partnerships also have a lot of advantages for example you will benefit from a larger number of skills and more profitable ideas shared between the partners. Also the business can run without you as responsibility can be shared. It is also easier to raise capital, as there are more people to raise it. However partnerships do have their disadvantages. Profit has to be shared and you are responsible for debt as liability is unlimited. There are also a limited number of people that can run the partnership.
I think that a partnership would be the most suitable for my business as although there are risks as it has unlimited liability, there are many advantages as well. Responsibility can be shared and there can be a high number of skills and ideas shared between the partners. Being a franchise also has advantages for example you have a greater chance of success as you can use a trusted brand name. It is also easier to get a bank loan, as there are fewer risks involved compared to smaller businesses. But is has many disadvantages.
You have to pay the franchiser a percentage of the turnover and You can’t sell the business without franchisers agreement. It also costs a lot initially and you have less independence than sole proprietors. I couldn’t use a franchise as my type of business as there is not a recognizable brand name for my company. I would much rather build up my own name and build up customer trust in my service. I could also consider being a co-operative as this type of business also has advantages. All members get a share of the profits and it is easy for others to buy shares in it.
It is also easy to raise finance as able to increase membership. But there are many disadvantages for instance you need to make a profit for the customers and prices would have to be fairly low to benefit the customers. This would not be suitable for my business because each member has to share the profits, which would not be beneficial as it will be a fairly small business. Also I wouldn’t want a lot of members to share the profit with, as it will be a fairly small business. I could set up my business up as an Ltd (private limited company) because of its advantages.
I would have limited liability so personal possessions will not be lost and control is held by a small number of people. You are also left to your own management of the profit. But there are many disadvantages as you can only sell shares to friends and family so it may be hard to raise capital. An Ltd would not be suitable for my business as it is extremely hard to raise the capital to set up the business. Also it would take longer and cost more to set up because of the legalities of the business. However I could become a plc, which has advantages too.
You don’t legally have to pay dividends and I would have limited liability. It is also easy to raise capital as shares can be sold to the general public. But there are also disadvantages of being a plc, as you have to pay the bank interest rates and have to give dividends to the shareholders. It is also hard to become a limited company, as you have to get a memorandum of association etc that takes a lot of time. Although if I chose to be a plc I would benefit from limited liability it would not really be suitable as it takes a lot of time and capital to set up because of the legalities involved.
Task 3 Desk (Secondary) Research For this task I have conducted some secondary research in order to help me form my own marketing strategy. Firstly I have constructed this map showing all the locations of Pet Sitting companies in Dorset. This will help to decide on the area my business will be based due to the amount of competition I may have in different areas. The red dots represent the pet sitting companies and the blue dots represent the pet shops in Dorset. We can see clearly that the most pet shops and pet sitting companies are in the Bournemouth and Christchurch area.
This shows that in this area there are a lot of pets as there is more demand for pet services. I have now zoomed in on the map to show a more detailed view of the area to show where exactly the pet shops and pet sitters are. I can see that there are equal amounts of pet shops in the Poole area as the Bournemouth area but no Pet Sitters in the Poole area. There must be a lot of pets in the area due to the large amount of pet shops so this would be a good area to set up the pet sitting business because there isn’t too much competition but still sufficient demand.
I found the pet sitting companies listed in the yellow pages and online at www. yell. com. This will help me to form the place in my market strategy as I can see where my competition is and I can see if there is an area with no pet sitting companies. This would mean I would have less local competition so ultimately more customers. This source and the results should be fairly reliable as they are all the listed pet sitting companies in Poole and the whole of Dorset so I haven’t missed any out which would provide me with inaccurate results.